The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E S E R V E BA N K O F N EW YORK r Circular No. 4 7 5 3 L June 29, 1959 COLLECTION OF CASH ITEMS -Discontinuance o f Federal Reserve Exchange Drafts — Revision o f Tim e Schedules T o the M em ber and N onm em ber Clearing Banks, and Others Concerned, o f the Second Federal R eserve D istrict: E ffective J u ly 1, 1959, the authority o f member banks to issue F ederal R eserve exchange drafts drawn on this Bank is hereby terminated. E ffective on the same date, all other F ederal R eserve Banks are sim ilarly term inating the authority o f their member banks to issue F ederal R eserve exchange drafts draw n on them. This action has been taken because the F ederal R eserve S ystem ’s facilities fo r telegraphic and m ail transfers o f funds have practically eliminated the necessity fo r this special form o f draft. T o reflect this change, we have revised our O perating Circular No. 5, “ New Y ork H ead Office Tim e Schedule,” and O perating Circular No. 6, “ B uffalo B ranch Tim e Schedule,” both effective J u ly 1, 1959, b y deleting therefrom reference to F ederal R eserve exchange drafts. Copies o f the revised operating circulars are enclosed. In addition, the revised operating circulars contain the follow in g changes: Operating Circular No. 5 Paragraph 5 ( c ) now provides, as a condition fo r our giving immediate credit fo r officers’ checks o f other Federal Reserve Banks received at our H ead Office by 3 p.m., that such checks must be deposited in a separate cash letter. Paragraph 6 now provides that our H ead Office will give credit for items payable in Oklahoma C ity ; Portland, O regon; and Seattle one calendar day, instead of two, after receipt. Paragraph 8 has been amended by including items payable in Puerto R ico in a class o f deferred-credit items sent to our Head Office fo r which we m ay require separate sorting. Operating Circular No. 6 Paragraph 5 ( c ) now provides, as a condition for our giving immediate credit fo r officers’ checks o f other Federal Reserve Banks received at our Buffalo Branch by 3 p.m., that such checks must be deposited in a separate cash letter. Paragraph 9 has been amended by including items payable in Puerto R ico in a class o f deferred-credit items sent to our H ead Office fo r which we may require separate sorting. A dditional copies o f the revised operating circulars w ill be furnished upon request. A lfred H ayes, P r e s id e n t. F ed era l o f R N eserv e ew Yo B ank rk [ O p e r a t in g C ir c u la r N o . 5 "1 R e v is e d e ff e c t iv e J u ly 1 , 1 9 5 9 J N E W Y O R K H EA D OFFICE TIM E SCHEDULE To the Member and Nonmember Clearing Banks o f the Second Federal Reserve District (except Banks in the Territory assigned to the Buffalo Branch) : 1. This circular applies only to member and nonmember clearing banks located in the territory assigned to our H ead Office in New Y ork City. 'O u r H ead Office territory includes all of the Second Federal Reserve District except the follow ing counties in the State o f New York, which are in the terri tory assigned to our Buffalo B ran ch : A llegany, Cattaraugus, Chautauqua, Erie, Genesee, Livingston, Monroe, Niagara, Ontario, Orleans, Steuben, W ayne, W yom ing, and Yates. Our Operating Circular No. 6, entitled “ Buffalo Branch Time Schedule,” applies to member and nonmember clear ing banks in the territory assigned to such Branch. 2. A s heretofore, cash items sent to us by member and nonmember clear ing banks in the territory assigned to our H ead Office in New Y ork City should be sent to such H ead Office, except that such banks may at their option send cash items payable in the territory assigned to our Buffalo Branch either to our H ead Office in New Y ork City or to our Buffalo Branch. 3. Subject to the terms and conditions o f Regulation J o f the B oard o f Gov ernors o f the Federal Reserve System, o f our Operating Circular No. 4 relating to collection o f cash items, and o f this circular, we will give credit on our books to such member and nonmember clearing banks at the times indicated herein fo r cash items (a ) received and accepted at our H ead Office; (b ) payable in the territory assigned to our Buffalo Branch and sent direct to the B ran ch ; and (c ) payable in other Federal Reserve Districts and sent, with our permission, direct to the Federal Reserve Banks o f such other Districts fo r our account. W e act only as agent o f the banks from which we receive such cash items, or which send such cash items direct to Federal Reserve Banks o f other Districts for our account, and we do not act as agent or subagent o f any prior owners or holders o f such items. Credit fo r cash items received and accepted at H ead Office 4. Credit is subject to applicable closing times and to sorting require ments as shown herein ; credit fo r transfer drafts referred to in paragraph 14 is subject to the provisions o f that paragraph. Credit fo r items received after the applicable closing times will be com puted from the follow in g business day. W hen items fo r which there are different closing times are not sorted and listed in accordance with requirements, credit fo r all such items may be deferred for the longest time fo r which credit may be deferred fo r any o f such items as herein provided. Immediate Credit 5. Immediate credit will be given fo r the follow in g items when received within the applicable closing tim e: (a ) W hen received in time fo r presentment through clearing houses or special collection arrangements on the day o f receipt— Items drawn on or payable at New Y ork Clearing House Association banks L is ts o f ban ks r e fe r r e d to Certain other New Y ork City banks w ill be fu rn ish ed Northern New Jersey Clearing House Associa u p o n r eq u est. tion banks (b ) W hen received by 10 a.m.— Checks on the Treasurer o f the United States Postal Money Orders (c ) W hen received by 3 p.m.— Checks on Federal Reserve Bank o f New Y ork (including Buffalo B ranch) Officers’ checks o f other Federal Reserve Banks (only when deposited in a separate cash letter) Deferred Credit 6. Credit fo r all items other than those specified in paragraph 5 and transfer drafts (see paragraph 1 4 ), when received within the follow ing applicable closing times, will be given as specified below : (a ) Items payable in the Second Federal Reserve D istrict— W hen received by 1 :30 p.m. (items $500 and over deposited in a separate cash letter, 2:30 p.m .) W hen received by 10:00 a.m. on Saturdays (not otherwise public h olidays), items o f $500 and over deposited in a separate cash letter (b ) Items payable in other Federal Reserve Districts— W hen received by 12:30 p.m. (items $500 and over deposited in a separate cash letter, 2:30 p.m.) W hen received by 1 0 :30 a.m. on Saturdays (not otherwise public holidays) ONE CALENDAR DAY AFTER R E C E IP T Items payable in the follow in g Federal Reserve Bank or Branch cities:* Cleveland Dallas Denver Detroit Houston Jacksonville Kansas City, Kan. Kansas City, Mo. Atlanta Baltimore B ir m i n g h a m Boston Buffalo Charlotte Chicago Cincinnati TW O CALENDAR Louisville Memphis M in n e a p o lis Nashville Oklahoma City Omaha Philadelphia Pittsburgh DAYS AFTER Portland, Ore. Richmond St. Louis St. Paul Salt Lake City San A ntonio Seattle R E C E IP T Items payable in the follow in g Federal Reserve Bank or Branch cities: E l Paso Helena TW O Little Rock B U S IN E S S D A Y S AFTER New Orleans R E C E IP T Items payable in the follow ing Federal Reserve Bank or Branch cities: Los Angeles San Francisco and items drawn on or payable at (a ) banks on the P a r List in all localities outside o f Federal Reserve Bank or Branch cities, and (b ) banks in New York City other than those mentioned in paragraph 5 ( a ) . Sorting requirements 7. A n y member or nonmember clearing bank which has fo r collection a daily average o f not more than 300 immediate-credit and deferred-credit items payable outside o f the city or town in which such bank is located may, upon * For purposes of this circular, the term ‘ ‘ Federal Reserve Bank or Branch cities ’ includes Kansas City, Kan., and St. Paul. 2 application, be permitted to send its cash items to our H ead Office unsorted with one cash letter. Credit fo r items so sent, when received by 1 :30 p.m., will be given one business day after receipt. 8. Member banks and nonmember clearing banks, other than those per mitted to send their cash items to our H ead Office with one cash letter pursuant to paragraph 7, may be required, if volume warrants, to sort the cash items they send to our H ead Office into some or all o f the follow ing classes and send them with a separate letter and total fo r each class: Immediate-credit items subdivided into ( 1 ) C hecks on the T reasu rer o f the U n ited States ( 2 ) P o s ta l M o n e y O rders ( 3 ) A l l o th e r im m ed iate-cred it item s Deferred-credit items subdivided into ( 1 ) Item s p a y a b le in th e S tate o f N ew Y o r k ( 2 ) Item s p a y a b le in P u e rto R ic o , th e V ir g in Isla n d s, a n d in th ose cou nties o f N ew J e rs e y a n d C on n ecticu t th at a re in clu d ed in the S econ d F ed era l R e se rv e D is trict, n a m e ly : New Jersey— Counties of Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Passaic, Somerset, Sussex, Union, and Warren Connecticut—County of Fairfield ( 3 ) Item s p a y a b le in oth er F e d e ra l R e serv e D istricts, w h ich m ay b e sub d iv id e d in to classes a c co rd in g to the cre d it a v a ila b ility as p r o v id e d in p a ra g r a p h 6 f o r such item s. Credit fo r cash items sent direct to Buffalo Branch 9. Member and nonmember clearing banks that send cash items payable in the territory assigned to our Buffalo Branch direct to that Branch will be given credit fo r such items received at the Branch as specified b elow ; (a ) Items payable in the City o f Buffalo— O ne ca le n d a r d a y fr o m th e d isp a tch t h e r e o f; p r o v id e d , h ow ever, that F e d e ra l R e se rve B a n k o f N ew Y o r k m a y , b y g iv in g n o tice to su ch effect to a n y m em ber o r n on m em b er clea rin g b a n k , p r e scr ib e h ow , a n d the tim e o r tim es b e fo r e w hich, all item s o r certa in item s m ust be d isp a tch ed b y such b a n k in o rd e r to ob ta in such cred it. (b ) Items payable in localities outside o f the C ity o f Buffalo— A s in d ica ted in O p e ra tin g C ircu la r N o . 6 en titled “ B u ffa lo B ra n ch T im e S ch ed u le.” Credit fo r cash items sent direct to other Federal Reserve Banks 10. Member and nonmember clearing banks that have received permis sion to send cash items payable in other Federal Reserve Districts direct to other Federal Reserve Banks fo r account o f Federal Reserve Bank o f New Y ork (H ead Office) w ill be given credit fo r items so sent as specified below : (a ) Items payable in Federal Reserve Bank or Branch cities— B a sed on the tim e (n o t in excess o f tw o b usin ess d a y s ) n o rm a lly req u ired f o r the co lle ctio n th e re o f as in d ica ted in sep a ra te a v a ila b ility schedules fu rn is h e d to the resp ectiv e d irect-sen d in g b a n k s ; 3 (b ) Items payable in localities outside o f Federal Reserve Bank or Branch cities— T w o b usin ess d a y s fr o m th e d isp a tch th e r e o f; provided, however, that Federal Reserve Bank o f New Y ork may, by giving notice to such effect to any member or nonmember clearing bank, prescribe how, and the time or times before which, all items or certain items must be dispatched by such bank in order to obtain such credit. General provisions Time o f presentment 11. W e do not by this circular, or otherwise, agree to present any item, or to cause any item to be presented, earlier than such item is required to be presented, in the exercise o f ordinary care, under the provisions o f the Nego tiable Instruments Law o f New York. Effect of Saturday closing and holidays upon availability 12. Operating Circular No. 7 specifies the Federal Reserve Banks and Branches that are norm ally closed on Saturday, and the extent to which Saturday w ill not constitute a business day in determining the time when, pursuant to this circular, credit w ill be given fo r deferred-credit items drawn on, or payable at, banks located in the areas served by such Federal Reserve Banks or Branches. 13. W hen the day on which credit would otherwise be given, pursuant to this circular, is a Sunday or a Saturday or other holiday fo r Federal Reserve Bank o f New Y ork, credit will be given on the follow ing business day. Credit for transfer drafts 14. Credit w ill be given fo r transfer drafts drawn by member or nonmember clearing banks on their commercial bank correspondents based on actual transit time, whether received at our H ead Office or our Buffalo Branch or sent for our account direct to the Federal Reserve Bank in the D istrict where such draft is payable. Such drafts should be sent with separate cash letters; when sent direct to other Federal Reserve Banks, separate advices (marked “ Transfer D ra fts ” ) o f such direct sendings should be sent to the H ead Office. Revision of this circular 15. W e reserve the right at any time, with or without notice, to revoke, m odify, amend, or add to, this circular or any provision thereof, effective as to all or any particular member banks and nonmember clearing banks. Effect o f this circular on previous circular 16. This circular supersedes our Operating Circular No. 5, Revised effective October 28, 1957. A lfred I I ayes, President. 4 F ed era l o f R N eserv e ew Yo B ank rk C O p e r a t in g C ir c u la r N o . 6 "I R e v is e d e f f e c t i v e J u ly 1, 1 9 5 9 J B U FFA LO B R A N C H TIM E SCHEDULE To th e M em ber and N onm em ber Clearing Banks in the T erritory assigned to the Buffalo B ra n ch : 1. This circular applies only to member and nonmember clearing banks located in the territory assigned to onr Buffalo Branch (i. e., the counties of A llegany, Cattaraugus, Chautauqua, Erie, Genesee, Livingston, Monroe, Niagara, Ontario, Orleans, Steuben, W ayne, W yom ing, and Yates, in the State o f New Y o rk ). Our Operating Circular No. 5, entitled “ New Y ork Head Office Time Schedule,” applies to member and nonmember clearing banks in the territory assigned to our H ead Office in New Y ork City. 2. A s heretofore, cash items sent to us by member and nonmember clear ing banks in the territory assigned to our Buffalo Branch should be sent to our Buffalo Branch, except that such banks may at their option send cash items payable in the territory assigned to our H ead Office in New Y ork City either to such H ead Office or to our Buffalo Branch. 3. Subject to the terms and conditions o f Regulation J o f the B oard of Governors o f the Federal Reserve System, o f our Operating Circular No. 4 relating to collection of cash items, and o f this circular, we w ill give credit on our books to such member and nonmember clearing banks at the times indicated herein fo r cash items (a ) received and accepted at our Buffalo B ra n ch ; (b ) payable in the territory assigned to our H ead Office and sent direct to that Office; and ( c ) payable in other Federal Reserve Districts and sent, with our permission, direct to the Federal Reserve Banks o f such other Districts fo r our account. W e act only as agent o f the banks from which we receive such cash items, or which send such cash items direct to Federal Reserve Banks o f other Districts fo r our account, and we do not act as agent or subagent o f any prior owners or holders o f such items. Credit fo r cash items received and accepted at B uffalo Branch 4. Credit is subject to applicable closing times and to sorting require ments as shown herein; credit for transfer drafts referred to in paragraph 15 is subject to the provisions o f that paragraph. Credit fo r items received after the applicable closing times w ill be computed from the follow ing business day. W hen items fo r which there are different closing times are not sorted and listed in accordance with requirements, credit for all such items may be deferred for the longest time fo r which credit may be deferred fo r any o f such items as herein provided. Immediate Credit 5. Immediate credit will be given fo r the follow ing items when received within the applicable closing tim e: (a) W hen received in time fo r presentment through clearing houses or special collection arrangements on the day o f receipt— Items drawn on or payable at banks in Buffalo (b ) W hen received by 12:30 p.m.— Checks on the Treasurer o f the United States Postal Money Orders (c ) When received by 3 p.m.— Checks on Federal Reserve Bank o f New Y ork (including Buffalo B ranch) Officers’ checks o f other Federal Reserve Banks (on ly when deposited in a separate cash letter) Deferred Credit 6. Credit fo r all items other than those specified in paragraph 5 and transfer drafts (see paragraph 1 5), when received within the follow ing applicable closing times, will be given as specified b elow : (a ) Items payable in the Second Federal Reserve D istrict— W hen received by 2 p.m. (items $500 and over deposited in a separate cash letter, 3 p.m.) (b ) Items payable in other Federal Reserve Districts— W hen received by 1 2 :30 p.m. ONE CALENDAR DAY A F T E R R E C E IP T Items payable in New Y ork C ity drawn on or payable at. New Y ork Clearing House Association banks ) List of banks Certain other New Y ork City banks j "Jfurnt'hed *“ N orthern New Jersey Clearing House Association banks \ «P°nrequest. and items payable in the follow in g Federal Reserve Bank or Branch cities:* A tlanta Baltimore Birmingham Boston Charlotte Chicago Cincinnati Cleveland Dallas Denver Detroit J acksonville Kansas City, Kan. TW O CALENDAR DAYS Kansas City, Mo. Louisville Memphis Minneapolis Nashville Oklahoma City AFTER Omaha Philadelphia Pittsburgh Richm ond St. Louis St. Paul R E C E IP T Items payable in the follow in g Federal Reserve Bank or Branch cities: E l Paso Helena Houston TW O Little Rock New Orleans Portland, Ore. B U S IN E S S D A Y S Salt Lake City San A ntonio Seattle A F T E R R E C E IP T Items payable in the follow ing Federal Reserve Bank or Branch cities: Los Angeles San Francisco and items drawn on or payable at (a ) banks on the P ar List in all localities outside o f Federal Reserve Bank or Branch cities, and (b ) banks in New York City other than those mentioned above. Sorting requirements Item s sent to Buffalo Branch 7. A n y member or nonmember clearing bank which has fo r collection a daily average o f not more than 300 immediate-credit and deferred-credit items payable outside o f the city or town in which such bank is located may, upon application, be permitted to send its cash items to our Buffalo Branch unsorted with one cash letter. Credit fo r items so sent, when received b y 2 p.m., will be given one business day after receipt. * F or purposes o f this circular, the term “ Federal Reserve Bank or Branch citie s ” includes K ansas City, K an., and St. Paul. 2 8. Member and nonmember clearing banks, other than those permitted to send their cash items to our Buffalo Branch with one cash letter pursuant to paragraph 7, may be required, if volume warrants, to sort the cash items they send to our Buffalo Branch into some or all o f the follow ing classes and send them with a separate letter and total fo r each class: Immediate-credit items subdivided into (1) Checks on the Treasurer o f the United States (2) Postal Money Orders (3) All other immediate-credit items D eferred-credit items, which may be subdivided into classes according to the credit availability as provided in paragraph 6 fo r such items. Item s sent to H ead Office in N ew Y ork City 9. Member banks and nonmember clearing banks may be required, if volume warrants, to sort the cash items they send to our H ead Office in New Y ork City into some or all o f the follow ing classes and send them with a separate letter and total f o r each class: Immediate-credit items subdivided into (1) Checks on the Treasurer of the United States (2) Postal Money Orders (3) All other immediate-credit items D eferred-credit items subdivided into (1) Items payable in the State of New York (2) Items payable in Puerto Rico, the Virgin Islands, and in those counties o f New Jersey and Connecticut that are included in the Second Federal Reserve District, namely: New Jersey— Counties o f Bergen, Essex, H udson, H unterdon, Middlesex, Monmouth, M orris, Passaic, Somerset, Sussex, Union, and W arren Connecticut— County o f Fairfield Credit fo r cash items sent direct to H ead Office in New Y o rk City 10. Member and nonmember clearing banks that send cash items p ay able in the territory assigned to our H ead Office direct to that Office will be given credit fo r such items received at the H ead Office as specified b elow : (a ) Items drawn on or payable at New Y ork Clearing House Association banks, certain other New Y ork City banks, and Northern New Jersey Clearing House Association banks— One calendar day from the dispatch thereof; provided, however, that Federal Reserve Bank o f New York may, by giving notice to such effect to any member or nonmember clearing bank, prescribe how, and the time or times before which, all items or certain items must be dispatched by such bank in order to obtain such credit. (b ) Items drawn on or payable at all other banks in the territory assigned to our H ead Office— As indicated in Operating Circular No. 5 entitled “New York Head Office Time Schedule.” Credit fo r cash items sent direct to other Federal Reserve Banks 11. Member and nonmember clearing banks that have received permis sion to send cash items payable in other Federal Reserve Districts direct to 3 other Federal Reserve Banks fo r account o f Federal Reserve Bank o f New Y ork (Buffalo B ranch) will be given credit fo r items so sent as specified below: (a ) Items payable in Federal Reserve Bank or Branch cities— Based on the time (not in excess o f two business days) normally required fo r the collection thereof as indicated in separate availability schedules furnished to the respective direct-sending banks; (b ) Items payable in localities outside o f Federal Reserve Bank or Branch cities— Two business days from the dispatch thereof; provided, however, that Federal Reserve Bank o f New Y ork may, by giving notice to such effect to any member or nonmember clearing bank, prescribe how, and the time or times before which, all items or certain items must be dispatched by such bank in order to obtain such credit. General provisions T im e o f presentm ent 12. W e do not by this circular, or otherwise, agree to present any item, or to cause any item to be presented, earlier than such item is required to be presented, in the exercise o f ordinary care, under the provisions o f the Negotiable Instruments Law o f New York. E ffect o f Saturday closing and holidays upon availability 13. Operating Circular No. 7 specifies the Federal Reserve Banks and Branches that are normally closed on Saturday, and the extent to which Saturday w ill not constitute a business day in determining the time when, pursuant to this circular, credit will be given fo r deferred-credit items drawn on, or payable at, banks located in the areas served by such Federal Reserve Banks or Branches. 14. W hen the day on which credit would otherwise be given, pursuant to this circular, is a Sunday or a Saturday or other holiday fo r Federal Reserve Bank o f New York, credit will be given on the follow in g business day. C redit fo r transfer drafts 15. Credit w ill be given fo r transfer drafts drawn by member or nonmember clearing banks on their commercial bank correspondents based on actual transit time, whether received at our H ead Office or our Buffalo Branch or sent fo r our account direct to the Federal Reserve Bank in the D istrict where such d ra ft is payable. Such drafts should be sent with separate cash letters; when sent direct to other Federal Reserve Banks, separate advices (marked “ Transfer D ra fts ” ) o f such direct sendings should be sent to the Buffalo Branch. R evision o f this circular 16. W e reserve the right at any time, with or without notice, to revoke, m odify, amend, or add to, this circular or any provision thereof, effective as to all or any particular member banks and nonmember clearing banks. E ffect o f this circular on previous circular 17. This circular supersedes our Operating Circular No. effective October 28, 1957. 6, Revised A lfred H ayes, President. 4
@FedFRASER