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FEDERAL RESERVE BANK OF NEW YORK [ Circular No. 8 8 3 2 May 19, 1980 1 CREDIT RESTRAINT PROGRAM Additional Questions and Answers—Eleventh Series To A ll M ember Banks, and Others Concerned, in the Second Federal Reserve D istrict: Printed below is the eleventh series of questions and answers, representing the views of the legal staffs of the Federal Reserve Bank of New York and of the Board of Governors of the Federal Reserve System, regarding the Credit Restraint Program. This series of questions and answers relates to the credit restraint program for short-term financial intermediaries (Subpart B of the Board’s regulation on Credit Restraint). Any questions concerning the Credit Restraint Program may be directed to the persons listed in our Circular No. 8794, dated April 9, 1980. A nthony M. S o l o m o n , President. Short Term Financial Intermediaries Subpart B B -15.0: Under Subpart B of the Board’s Credit Re straint regulation, special deposits for the week of May 19 to 25 would ordinarily be re turned to managed creditors on May 26 and at the same time deposits for the week of May 26 to June 1 would be received, or both would be accomplished by a net adjustment. Since May 26 is a holiday, when should deposits be returned and accepted, and should amounts held be altered to reflect the changed time periods ? A : Deposits for those weeks should be returned, accepted, or adjusted on Tuesday, May 27, 1980. The amount of the deposit should be altered to reflect the altered length of the hold ing periods as follows: (1) For the week of May 19 to 25 the de posit will be held for an extra day; therefore, the reported amount of de posit liability should be multiplied by seven eighths (7/8), or 0.875, to obtain the adjusted deposit. (2) For the week of May 26 to June 1 the deposit will be held for only six days; therefore, the reported amount of deposit liability should be multiplied by seven sixths (7/6), or 1.1667, to obtain the adjusted deposit. B-16. Q : If a managed creditor files an amended base report on the basis of question B-10 [contained in this Bank’s Circular No. 8819, dated May 6, 1980], should revised weekly reports be filed or deposit adjustments be made for previous weeks? A: No. However, adjustments due to other revi sions or corrections in the prior reports should be held in subsequent weeks.
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