The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK r C ircular N o. 6 9 1 8 L M arch 2 4 , 1972 ~1 J COLLECTION OF CASH AND NONCASH ITEM S — E lim ination of Charges fo r Com m unications on Cash Item s — T echnical Changes in O ur O perating C irculars Nos. 4, 6, and 8 To the M em ber and N onm em ber Banks of the Second Federal Reserve District, and Others Concerned: Enclosed are copies of the following documents, all effective A pril 1, 1972: (a) F irst Supplement to Operating Circular No. 4 (Collection of Cash Items), Revised effective Sep tember 2, 1969; (b) F irst Supplement to Operating Circular No. 6 (Instructions to Collecting Banks and Paying Banks), dated September 1, 1967; (c) Second Supplement to Operating Circular No. 8 (Collection of Noncash Items), Revised effective September 1, 1967; (d) Revisions of Appendixes B and C to Operating Circular No. 4, Revised effective September 2, 1969. Appendix B contains provisions governing the collection of postal money orders, and Appendix C, of food coupons. The enclosures reflect the following uniform changes in the collection circulars of the F ederal Reserve B an k s: Paragraph 23 of Operating Circular No. 4 has been amended to permit all communications between this Bank and its member banks and nonmember clearing banks regarding the collection of cash items to be made without charge to such banks. Footnote 3 of Operating Circular No. 4, and footnote 1 of Operating Circulars Nos. 6 and 8, have been amended to designate American Samoa as being in or of the Twelfth Federal Reserve District for the p u r poses of those circulars, in accordance with an October 26, 1971 amendment to Regulation J of the Board of Governors of the Federal Reserve System. Operating Circulars Nos. 4 and 8, and Appendix C to Operating Circular No. 4, have been amended to reflect changes in agreements between the U.S. Department of Agriculture and the Reserve Banks. In accordance with these changes, “ food stamp coupons” are now referred to as “ food coupons” and food certificates, as well as food coupons, will be handled by the Reserve Banks as cash items. Appendix C has also been amended to conform to technical changes in Department of Agriculture regulations. Appendix B to Operating Circular No. 4 has been revised to reflect the redesignation of the Post Office Department as the United States Postal Service, in conformity with the Postal Reorganization Act of 1971. A dditional copies of this circular and its enclosures will be furnished upon request. A lfred H a y es, P resid en t. FEDERAL RESERVE BANK OF N EW YORK F irst Supplement to Operating Circular No. 4 (R evised effective Septem ber 2, 19 6 9 ) April 1, 1972 COLLECTION OF CASH ITEMS To the Member Banks and Nonmember Clearing Banks of the Second Federal Reserve D istrict, and Others Concerned: Operating Circular No. 4, Revised effective September 2, 1969, is amended as follows: (1) Paragraph 3(b) is amended to read as follows: (b) Government checks, postal money orders, food coupons, and food certificates.2 (2) Footnote 3 is amended to read as follows: 3For the purposes of this operating circular, the Virgin Islands and Puerto Rico shall be deemed to be in or of the Second Federal Reserve District; and Guam and American Samoa shall be deemed to be in or of the Twelfth Federal Reserve District. See Regulation J, note 1. (3) Paragraph 14 is amended to read as follows: 14. We reserve the right to require such separate sorts of cash items as we may deem appropriate; and we reserve the right to require both separate sorts and deposits in separate cash letters of Government checks, postal money orders, food coupons, and food certificates. Other instruc tions relative to sorting and listing of cash items are set forth in our time schedules. (4) The material in parentheses in paragraph 21 is amended to read as follows: (other than a Government check, postal money order, food coupon, or food certificate) (5) Paragraph 23 and its heading are amended to read as follows: Communications concerning cash items 23. All communications between this Bank and its member banks and nonmember clearing banks pertaining to payment, nonpayment or tracing of cash items or in connection with receiving or transmitting pertinent information or instructions with respect to cash items, will be sent over the Federal Reserve communications system or over commercial tele graphic wires or cables without charge to such member banks and non member clearing banks. A Federal Reserve Bank may, in its discretion, use the telephone in lieu of commercial wire or cable for any purpose indicated by this paragraph. A lfred H ayes , President. FEDERAL RESERVE BANK OF N E W YORK Second Supplement to Operating Circular No. 8 (R e v is e d e ffe c tiv e S e p te m b e r 1 , 19 6 7 ) April 1, 1972 COLLECTION OF NONCASH ITEMS To the Member Banks and Nonmember Clearing Banks of the Second Federal Reserve D istrict, and Others Concerned: Operating Circular No. 8, Revised effective September 1, 1967, is amended as follows : (1) Footnote 1 is amended to read as follows: 1F o r the purposes of this operating circular, the V irgin Islands and P uerto Rico shall be deemed to be in or of the Second F ederal Reserve D istrict; and Guam and A merican Samoa shall be deemed to be in or of the Tw elfth Federal Reserve D istrict. See Regulation J , note 1. (2) Subparagraph (c) of paragraph 5 is amended to read as fol lows: (c) The item is a Government check, postal money order (U nited States postal money order, U nited States international postal money order, dom estic-international postal money o rd er), food coupon, or food certificate; or A lfred H a yes , President. F e d e r a l r e se r v e OF NEW b a n k YORK F irst Supplement to Operating Circular No. 6 (September 1, 1967) April 1 ,1 9 7 2 INSTRUCTIONS TO COLLECTING BANKS AND PAYING BANKS To the Member and Nonmember Banks of the Second Federal Reserve D istrict, and Others Concerned: Footnote 1 of Operating Circular No. 6, dated September 1, 1967, is amended to read as follows: xF o r the purposes of this operating circular as well as fo r the p u r poses of Regulation J , the V irgin Islands and P uerto Rico shall be deemed to be in or of the Second F ederal Reserve D istrict; and Guam and A m erican Samoa shall be deemed to be in or of the Tw elfth F ederal Reserve D istrict. See Regulation J , note 1. A lfred H ayes , President. APPENDIX B Revised April 1,1972 (To Operating Circular No. 4) POSTAL M ONEY ORDERS 1. Postal money orders (United States postal money orders; United States international postal money orders; domestic-international postal money orders) will be handled by us as cash items in accordance with an agreement made by the Postmaster General, in behalf of the United States, and by the Federal Reserve Banks as depositaries and fiscal agents of the United States pursuant to authorization of the Secretary of the Treasury. With respect to matters not covered by that agree ment, the terms and conditions of Regulation J applicable to cash items, of this operating circular, and of our time schedules shall be applicable to all such postal money orders. 2. We will give immediate credit for postal money orders received from a sender maintaining or using an account with us as provided in our time schedules. Simultaneously with such credit, we will debit the amount of such money orders against the general account of the Treasurer of the United States under such symbol numbers as may be assigned by the Treasurer of the United States; and such credit to the account of the sender shall then become final as between us and the sender. 3. The agreement between the Postmaster General and the Federal Reserve Banks provides, in effect, that no claim for refund or other wise with respect to any postal money order debited against the gen eral account of the Treasurer of the United States and delivered to the representative of the United States Postal Service as provided in said agreement (other than a claim based upon the negligence of a Federal Reserve Bank) shall be made against or through any Federal Reserve Bank; that, if the United States Postal Service makes any such claim with respect to any such money order, such money order will not be returned or sent to a Federal Reserve Bank, but the United States Postal Service will deal directly with the bank or the party against which such claim is made; and that the Federal Reserve Banks will assist the United States Postal Service in asserting such claim, includ ing making their records and any relevant evidence in their possession available to the United States Postal Service. Section 210.12 of Regula tion J, relating to the return of cash items by the paying banks, is not applicable to postal money orders. APPENDIX C Revised April 1,1972 (To Operating Circular No. 4) FOOD COUPONS A N D C ERTIFICATES Food coupons 1. Food coupons will be handled by us as cash items in accordance with an agreement made by the Secretary of Agriculture, in behalf of the United States, and by the Federal Reserve Banks as depositaries and fiscal agents of the United States pursuant to authorization of the Secretary of the Treasury. With respect to matters not covered by such agreement, the terms and conditions of Regulation J applicable to cash items, of this operating circular, and of our time schedules shall be applicable to such coupons. We will receive food coupons only from member banks, nonmember clearing banks which maintain accounts with us, and nonmember banks which have arranged with us to send coupons to us for collection for credit to the account of a member bank on our books. All such banks sending coupons to t i s should follow the instructions set forth in an outline of procedures for commercial banks in handling such coupons under the current Food Stamp Program, prepared by the United States Department of Agri culture. 2. We will accept food coupons received by us in accordance with the following terms and conditions : (a) Redeemed food coupons should be forw arded to the office of this B ank m aintaining the reserve account or nonmember clearing account to which the proceeds of the coupons are to be credited. W e will give imm ediate credit fo r deposits of redeemed food coupons as provided in our time schedules. Such credit will not be final and will be subject to reclam ation and adjustm ent. (b) Food coupons should be separately sorted by denom ination and should be deposited in a separate cash letter. The sending b ank’s tra n s m ittal letter should be clearly stam ped or m arked “FO O D CO U PO N S.” The transm ittal letter should show the total num ber of, and the total am ount of, each denom ination of coupons enclosed. Food coupons should be forw arded to us by the means ordinarily used by the sender fo r checks and other cash item s; such shipm ents will be at the risk of the D ep a rt m ent of A griculture, only to the extent and under the conditions stated in 7 Code of F ederal Regulations, C hapter I I , Section 272.5(c). Sending banks should retain customers' deposit slips and any other p ertin en t records which would assist in substantiating reim bursem ent claims against the D epartm ent of A griculture fo r coupons lost in tran sit. (c) I n accordance w ith the regulations of the U nited S tates D ep a rt m ent of A griculture (7 Code of F ederal Regulations, C hapter I I ) , a portion of a food coupon consisting of less th an three fifths of a whole coupon shall not be accepted fo r redem ption. A ny coupon accepted fo r redem ption shall show on its back either (i) the A U TH O R IZA TIO N ’ N U M BER or (ii) the name of the authorized retail food store and, if involved, the authorized wholesale food concern. Each coupon shall also be cancelled by the first bank which receives it by indelibly m arking “P A ID ” or “ C A N C EL L E D ,” together with the name of the bank or its A.B.A. tran sit number, on the face of the coupon by means of an ap p ro p ria te stam p. No coupon should be endorsed by any bank. (d) A dditional inform ation concerning the collection of food coupons will be furnished by us upon request. 3. Nonmember banks which do not maintain accounts with this Bank and which have not arranged with ns to deposit food coupons for collection for credit to an account of a member bank on our books should forward redeemed food coupons through ordinary collection channels. Food certificates Pood certificates will be handled by us on the same basis as food coupons. Senders should consult 7 Code of Federal Regulations, Chapter II, Section 265.11(b) for information regarding the extent to which, and the conditions under which, the Department of Agricul ture assumes the risk of loss of certificates while in the course of shipment.
@FedFRASER