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FEDERAL RESERVE BANK OF NEW YORK (Circular No. 1200, March 30, 1955 Amending) (Circular No, 1005, dated November 1, 1930,) (as Amended by Circular No. 1190, dated ) (March 20, 1933. ) COLLECTION OF CASH ITMS To Member and Ncnmember Clearing Banks i n t h e Second Federal Reserve D i s t r i c t : U n t i l further advised, a l l cash items drawn on unlicensed banks ( i n c l u d ing t h o s e for which a conservator has been appointed) w i l l be handled by Federal Reserve Banks in t h e usual manner under t h e terms of Federal Reserve Board r s Regulation J and c i r c u l a r No. 1005, dated November 1, 1950, as amended by c i r c u l a r No. 1190, dated March 20, 1953, issued pursuant t h e r e t o by t h e Federal Reserve Bank of New York, except t h a t outgoing cash l e t t e r s t o unlicensed member and nonmember banks w i l l contain t h e a d d i t i o n a l p r o t e s t instructions: " I f any item of l e s s than $500 i s r e t u r n e d for t h e s o l e reason tDrawn Against R e s t r i c t e d Account,• DO NOT PROTEST u n l e s s t h e word PROTEST,* with usual American Bankers Association d e s i g n a t i o n of a bank, i s stamped or w r i t t e n on t h e face t h e r e o f . " T h e r e f o r e , should you d e s i r e any items of l e s s than $500, drawn on an unlicensed member or nonmember bank, t o be p r o t e s t e d when r e t u r n e d s o l e l y for t h e r e a s o n "Drawn Against R e s t r i c t e d Account," p l e a s e stamp or w r i t e on face of t h e item t h e word "PROTEST" accompanied by usual American Bankers Association d e s i g n a t i o n of your bank. This c i r c u l a r supersedes and revokes our l e t t e r of March 14, 1933, addressed t o a l l banking i n s t i t u t i o n s i n t h e Second Federal Reserve D i s t r i c t , with r e f e r e n c e t o r u l e s r e g a r d i n g p r o t e s t of cash items drawn on unlicensed banking institutions. George L. Harrison, Governor. FEDERAL RESERVE BANK OF NEW YORK March 30, 1933.. REGULATIONS ISSUED BY THE SECRETLY OF THE TREASURY TITDSF. THE PRESIDENT 'S PROCLAMATIONS DECLARING MD CONTINUING A BANK HOLIDAY To A l l Member Banks in t h e Second Federal Reserve D i s t r i c t Not Licensed t o Resume F u l l Banking Operations: For your information, and supplementing our previous c i r c u l a r s on t h i s s u b j e c t , we quote below t h e t e x t of a r e g u l a t i o n which t h e Federal Reserve Board has advised us has been issued by t h e S e c r e t a r y of t h e Treasury under t h e P r e s i d e n t s proclamations of March 6 and 9, 1935, d e c l a r i n g and continuing a bank holiday. Regulation 5 1 . "Any banking i n s t i t u t i o n which i s a member of t h e Federal Reserve System and i s not licensed t o perform u s u a l banking f u n c t i o n s , but which i s duly authorized t o engage in t h e business of a c t i n g as t r u s t e e , executor, a d m i n i s t r a t o r , r e g i s t r a r of s t o c k s , and bonds, t r a n s f e r agent, guardian of e s t a t e s , a s s i g n e e , r e c e i v e r , committee of e s t a t e s of l u n a t i c s , or i n any other f i d u c i a r y c a p a c i t y , may t r a n s a c t such business i n t h e normal and usual manner and may make payments on account o f t h e p r i n c i p a l or income of t r u s t or other f i d u c i a r y funds t o t h e persons e n t i t l e d t h e r e t o : Provided, t h a t , except t o t h e extent permitted by other emergency banking r e g u l a t i o n s , no such banking i n s t i t u t i o n s h a l l withdraw or pay out any t r u s t or other f i d u c i a r y funds on deposit with any other department of such banking i n s t i t u t i o n or make any o t h e r payment in connection with any t r u s t or other f i d u c i a r y funds, which would o p e r a t e t o d i s c h a r g e , as a whole or i n p a r t , any i n d e b t e d n e s s , as d i s t i n g u i s h e d from any t r u s t or o t h e r fiduciary duty, of such banking institution. "This regulation supersedes emergency banking regulation #15 of March 7, 1953, which is hereby revoked."* As we are advised of the issuance of further regulations and interpretations by the Secretary of the Treasury under the President's proclamations declaring and continuing a bank holiday we will forward the text thereof to banking institutions in this d i s t r i c t . (* Hafsrence to our Circular No. 1168.) George L. Harrison, Governor. FEDERAL RESERVE BANK OF NEW YORK March 3 0 , 1933. REGULATIONS. ISSUED BY THE SECRETARY OF THE TREASURY UNDER THE PRESIDENT'S PRO CLAIvIAT IONS DECLARING AND CONTINUING A BANK HOLIDAY To A l l S t a t e Member Banks in the Second Federal Reserve D i s t r i c t Not Licensed to Resume F u l l Banking O p e r a t i o n s : For your informationi and supplementing our previous c i r c u l a r s on t h i s s u b j e c t , we quote below the t e x t of a r e g u l a t i o n which the Federal Reserve Board has advised u s has been issued by t h e S e c r e t a r y of the Treasury under the P r e s i d e n t ' s proclamations of March 6 and 9 , 1933, d e c l a r i n g and c o n t i n u i n g a bank holiday. Regulation 5 2 . "Any s t a t e bank which i s a member of t h e Federal Reserve System, and i s not l i c e n s e d by the S e c r e t a r y of t h e Treasury t o perform u s u a l banking f u n c t i o n s , may permit withdrawals of d e p o s i t s which a r e lawf u l l y secured by c o l l a t e r a l ; P r o v i d e d , t h a t such withdrawals a r e (a) p e r m i s s i b l e under a p p l i c a b l e l a w , (b) duly a u t h o r i z e d by the board of d i r e c t o r s of such bank, upon such terms with respect t o the r e l e a s e of collateral as will fully protect a l l depositors and other creditors against the creation of any preferences, and (c) approved by the appropriate State authority having supervision of such bank, "Any such bank is authorized to carry on such usual banking functions as may be essential to allow the withdrawals permitted by this regulation, subject to the provisions and restrictions above set forth and except as otherwise prohibited." As we are advised of the issuance of further regulations and interpretations by the Secretary of the Treasury under the President's proclamations declaring and continuing a bank holiday we will forward the text thereof to banking institutions in this d i s t r i c t . George L. Harrison, Governor.
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