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FE D E R A L R E S E R V E BANK
O F N EW YORK
Fiscal Agent of the United States
r Circular No. 5 6 7 9
July 23, 1965
J

L

TRANSACTIONS IN U. S. SECURITIES
OTHER THAN SAVINGS BONDS
Revision of Operating Circular No. 17

To A ll Banking Institutions, and Others Concerned,
in the Second Federal R eserve D istrict:

Enclosed is a copy of our Operating Circular No. 17, Revised July 23, 1965, on
transactions in U. S. securities other than savings bonds. In addition to editorial
changes, the revised operating circular incorporates the outstanding supplement to
the superseded circular and contains the following changes of substance:
In paragraph 2, changes have been made in the form numbers of certain of this B an k ’s
forms that are to be used to facilitate transactions in U. S. securities.
Paragraph 10 provides that, in addition to telegraphic transfers previously authorized,
we will transfer securities borrowed by a primary dealer in U. S. Government securities
if the delivery or redelivery of such securities in the city to which the transfer is to be made
is necessary to consummate the transaction.
The Appendix, Revised January 20, 1965, to Operating Circular No. 17, on
redemption of Treasury bonds to pay Federal estate taxes, is the latest that has been
issued and should not be discarded with the superseded edition of Operating Circular
No. 17.
Additional copies of the revised operating circular will be furnished upon
request.




A

lfred

H

a y e s

,

President.

Fed eral Reserve B ank
of

N ew Y ork

Fiscal Agent of the United States
J" Operating Circular No. 17 "1
L Revised July 23, 1965 J

TRANSACTIONS IN U. S. SECURITIES
OTHER THAN SAVINGS BONDS
To All Banking Institutions, and Others Concerned,
in the Second Federal Beserve District:

This circular contains information and instructions relating to
transactions with this Bank, as fiscal agent of the United States, involv­
ing U. S. securities other than savings bonds. Questions concerning
transactions that do not appear to be covered by this circular or by
Treasury Department Circular No. 300 (current revision) should be
referred to this Bank before action is taken.
The Appendix to this circular, entitled “ Redemption of Treasury
Bonds to Pay Federal Estate Taxes,” lists the series of Treasury bonds
redeemable at par to pay Federal estate taxes, and indicates the pro­
cedure to be followed in submitting those bonds to this Bank for that
purpose.
TREASURY DEPARTMENT CIRCULAR NO. 300

1. The general regulations of the Treasury Department governing
U. S. securities are contained in Treasury Department Circular No.
300, copies of which will be furnished by this Bank upon request.
Information on such transactions as transfers, exchanges, reissues,
and redemption is set forth in detail in that circular.
2. This Bank, as fiscal agent of the United States, is authorized
to handle transactions in U. S. securities in accordance with Treasury
Department Circular No. 300, and has prepared the following forms
to facilitate the handling at this Bank of certain of the transactions
indicated in that circular; these forms should be used in lieu of the
corresponding Treasury forms specified in the circular, as indicated
below:
Transfer of Registered Securities.......
Exchange of Registered for Bearer Secu­
rities .................................................
Exchange of Bearer for Registered Secu­
rities .................................................
Denominational Exchange of Bearer
Securities ..........................................
Redemption of Registered or Inscribed
Securities ..........................................
Redemption of Bearer Securities.........



This BanTc’s
form
GB 595

Treasury’s
form
PD 1644

GB 595

PD 1643

GB 595

PD 1642

GB 35

PD 1827

GB 596
GB 311

PD 1705
PD 1704

ESTATE OF DECEASED RESIDENT OF NEW YORK STATE

3. U. S. securities owned by a decedent at the time of death sub­
mitted through this Bank for exchange, transfer, reissue, or redemp­
tion should be accompanied by a waiver and consent from the New
York State Department of Taxation and Finance if the owner died
a resident o f the State of New York and the face amount of the securi­
ties submitted, plus accrued interest, if any, exceeds $2,000.
TRANSPORTATION CHARGES AND RISKS

Shipments from this Bank
4. Shipments from this Bank of U. S. securities on original issue
will be made by registered mail at the risk and expense of the United
States.
5. Shipments from this Bank of bearer U. S. securities on other
than original issue will be made by registered mail and insured under
our registered mail insurance policies, at the risk and expense of the
owner, unless we receive written instructions to the contrary.
6. Shipments from this Bank of registered U. S. securities on
other than original issue will be made by registered mail without
expense to, but at the risk of, the owner. Such shipments will not
be insured, unless we receive written instructions to arrange for
insurance.
Shipments to this Bank
7. Shipments to this Bank of U. S. securities for exchange, trans­
fer, redemption, or other authorized transaction must be made at the
risk and expense of the owner. Persons shipping registered securities
assigned in blank, or assigned for exchange for bearer securities with­
out restriction on the delivery of such bearer securities, should remem­
ber that such securities are in effect payable to bearer and should be
treated accordingly.
Insurance coverage
8. This Bank holds certain open policies for registered mail insur­
ance under which shipments of securities that are not made at the risk
and expense of the United States may be insured at the expense of the
bank requesting the shipment by us or to us. The coverage afforded
by these policies and the procedure for effecting insurance under them
are set forth in our Operating Circular No. 14, sent to all member and
nonmember banks in this District.
9. Under the provisions of Treasury Department Circular No. 853,
copies of which will be furnished upon request, banks may effect some
savings in insurance costs when shipping U. S. securities to the Head
Office or Buffalo Branch of this Bank. To be eligible for shipment
under Circular No. 853, the securities must have been issued payable
to bearer; they must be owned by the shipping bank or its customers;
the securities must be restrictively endorsed; and the shipment must
be made within one calendar month prior to the date of payment,
redemption, or optional exchange. Shipments made in accordance



2

with Treasury Department Circular No. 853 are covered by the Gov­
ernment Losses in Shipment Act, as amended.
TELEGRAPHIC TRANSFERS OF SECURITIES

Transfers authorized
10. The Federal Reserve Banks, as fiscal agents of the United
States, will transfer outstanding, unmatured, marketable, bearer secu­
rities of the United States (Treasury bonds, Treasury notes, Treasury
certificates of indebtedness, and Treasury bills), for account of the
owners, by wire between the cities specified in paragraph 11; provided
the securities equal or exceed $5,000 in total face amount, and—
(a) The transfer is in connection with a sale of securities and deliv­
ery in the city to which the transfer is to be made is necessary to con­
summate the sale, or
(b) The securities have been borrowed by a primary dealer in such
securities and delivery or redelivery in the city to which the transfer is
to be made is necessary to consummate the transaction.

In addition, when a subscription or tender is entered with this Bank
in connection with any public offering of marketable U. S. securities
and payment in full has been made to us for the securities allotted
against the subscription or tender, securities in bearer form so allotted
will be transferred in any amount, upon request of the owner, between
any of the cities specified in paragraph 11, for his account. Outstand­
ing, unmatured, marketable, bearer securities that have been pledged
on original issue as collateral for a Treasury Tax and Loan Account
may also be transferred by wire in any amount at the time of with­
drawal from pledge if the transfer is required in connection with the
delivery of the securities to the owner or his agent in one of the cities
specified. Transfers for any other reason, such as transfers for the
convenience of owners or transfers of securities as collateral, are not
authorized. Wire transfers are provided for owners of securities as
a privilege and not as a right. All transfers are conditioned on the
existence of adequate facilities of the Federal Reserve Banks, without
responsibility on their part for delays in effecting deliveries for any
reason whatever.
Cities between which transfers may be made
11. Any o f the securities specified in paragraph 10 may be trans­
ferred against payment or receipt between any of the following cities:
Boston, New York, Philadelphia, Cleveland, Cincinnati, Pittsburgh,
Richmond, Baltimore, Charlotte, Atlanta, Birmingham, Jacksonville,
Nashville, New Orleans, Chicago, Detroit, St. Louis, Little Rock,
Louisville, Memphis, Minneapolis, Kansas City, Denver, Oklahoma
City, Omaha, Dallas, El Paso, Houston, San Antonio, San Francisco,
Los Angeles, Portland, Salt Lake City, and Seattle. Transfer of any
of such securities may be made between any of the cities mentioned
and Washington, D. C., but such transfers may be made only against
receipt. Such securities may also be transferred from the city of
Buffalo to New York City or to any of the other cities named above.



Transfers from New York or Buffalo
12. Securities presented to our Head Office or Buffalo Branch for
transfer by wire should be accompanied by a signed request for the
transfer on our Form GB 435. I f securities are presented to our Head
Office for transfer to more than one Federal Reserve Bank or Branch
or if the amount presented exceeds the amount to be transferred, they
should be accompanied by our Form GB 573B. Copies of these forms
will be furnished upon request. Securities for transfer should be
presented with matured coupons detached and unmatured coupons
attached. If any unmatured coupons are missing, available funds in
the amount of the missing coupons will be acceptable in their place.
Closing hours for receipt of securities
13. Securities for telegraphic transfer from New York or Buffalo
must be received by our Head Office or Branch on or before the closing
hours indicated below. Transfers against immediate payment, as pro­
vided for below, will be made only when we have received previous
instructions from another Reserve Bank or Branch to wire the securi­
ties and make payment.
Against
payment

12 noon
1 p.m.*

Business day preceding an in­
terest payment d a t e ............
Every other business d a y -----

Against
receipt

12 noon
2 p.m.*

Against
immediate
payment

2 p.m.
3 p.m.

* 3 p.m. from N ew Y ork City to San Francisco, L o s Angeles, Portland, Salt Lake
City, and Seattle.

Transfers to New York
14. Securities transferred to New York by wire will be delivered
to the transferee at our window. However, securities transferred to
us by wire for account of a member bank for which we will hold
securities in safekeeping (as specified in Operating Circular No. 14)
will be delivered to the safekeeping account of the member bank with
us, when we are so requested.
Limitations
15. Transfers are not authorized—
(a) On or after the date of maturity of the particular issue; or
(b) In the case of bonds or notes that have been called for redemp­
tion, on or after the “ call redemption date” (the date on which such
bonds or notes are redeemable and on which they will cease to bear inter­
est as specified in the notice of call for redemption).

16. Whenever a Federal Reserve Bank or Branch located in the
city in which securities are to be delivered in accordance with a
transfer by wire is unable to deliver the securities before the close of
business on a day that is, for that Bank or Branch, either
(a) The last business day of a calendar month, or
(b) The last business day preceding an interest payment date for
the securities involved,



4

the securities will not be delivered until new instructions are received
from the transferor; whenever such a Federal Reserve Bank or Branch
is unable to deliver the securities before the close of business on a day
that is, for that Bank or Branch, the last business day preceding
either the date of maturity or the “ call redemption date” for the
securities involved, the transfer will be canceled.
Fees
17. A fee of $5 will be charged for each transfer by wire of securi­
ties o f any one series to be delivered to a single recipient, except that
no fee will be charged for a transfer of—
(a) Securities allotted on original issue, as set forth in paragraph
10, or
(b) Securities withdrawn from pledge on original issue as collateral
for a Treasury Tax and Loan Account, as set forth in paragraph 10.

Securities of two or more different series may not be combined in a
single transfer, nor may securities to be delivered to two or more
recipients be combined in a single transfer.
Payment of fees
18. Fees for transfers, as provided in paragraph 17, are to be
paid to the Federal Reserve Bank at which securities are presented
for transfer by wire. No fees will be collected by the Federal Reserve
Bank to which securities are transferred. Fees should be paid, at the
time securities are presented to this Bank for transfer, by check pay­
able to the order of “ Federal Reserve Bank of New York, Fiscal
Agent of the United States.” A member bank or nonmember clearing
bank may pay the fees by presenting, in lieu of a check, a proper
authorization to charge the amount thereof to its account on our books.
LOST, STOLEN, DESTROYED, OR MUTILATED SECURITIES

19. Relief on account of the loss, theft, destruction, mutilation,
or defacement of U. S. securities may be given under the authority
of, and subject to the conditions contained in, the Government Losses
in Shipment Act, as amended. The procedure for obtaining such
relief, and the cases in which it is available, are set forth in Treasury
Department Circular No. 300, copies of which will be furnished upon
request.
GENERAL

Revision of this circular
20. The right is reserved to withdraw, add to, or amend at any­
time any o f the provisions of this circular.
Effect of this circular on previous circular
21. This circular supersedes our Operating Circular No. 17,
Revised February 9, 1962, and the First Supplement thereto, dated
June 22, 1965.




A lfred

H ayes,

President.
5