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FED ER AL RESERVE BANK O F NEW YORK r Circular No. 7 6 3 6 "1 L May 21, 1975 J Memorandum on Exchange Charges To the Member Banks of the Second Federal Reserve District, and Others Concerned: Effective September 1, 1974, the Board of Governors of the Federal Reserve System amended Regulation J, “Collection of Checks and O ther Items by Federal Reserve B anks,” to reflect the publication by the Board of a M emorandum on Exchange Charges, replacing the “Federal Reserve P ar L ist.” In subm itting the amendment for publication in the Fed eral Register the Board made the following statem ent: The Federal Reserve Banks are prohibited from paying exchange charges by virtue of § 13 of the Federal Reserve Act, 12 U.S.C. 342, and cannot collect checks on banks demanding exchange charges. The Board of Governors has published a “ P ar L ist” for many years which lists cities in which checks will be cleared without the exaction of exchange charges. The list has become long and cumbersome, how ever, and the Board believes that a “ Memorandum on Exchange Charges,” which lists the banks at which exchange charges are made, would be a desirable alternative to the P ar List. The Board is, there fore, amending Regulation J to reflect the new publication. Enclosed is a copy of the amendment to Regulation J. Also enclosed is a copy of the Second Supplement to our O perating Circular No. 4, “Collection of Cash Item s,” Revised effective July 1, 1974, which implements the amendment to Regulation J. Copies of the M em o randum have already been sent to regular receivers of the P a r List. Any questions regarding this m atter may be directed to Joseph M. O ’Connell, M anager, Check Processing D epartm ent (Telephone No. 212— 791-5321), or John M. Eighmy, Chief, Check Processing Division (Telephone No. 212— 791-5319). Additional copies of the enclo sures will be furnished upon request. A lfred H ayes, President. FEDERAL RESERVE BANK OF N E W Y O R K Secon d S u p p lem e n t to O perating: C irc u la r N o. 4 (Revised effective July 1, 1974) M ay 31. 1975 COLLECTION OF CASH ITEMS To the Member Banks of the Second Federal Reserve District, and Others Concerned: Operating Circular No. 4, revised effective July 1, 1974, is amended as follows: 1. Paragraph 3 has been amended to read as follows: 3. E xcept as otherwise provided by this operating circular, the follow ing items may be sent to this Bank for handling as cash items in accordance with and subject to the provisions of Regulation J, of this operating circular, and of our time schedu les: (a ) Checks, except checks drawn upon any bank included in the cur rent “Memorandum on E xchange Charges” published by the Board of Gov ernors, which indicates the banks that would make exchange charges on checks presented, sent or forwarded by Federal Reserve Banks and con sequently would not be paying their checks at par. 2. Paragraph 17 is amended to read as follow s: 17. A s contemplated by Section 210.7 of Regulation J, any cash item may be presented for payment by a Federal Reserve Bank or a subsequent collecting bank, may be sent by a Federal Reserve Bank or a subsequent collecting bank for presentment and payment, or may be forwarded by a Federal Reserve Bank to a subsequent collecting bank with authority to present it for payment or to send it for presentment and payment. H owever, this Bank and the other Federal Reserve Banks reserve the right to return without presentment any cash item payable by or through a bank which is designated in the “Memorandum on Exchange Charges” published by the Board of Governors or may have been reported closed. A lfred H ayes, President. ( E n c . C i r . N o. 76 36] Board of Governors of the Federal Reserve System COLLECTION OF CHECKS AND OTHER ITEMS BY FEDERAL RESERVE BANKS A M E N D M E N T TO R E G U L A TIO N J Effective September 1, 1974, footnote 2 in section 210.2 has been amended as follows: 2 The Board of Governors publishes from time to time a “Memorandum on E xchange Charges” which indicates the banks that would make exchange charges on cash items forwarded by Federal Reserve Banks and consequently would not be paying their checks at par. [ E n c . C ir . N o. 7 6 3 6 ] P R I N T E D I N N E W YORK
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