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FED ERA L R E SE R V E BANK O F NEW YO RK r C ircu la r N o . 4 4 1 0 ~l L J a n u a ry 11, 19S7 J TR A N SFE R S O F FUNDS R evision o f Operating Circular N o. 10 To all Member and Nonmember Clearing Banks in the Second Federal Reserve D istrict: Enclosed with this circular is a copy o f Operating Circular No. 10, Revised effective January 15, 1957, which supersedes the prior edition dated December 8, 1947, and the First Supplement thereto, dated January 8, 1951. The revised circular contains some editorial changes, and the following other changes: Paragraph 2 and paragraph 10 (form erly 9 ) now provide that tele graphic transfers o f bank balances which are made without charge fo r and to member banks must be in amounts that are multiples o f $1,000, instead o f in amounts o f $1,000 or over. Paragraph 6 now provides that, subject to a charge, interdistrict tele graphic transfers o f bank balances will be made fo r member banks to nonmember clearing banks in amounts that are multiples o f $1,000, instead o f multiples o f $100. B y other changes in this paragraph, all provision has been eliminated from the circular fo r our accepting requests from non member clearing banks to make telegraphic transfers to other Federal Reserve Districts. Paragraph 9, which is new in the circular, sets forth our current practice with respect to charges fo r telephone and telegraph advice o f credit on trans fers received from other Federal Reserve Banks or Branches. Paragraph 14, which is new in the circular, sets forth the limited extent to which we will now accept requests by telegraph from nonmember clearing banks for transfers within the Second Federal Reserve D istrict; such requests will be accepted only fo r transfers to member or other nonmember clearing banks located within the same territory— either H ead Office or Buffalo Branch— as the requesting nonmember clearing banks. The changes in paragraphs 2, 6 and 9, which relate to interdistrict transfers, have been adopted uniformly by all Federal Reserve Banks. Additional copies of the revised operating circular will be furnished upon request. A lfred H ayes, President. F R e d er a l o f N B e se r v e ew Y an k o rk O p e r a t in g C ir c u la r N o . 10 R e v is e d e f f e c t i v e J a n u a r y 1 5 , 1 9 5 7 TR A N SFE R S OF FUNDS To all M em ber Banks and N onm em ber Clearing Banks in the Second Federal R eserve D istrict: This circular sets forth the rules with respect to telegraphic and mail transfers o f funds made through the Federal Reserve Bank o f New Y ork in New Y ork City or its Buffalo Branch in Buffalo, N. Y ., (a ) to other Federal Reserve Banks (which as herein used shall include Branches o f Federal Reserve Banks) at the request o f member banks located in the Second Federal Reserve D istrict fo r credit to member banks and nonmember clearing banks, (b ) from other Federal Reserve Banks fo r credit to member banks and nonmember clearing banks located within the Second Federal Reserve District, (c ) between mem ber banks located within the Second Federal Reserve District, and (d ) between member banks and nonmember clearing banks located within the Second Federal Reserve District. TELEGRAPHIC TRANSFERS OF FUNDS TO AND FROM OTHER FEDERAL RESERVE BANKS AND BRANCHES Schedule o f time limits 1. Operating Circular No. 11 contains a schedule showing the latest hours 011 each business day at which we will receive and accept requests fo r telegraphic transfers o f funds on that day to other Federal Reserve Banks pursuant to the provisions o f this circular. W e may, in our discretion, receive and accept, 011 any business day after the hours shown in such schedule, requests fo r such transfers on that day, but only upon the understanding that the com pletion o f each requested transfer will be discretionary with the receiving Federal Reserve Bank. Transfers o f bank balances fo r and to m em ber banks 2. Telegraphic transfers o f funds between Federal Reserve Banks of bank balances in multiples o f $1,000 will be made without charge fo r member banks to member banks, and telegrams requesting us to make such transfers may be sent to us “ collect.” The term “ bank balance” shall be construed to mean an accumulation o f fun ds com prising an established account maintained by a member bank with its Federal Reserve Bank or with another member bank. 3. The descriptive data in telegrams transferring bank balances without charge must be limited to (1 ) the name of the sending member bank, (2 ) the name o f its correspondent member bank requesting the transfer, (3 ) the name o f the member bank receiving credit, and (4) the name o f its correspondent member bank. 4. Transfers fo r the benefit or use o f an individual, firm, corpora tion or nonmember bank, and transfers o f the proceeds o f individual collection items or individual cash letters, will not be made without charge. Other transfers fo r m em ber banks 5. Telegraphic transfers o f funds for any purpose and in any amount and without limitation as to descriptive data w ill be made for and paid to member banks subject in each case to a charge (except transfers o f bank balances in multiples o f $1,000 as described above) which will approximate but not exceed the commercial wire rate fo r the telegram or telegrams involved in the transfer. W hile such trans fers w ill be accepted from and paid to member banks only, they may be fo r the use o f any bank, individual, firm or corporation. 6. A t the request o f member banks, telegraphic transfers o f bank balances in multiples o f $1,000 will be made to nonmember clearing banks subject to a charge as outlined in the preceding paragraph. 7. Member banks should prepay the cost o f telegrams when requesting us to make transfers that are subject to a charge. A dvice o f credit 8. M ail advice o f credit fo r all telegraphic transfers o f funds will be given by the Federal Reserve Bank receiving the transfer to the member or nonmember clearing bank receiving credit therefor and, in addition, immediate advice o f credit, by telegraph, telephone, or otherwise, will be given when the bank receiving credit or the bank requesting the transfer has asked fo r such immediate advice, or where the nature o f the transaction, or the amount involved, indicates that the additional expense is justified, as to which the receiving Federal Reserve Bank will exercise its discretion. 9. Long distance telephone charges and telegraph charges, if any, in connection with such immediate advices will be charged to the mem ber or nonmember clearing bank receiving credit unless the sending bank has requested that such expenses be charged to its account. TELEGRAPHIC TRANSFERS OF FUNDS WITHIN THE SECOND FEDERAL RESERVE DISTRICT Transfers o f bank balances fo r and to m em ber banks 10. Member banks in the Second Federal Reserve D istrict may request us b y telegraph to make transfers o f bank balances in multiples o f $1,000 to other member banks in this district, and telegrams request ing us to make such transfers may be sent to us “ collect.” The term 2 “ bank balance” shall be construed to mean an accumulation o f funds com prising an established account maintained b y a member bank with the Federal Reserve Bank o f New Y ork or with another member bank in the Second Federal Reserve District. 11. The descriptive data in telegrams transferring bank balances and sent “ collect” must be limited to (1 ) the name o f the sending member bank, (2 ) the name o f its correspondent member bank request ing the transfer, (3 ) the name o f the member bank receiving credit, and (4 ) the name o f its correspondent member bank. 12. Telegrams requesting us to make transfers fo r the benefit or use o f an individual, firm, corporation or nonmember bank, and trans fers o f the proceeds o f individual collection items or individual cash letters, should not be sent collect. Other transfers 13. Member banks in the Second Federal Reserve D istrict may request us b y telegraph to make transfers o f funds to other member or nonmember clearing banks in this D istrict fo r any purpose and in any amount and without limitation as to descriptive data. Such trans fers m ay be fo r the benefit or use o f any bank, individual, firm or corporation. Telegrams requesting us to make such transfers should be sent prepaid, and the cost o f telegrams sent b y us to member and nonmember clearing banks advising o f credit fo r such transfers will be charged to the accounts o f the banks requesting us to make the transfers. 14. Nonmember clearing banks located in the territory assigned to the H ead Office o f this Bank may request the H ead Office by telegraph to make transfers o f funds to member or other nonmember clearing banks located in the H ead Office territory. Nonmember clearing banks located in the territory assigned to the B uffalo Branch may request the Buffalo Branch b y telegraph to make transfers o f funds to member or other nonmember clearing banks located in the Branch territory. Such transfers may be made fo r any purpose, in any amount, and without limitation as to descriptive data, and may be fo r the benefit or use o f any bank, individual, firm or corporation. Telegrams requesting us to make such transfers should be sent prepaid, and the cost o f tele grams sent by us to member and nonmember clearing banks advising o f credit fo r such transfers will be charged to the accounts o f the banks requesting us to make the transfers. M AIL TRANSFERS 15. Transfers o f funds for any purpose and in any amount and without limitation as to descriptive data w ill be made by mail for member and nonmember clearing banks to other member and non member clearing banks located in this or in any other Federal Reserve District. W hile such transfers w ill be made fo r and paid to member and nonmember clearing banks only, they may be for the use o f any bank, individual, firm or corporation. 3 GENERAL 16. Transfers o f funds w ill be made by us only from collected funds on deposit with us to credit o f the bank making the request. 17. W hen a request to transfer funds is sent to us by telegram, the Am erican Bankers Association Code should be used with our test word, and a letter o f confirmation (not in code) over an authorized signature should follow. 18. Member banks and nonmember clearing banks are requested to cooperate with us by using the mails to effect transfers o f funds which do not require immediate credit, either by forw arding drafts direct or by using our mail transfer facilities. Liability o f the Federal Reserve Bank 19. The Federal Reserve Bank o f New Y ork will use due diligence and care in the transfer o f funds by telegraph or by mail to the receiv ing Federal Reserve Bank for credit to the account o f the payee bank, and in the transfer o f fun ds made on its books fo r banks within the Second Federal Reserve District, but will not be responsible fo r errors or delays caused by circumstances beyond its control. R evision o f this circular 20. The right is reserved to withdraw, add to, or amend at any time, any o f the provisions o f this circular. Effect o f this circular on previous circular 21. This circular supersedes our Operating Circular No. 10, dated December 8, 1947, and the F irst Supplement thereto, dated January 8, 1951. A lfred H a yes, President. 4
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