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FE D E R A L R E SE R V E BANK
O F N E W YORK
[
Circular No.
7882
May 26, 1976
]
Checks Drawn on Mutual Savings Banks and State-Chartered Savings and Loan Associations
in New York State to Be Handled as Cash Items
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EFective May 26, 1976, in New York State, mutual savings banks and State-chartered savings
and loan associations are authorized to offer demand deposit accounts to their customers. This
Bank will handle checks drawn on such institutions as cash items. This circular and our Operat
ing Circulars Nos. 4, 5, 6, and 7 provide information relative to the terms and conditions under
which we will handle such items.
Checks drawn on such institutions may be deposited for collection at all offices of this Bank
by Second District member banks, other Federal Reserve offices, and direct-sending member banks
in accordance with our operating circulars. Such items may also be deposited at this Bank's
Regional Check Processing Centers ("RCPCs") at our Jericho Office and Buffalo Branch by non
member participating banks with the concurrence of this Bank; however, nonmember participants
may deposit only cash items drawn on financial depository institutions located in the area served
by the RCPC in which the depositing nonmember bank is located.
Checks issued under the new authorization will be identified by a special Routing Number.
The routing symbol portion of such number will be—2213 for such institutions located within the
34 counties in upstate New York served by the Head Office of this Bank; 2214 for Long Island
(Nassau and Suffolk Counties); 2219 for the seven counties (Westchester, Rockland, Orange,
Putnam, Dutchess, Ulster and Sullivan) immediately north of New York City; 2220 for the city
of Buffalo; 2223 for the 14 counties (except the city of Buffalo) served by this Bank's Buffalo
Branch; and 2260 for the five counties in New York City.
In keeping with current operating policies, this Bank will make direct presentment of cash
items to all drawee institutions or their designated processing center or correspondent bank. How
ever, in furtherance of the policy of the Federal Reserve System to reduce the number of end
points in the payments system and to reduce the number of shipments to each endpoint, this Bank
urges commercial banks and savings institutions, if they have not already done so, to make
arrangements to accept the presentment of their cash items at processing centers serving two or
more financial depository institutions. When this Bank presents, to a particular processing center
or other institution for processing, items drawn on two or more financial depository institutions
served by the same office of this Bank, all such items will, as our capability permits, be commin
gled in one cash letter. Presentment of cash items to mutual savings banks and savings and loan
associations located outside New York City and Buffalo will be made by courier service or by
mail. Upon request, such cash items will be available for pickup at any office of this Bank.
Agreements must be executed by mutual savings banks and savings and loan associations
whose items will flow through the check collection system of the Federal Reserve Banks. One
'OVER)
agreem ent must be executed with this Bank and a member bank selected by the savings institution,
to permit us to charge the member bank's reserve account on our books to pay for such institu
tion's cash letter. A nother agreem ent will be necessary if such institution wishes to have its
cash letter delivered or made available to a processor or at a location other than the institution
on which the items are draw n. These agreem ent form s will be mailed to the affected savings institions within the next few days. Executed agreem ents should be returned to Leonard 1. Bennetts
at our H ead Office, Joseph M. O'Connell at our Jericho Office, or Robert J. McDonnell at our
Buffalo Branch.
If you have questions relating to the above, you may contact any of the following officers:
James O. Aston, Assistant Vice President (Tel. No. 212-791-6334)
Leonard 1. Bennetts, Manager, Check Adjustment and Return Items Department (Tel. No. 212-791-5292)
John C. Houhoulis, Manager, Payment Systems Department (Tel. No. 212-791-5997)
John F. Sobala, Manager, Check Processing Department (Tel. No. 212-791-5321)
B tiy a /c F ra M f/i
Peter D. Luce, Cashier (Tel. No. 716-849-5013)
Robert J. McDonnell, Assistant Cashier (Tel. No. 716-849-5022)
A r/rA o
Joseph M. O'Connell, Assistant Vice President (Tel. No. 516-997-4500)
O ur operating circulars are being amended to refect the changes announced in this circular;
copies of the amended operating circulars will be sent to you as soon as they become available.
Additional copies of this circular will be furnished upon request.
PAUL
A.
VoLCKER,
@FedFRASER