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FEDERAL RESERVE BANK
OF NEW YORK
C ircular No. 7475
I__
4
J
”1
O ctober 8, 1974
To A ll Member Banks, and Others Concerned,
in the Second Federal R eserve District:
W e h a v e b e e n n o t i f i e d b y the C o m p t r o l l e r of the C u r r e n c y
t h a t F r a n k l i n N a t i o n a l Bank, N e w York, N e w Y o r k
("Franklin") was
d e c l a r e d i n s o l v e n t as o f 3 p.m., O c t o b e r 8, 1974, and that the
F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n w a s a p p o i n t e d Receiver.
The
F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n as R e c e i v e r has c o n c l u d e d
an a g r e e m e n t w i t h E u r o p e a n - A m e r i c a n B a n k & T r u s t C o m p a n y p u r s u a n t
to w h i c h E u r o p e a n - A m e r i c a n B a n k & T r u s t C o m p a n y has a c q u i r e d c e r t a i n
F r a n k l i n a s sets and a s s u m e d c e r t a i n l i a b i l i t i e s of F r a nklin, i n c l u d i n g
all o f F r a n k l i n ' s d e p o s i t l i abi l i t i e s .
T h a t t r a n s a c t i o n has b e e n
a p p r o v e d by the a p p r o p r i a t e b a n k i n g and j u d i c i a l author i t i e s .
In
o r d e r to s e r v e the n e e d s of the c o m m u n i t i e s f o r m e r l y s e r v e d by
F r a n k l i n , we u n d e r s t a n d t h a t E u r o p e a n - A m e r i c a n B a n k & T r u s t C o m p a n y
w i l l o p e n the f o r m e r b r a n c h e s of F r a n k l i n as its b r a n c h e s tomorrow.
It is contemplated that European-American Bank & Trust
Company will not be able to issue new checks with its name to
Franklin's depositors for some time and that individuals dealing
with Franklin customers may not have learned of the insolvency of
(Over)
F r a n k l i n a n d the s u b s e q u e n t a c q u i s i t i o n b y E u r o p e a n - A m e r i c a n B a n k
& T r u s t Com p a n y .
A c c o r d i n g l y , w e h a v e b e e n r e q u e s t e d by E u r o p e a n -
A m e r i c a n B a n k & T r u s t C o m p a n y to c o n t i n u e to p r o c e s s t r a n s a c t i o n s
in the n a m e o f F r a n k l i n for the a c c o u n t of E u r o p e a n - A m e r i c a n B a n k
& T r u s t C o m p a n y as m o r e fully s e t forth below.
E u r o p e a n - A m e r i c a n B a n k & T r u s t C o m p a n y has r e q u e s t e d that
w e p r e s e n t to it all cas h a nd n o n c a s h i tems d e s i g n a t e d as p a y a b l e
by, at, or t h r o u g h F r a n k l i n , and w e w i l l give c r e d i t for suc h items
in a c c o r d a n c e w i t h R e g u l a t i o n J of the B o a r d of G o v e r n o r s of the
F e d e r a l R e s e r v e S y s t e m a n d o u r O p e r a t i n g Circu l a r s .
o f fun d s or U.S.
Wire transfers
G o v e r n m e n t a n d A g e n c y s e c u r i t i e s , w h i c h would,
b u t for its c l o s i n g , h a v e b e e n m a d e to F r a n k l i n s h o u l d be m a d e to
E u r o p e a n - A m e r i c a n B a n k & T r u s t C o m p a n y by i n s e r t i n g F r a n k l i n ' s nin e
d i g i t A B A n u m b e r a n d a l p h a b e t i c a l a b b r e v i a t i o n as follows:
”0 2 1 0 0 1 4 86 F K L N - E U R O N Y C / H .
Q u e s t i o n s r e g a r d i n g p r o c e d u r e s e s t a b l i s h e d in r e s p e c t of
m a t t e r s s e t f o r t h in this n o t i c e m a y be a d d r e s s e d to the a p p r o p r i a t e
o p e r a t i n g d e p a r t m e n t s of this Bank.
Al
fred
Ha
ye s
,
P r e s i d e n t.
@FedFRASER