The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FE D ER AL R E SE R V E BANK O F N E W YORK r Circular No. 7 2 7 8 ~i L November 28, 1973 J AMENDMENT TO REGULATION D Certain “ Other Liability” Accounts Included in Definition of “ Gross Demand Deposits” T o A ll M em ber Banks, and O thers Concerned, in the Second Federal R eserve D istrict: Our Circular No. 7230, which was sent to you 011 September 12, 1973, contained the text o f a proposed amendment to Regulation D, “ Reserves o f Member Banks,” o f the Board o f Governors o f the Federal Reserve System that would classify certain “ Other liability” accounts— accounts that a member bank has created to balance its books after debiting demand deposit accounts or any other accounts for the transfer of funds— as deposits against which reserves must be maintained. The Board o f Governors has adopted that amendment, effective November 26, 1973, for the reasons contained in our Circular No. 7230. Enclosed is a copy o f the amendment; additional copies will be furnished upon request. A lfred H a y e s , President. Board of Governors of the Federal Reserve System RESERVES OF MEMBER BANKS A M E N D M E N T T O R E G U L A T IO N D Effective November 26,1973, section204.1 (g) is amended to read as follows: SECTION 204.1— D EFIN ITIO N S * * * (g ) Gross demand deposits. The term “ gross demand deposits” means the sum of all demand deposits, including demand deposits to the credit of other banks, the United States, States, counties, school districts, and other gov ernmental subdivisions and municipalities, and all outstanding certified and officers’ checks (including checks issued by the bank in pay ment of dividends and checks or drafts drawn by or on behalf o f a foreign branch of a member bank on an account maintained by such a branch with a domestic office of the parent bank), and letters of credit and travelers’ checks sold for cash. “ Gross demand deposits” also includes any obligation to pay a check (or other instrument, device, or arrangement for the transfer of funds) drawn on the bank, where the account of the bank’s customer has already been debited. PRINTED IN N EW YORK
@FedFRASER