The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FED ER A L RESERVE BANK OF NEW YORK Circular No. 8339 I May 8, 1978 t FOOD COUPONS Handling of Redemption Certificates by Receiving Banks To All Banks, and Others Concerned, in the Second Federal Reserve District: The Food and Nutrition Service, U.S. Department of Agriculture, has issued the following ruling re garding the handling of food stamp redemption certificates; [3410-30] SUBCHAPTER C— FOOD STAMP PROGRAM [Arndt. No. 1301 PART 272—PARTICIPATION OF RETAIL FOOD STORES, WHOLESALE FOOD CONCERNS, MEAL SERVICES AND BANKS Redemption Certificates by Receiving Banks AGENCY: Food and Nutrition Service, USDA. ACTION: Final rule. SUMMARY: This rule eliminates the use of food stamp redemption certifi cates as part of the documentation that commercial banks submit to sub stantiate claims for coupons lost in transit and establishes a time frame ror the disposition of redemption certi ficates by receiving banks. The amend ment is necessary because the values shown on the redemption certificates seldom equal the amount of a lost in transit claim. Also, this rule strength ens the remaining documentation that commercial banks submit by requiring an affidavit by the claimant. EFFECTIVE DATE: March 10, 1978. FOR FURTHER INFORMATION CONTACT: Wayne A. Simmons, Administrative Cost and Analysis Branch, Food Stamp Division, Food and Nutrition Service, U.S. Department of Agricul ture, Washington, D.C. 20250, 202447-8266. SUPPLEMENTARY INFORMATION: In recent years, the Federal Reserve Banks have established a procedure which requires depositing banks to submit redeemed coupons in bundles of 100 of each denomination for pay ment. Banks, in accumulating coupons for these bundles, usually include cou pons received from more than one re tailer. Current regulations instruct the re ceiving banks to hold redemption cer tificates until payment is received from the Federal Reserve. If a lost in transit claim needs to be submitted, the redemption certificates associated with the loss are to be presented as substantiation of the claim. However, due to the bundling requirements the value of the redemption certificates seldom agrees with the amount of the claim. Thus, the redemption certifi cates are of questionable use in deter mining the validity and amount of the claim. The proposed rule change was pub lished in the F ederal R egister of No vember 4, 1977. Comments requested by the proposed rulemaking have been considered and incorporated into the final rule. Accordingly, § 272.5 of Chapter II, Title 7, Code of Federal Regulation, is amended as follows: In § 272.5, the sixth sentence of paragraph (a) is amended; paragraph (c)(3)(ii) is amended; paragraph (c)(3)(iv) is deleted and paragraph (c)(3)(v) is revised and redesignated paragraph (c)(3)(iv). The amended provisions read as follows: mulation, but not less frequently than weekly to the following address: Minneapolis ADP Field Center, Food and Nutrition Service, USDA, 3930 West- 65th Street, Minneapolis, Minn. 55435. * * * * • (c) * * * (3) * * * (ii) An affidavit of facts concerning the loss and the banks’ procedures for making the shipment. This affidavit shall specify that either all or part of the loss cannot be recovered from the carrier. If a partial recovery has been or will be made, the amount shall be stated. In the event of a partial loss, this affidavit shall specify the condi tion of the package upon receipt and state whether it appeared to have been tampered with or damaged in transit. * * • * * (iv) FNS will obtain copies of the re demption certificates corresponding to claims. * • • * • (78 Stat. 703, as amended; (7 U.S.C. 20112026).) N ote .—The Food and Nutrition Service has determined that this document does not contain a major proposal requiring the preparation of an Economic Impact State ment under Executive Order 11821 and OMB Circular A-107. (Catalog of Federal Domestic Assistance Programs No. 10.551, Food Stamps) Dated: March 2, 1978. § 272.5 Participation of banks. (a) * • • Redemption certificates ac cepted by receiving banks shall be for warded daily, or upon reasonable accu Carol T ucker F oreman, Assistant Secretary. [FR Doc. 78-6372 Filed 3-9-78; 8:45 am] If you have any questions concerning this matter, please c l , at our Head Office, John C. Houhoulis, al Manager, Collection Department (Telephone No. 212-791-5079), or Charles J Mineer, Chief, Collection . Division (Telephone No. 212-791-5081), or at our Buffalo Branch, Harry A. Curth, J . Operations Officer r, (Telephone No. 716-849-5018). P A U L A. V O L C K E R , President.
@FedFRASER