Full text of Federal Reserve Bank of New York Circulars : 5248. Amendment to Regulation Q

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F E D E R A L R E S E R V E BANK
O F NEW YO R K
/-Circular No. 5 2 4 8 1
L October 3 0 , 1 9 6 2 j

AMENDMENT TO REGULATION Q
Effective October 15, 1962

To All Member Banks in the
Second Federal Reserve District:

Enclosed is a copy of an amendment, effective October 15, 1962, to
Regulation Q of the Board of Governors of the Federal Reserve System.
As announced in our Circular No. 5240, this amendment was issued pur­
suant to Public Law 87-827, approved October 15, 1962. The law and the
amendment to the regulation exempt, for a period of three years, deposits
of foreign governments and certain foreign institutions from regulation by
the Board of Governors as to the rate of interest that member banks may
pay on time deposits.
Additional copies of the amendment will be furnished upon request.




A lfred H

ayes,

President.

PAYMENT OF INTEREST ON D EPOSIT S

AMENDMENT TO REGULATION Q
I ssu ed b y t h e

B oard of G o v e r n o r s of t h e

F ederal R ese rv e S y s t e m

E ffective October 15, 1962, paragraph (a) of section 217.3 is amended
to read as follow s:

SECTION 217.3-MAXIMUM RATE OF INTEREST ON TIME AND
SAVINGS DEPOSITS

(a) Maximum rate prescribed from time to time.-E x c e p t

in ac­

cordance with the provisions of this part, no member bank shall pay
interest on any time deposit or savings deposit in any manner, directly
or indirectly, or by any method, practice, or device whatsoever.

No mem­

ber bank shall pay interest on any time deposit or savings deposit at a
rate in e x c e ss of such applicable maximum rate as the Board of Gover­
nors of the Federal Reserve System shall prescribe from time to time;
and any rate or rates which may be so prescribed by the Board will be
set forth in supplements to this part, which will be issued in advance of
the date upon which such rate or rates become effective.

During the

period commencing October 15, 1962, and ending upon the expiration of
three years after such date, the provisions of this paragraph shall not
apply to the rate of interest which may be paid by member banks on time
deposits of foreign governments, monetary and financial authorities of
foreign

governments

when

acting

as

such,

or international financial

institutions of which the United States is a member.