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J FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 6 1 0 1 1 January 25, 1968 J L Transactions in U. S. Securities Other Than Savings Bonds Revision of Operating Circular No. 17 To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: Enclosed is a copy of our Operating Circular No. 17, Kevised Janu ary 25, 1968. The revised circular contains changes resulting from the institution of the book-entry procedure for Treasury securities, which was announced in our Circular No. 6075, dated December 12, 1967. The circular also reflects a change in the rules concerning telegraphic transfers of Treas ury securities that had been pledged on original issue as collateral for a Treasury Tax and Loan Account. Treasury securities withdrawn from such pledge are no longer eligible for telegraphic transfer without the usual fee. They continue to be transferable between the cities specified in para graph 11, however, if the requirements of paragraph 10 are met. Additional copies of this circular and its enclosure will be furnished upon request. A lfred H a y e s , President. F ederal Reserve Bank of N ew Y ork F is c a l A g e n t o f the U n ite d S ta tes Circular No. 17 ~l Revised January 25, 1968 J EOperating TRANSACTIONS IN U. S. SECURITIES OTHER THAN SAVINGS BONDS To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: This circular contains information and instructions relating to transactions with this Bank, as fiscal agent o f the United States, involv ing U. S. Treasury securities other than savings bonds. Questions con cerning 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. Treasury securities are contained in Treasury Department Circu lar 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. Treasury securities in accordance with Treasury Department Circular No. 300, and has prepared the follow ing 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 : This Bank’s form Treasury’s form Transfer of Registered Securities . GB 595 PD 1644 Exchange of Registered for Bearer Securities ........................................... GB 595 PD 1643 GB 595 PD 1642 Exchange of Bearer for Registered Securities ............................................. Denominational Exchange of Bearer Securities ................................................... Redemption of Registered or Inscribed Securities ...................................... GB 35 PD 1827 GB 596 PD 1705 Redemption of Bearer Securities GB 311 PD 1704 ESTATE OF DECEASED RESIDENT OF NEW YORK STATE 3. Treasury securities owned by a decedent at the time of death submitted through this Bank for exchange, transfer, reissue, or re demption should be accompanied by a waiver and consent from the New York State Department of Taxation and Finance if the owner died a resident of the State of New York and the face amount of the securities submitted, plus accrued interest, if any, exceeds $2 ,0 0 0 . TRANSPORTATION CHARGES AND RISKS Shipments from this Bank 4. Shipments from this Bank of Treasury 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 Treasury 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 Treasury 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 Treasury securities for exchange, transfer, redemption, or other authorized transaction must be made at the risk and expense of the owner. Persons shipping registered securi ties assigned in blank, or assigned for exchange for bearer securities without restriction on the delivery of such bearer securities, should remember 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 Treasury 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 2 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 with Treasury Department Circular J\o. 853 are covered by the Government Losses in Shipment Act, as amended. TELEGRAPHIC TRANSFERS OF U. S. TREASURY SECURITIES Transfers authorized 10. The Federal Reserve Banks, as fiscal agents of the United States, are authorized to transfer outstanding, unmatured, marketable securities of the United States (Treasury bonds, Treasury notes, Treas ury certificates of indebtedness, and Treasury bills), in bearer or bookentry form, for account of the owners, by wire between the cities specified in paragraph 1 1 ; 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 Treasury securi ties and payment in full has been made to us for the securities allotted against the subscription or tender, securities so allotted, in bearer or book-entry form, will be transferred in any amount, upon request of the owner, between any o f the cities specified in paragraph 1 1 , for his account. Transfers for any other reason, such as transfers for the convenience o f 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. A ll 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 of 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. 3 Transfers from New York or Buffalo 12. Treasury 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 the 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 trans ferred, they should be accompanied by our Form GB 573B. Copies of these forms will be furnished upon request. The securities for transfer should be presented with matured coupons detached and unmatured coupons attached. I f 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. Treasury securities for telegraphic transfer from New York or Buffalo, or requests for telegraphic transfers of securities held by us in book-entry form, must be received by our Head Office or Branch on or before the closing hours indicated below. Transfers against imme diate payment, as provided for below, will be made only when we have received previous instructions from another Reserve Bank or Branch to wire the securities and make payment. Business day preceding an in terest payment d a t e .............. Against receipt 12 noon 1‘2 noon 2 p.m. 2 p.m.* 3 p.m. 1 p.m.* Every other business day . . . . Against immediate payment Against payment * 3 p.m. from New York City to San Francisco, Los Angeles, Portland, Salt Lake City, and Seattle. Transfers to New York 14. Treasury securities transferred to New York by wire will be delivered to the transferee at our window. However, when such securi ties are transferred to us by wire for account of a member bank for which we will hold Treasury securities in book-entry form (as specified in Operating Circular No. 21), the securities will be entered in a bookentry account in the name of such member bank if we are requested to do so. Limitations 15. Transfers are not authorized— (a) On or after the date of maturity of the particular issue; or (b) In the ease 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 Treasury securities are to be delivered in accordance 4 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, 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 $3 will be charged for each transfer by wire of Treas ury securities o f any one series to be delivered to a single recipient, except that no fee will be charged for a transfer of securities allotted on original issue, as set forth in paragraph 1 0 . 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 o f 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 Treasury 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. BOOK-ENTRY TREASURY SECURITIES 20. Information and instructions relating to the issuance and maintenance by this Bank, as fiscal agent of the United States, of bookentry Treasury securities are contained in Treasury Department Circu lar No. 300, Subpart O, and in this Bank’s Operating Circular No. 21, effective January 1, 1968, copies of which will be furnished upon request. GENERAL Revision of this circular 21. The right is reserved to withdraw, add to, or amend at any time any of the provisions of this circular. Effect of this circular on previous circular 22. This circular supersedes our Operating Circular No. 17, Revised July 23, 1965, and the First Supplement thereto, dated February 23, 1966. A lfred H ayes, President. 6