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FEDERAL RESERVE BANK
OF NEW YORK
[
Circular No. 10252
July 26, 1988
]
PRIVATE SECTOR PRESENTMENT
Comment Period On Same-Day
Payment Proposal Extended Through December 1
To A ll Depository Institutions, and Others Concerned,
in the Second Federal Reserve District:
Our Circular No. 10235, dated April 15, 1988, contained the text of a proposal by the Board of Governors
of the Federal Reserve System regarding the concept of same-day payment for checks presented to paying banks
by private-sector collecting banks. The Board has extended the comment period on that proposal through December
1, 1988.
Following is the text of a statement issued by the Board of Governors announcing the extension:
The Federal Reserve Board has extended the period for comment on its proposed concept of same-day payment for
checks presented to paying banks by private sector collecting banks.
The proposed concept was published on April 5, 1988 with a comment period ending August 3, 1988.
In response to requests for additional time to prepare comments, the Board is extending the comment period through
December 1, 1988.
Under the proposed concept, paying banks would pay for checks presented by collecting banks prior to 2:00 p.m.
in same-day final funds, without the imposition of presentment fees.
Based upon the comments received, a specific proposal may be developed which could be issued for public comment
prior to establishment of formal rules on the issue.
Printed below is the text of the Board’s notice in this matter, as published in the Federal Register of July 21.
Comments on the proposal may be sent to the Board of Governors or to John F. Sobala, Vice President of our Check
Processing Function.
E . G e r a l d C o r r ig a n ,
President.
FEDERAL RESERVE SYSTEM
[Bocket MaR-0631]
Reqjutst for Comment; Private Sector
Presentment
AGENCY: Board of Governors of the
Federal Reserve System.
Extension of comment period.
collecting banks before 2:00 p.m. in
same-day funds and without the
imposition of any fees for these
presentments. 53 FR 11,911 (Apr. 11,
1988). The Secretary of the Board, acting
pursuant to delegated authority, 12 CFR
2@2.2fa}{0}, has extended the comment
period for 120 days.
bats: Comments must be received by
December 1,1988.
iRJlTMEl INFORIIATIOM
SUMMARY: Oh April 5,1988, the Board,
requested public comment on the
concept of requiring paying banks to pay
for checks presented by private sector
Elliott C McEnte®, Associate Director
(202-452-2231), Louise L. Roseman,
Associate Director (202-452-2789),
Thomas C. Luck, Senior Analyst (202-
452-395gj), Division of Federal Reserve
Bank Operations; jfoseph R. Alexander,
Senior Attorney (202-452-24®), Legal
Division; or for the hearing impaired
only. Telecommunications Device for
the Deaf, Eamestme Hill or Dorothea
Thompson (202-4§2-S5M).
By ofider of the Secretary of the Board,
acting pursuant to delegated authority, 12
CFR 265.2(a)(6), )u!y 15,1638.
WMiffisaW. wi©3,
Secretary o f the Board.
[FR D oc, 86-16371 Filed 7-20-88; 8:45 am]
BILUKS3 CSSS S2ie=01-C3
2
©
In addition to NMS-designated securitiesr the Board
will continue to monitor the market activity of other OTC stocks
to determine which stocks meet the requirements for inclusion and
continued inclusion on the List.
Margin regulations generally limit the amount of credit.
a person or firm may obtain to buy or carry stock.
Stocks on the
List of Marginable OTC Stocks are subject to the same margin
requirements (currently 50 percent) as stocks listed on national
securities exchanges.
This means a person or firm buying a stock
on credit must make a down payment equal to at least 50 percent
of the purchase price of the stock and may obtain credit for the
remaining 50 percent*
These margin requirements are only
applicable to credit extended on OTC Stocks after they are placed
on the List and the List has become effective or are designated
as NMS Securities.
No credit may be extended by broker-dealers
on OTC stocks not on the List or in the NMS group.
Credit
extended by banks and other lenders on OTC stocks not on the List
or in the NMS group need only conform to the good faith lending
limitation contained in Regulations G and U.
It is unlawful for any person to cause any
representation to be made that inclusion of a stock on this List
indicates that the Board or the Securities and Exchange
Commission has in any way passed upon the merits of any such
stock or transaction therein.
Any references to the Board in
connection with the List or any stocks thereon in any
advertisement or similar communications is unlawful.
FEDERAL RESERVE press release
For use in morning papers
July 25, 1988
July 22, 1988
The Federal Reserve Board today published a revised
list of over-the-counter (OTC) stocks that are subject to its
margin regulations, effective August 8, 1988
This revised List of Marginable OTC Stocks supersedes
the List of Marginable OTC Stocks that was effective on May 9,
1988c
The changes that have been made in the List, which now
includes 3,147 OTC stocks, are as follows?
77 stocks have been included for the first
time, 63 under NMS designation.
—
68 stocks previously on the List have been
removed for substantially failing to meet the
requirements for continued listing.
—
77 stocks have been removed for reasons such as
listing on a national securities exchange or
involvement in an acquisition0
The list includes all over-the-counter securities
designated by the Board pursuant to its established criteria as
well as all stocks designated as National Market System (NMS)
securities for which transaction reports are required to be made
pursuant to an effective transaction reporting plan.,
Additional
OTC securities may be designated as NMS securities in the interim
between the Board's quarterly publications and will be
immediately marginable*
The next publication of the Board's list
is scheduled for November 1988„
(OVER)
@FedFRASER