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FEDERAL RESERVE B A *
OF MEW YORGC
[
Circular No. 9722 1
August 28, 1984
E E VISED IN IE E T E E E IT O E Y E E T U E N IT E M PE O C E B U E E S
To All Depository Institutions in the Second
Federal Reserve District, and Others Concerned:
As part of the Federal Reserve System’s program to reduce check float, each Reserve Bank
defers credit for interterritory return items for one day longer than for intraterritory return items.
For purposes of credit availability for items returned to our Head Office or Cranford, Jericho,
or Utica Office, this Bank has considered items being returned to senders located in the area served
by those offices to be intraterritory return items, and items being returned through those offices to
senders located in the area served by the Buffalo Branch to be interterritory. A review of our first
year’s experience with this arrangement reveals that approximately $5 million in daily average
return item float is still being generated from the current availability practice. In keeping with the
Federal Reserve’s efforts to reduce check float, we are implementing a change to eliminate this
return item float.
Starting October 1,1984, each area served by a Second District check processing office will be
considered a separate territory for return item credit availability purposes. To obtain the earliest
credit availability for items being returned to a sender located in the area served by the Head Office,
the Buffalo Branch, or the Jericho, Cranford, or Utica Office, a paying institution must sort the items
according to the office that serves that sender. Thus, a return item cash letter containing items for
senders served by all five offices would have to be sorted into five separate letters. The separately
sorted return items may be deposited directly at the office serving the sender, or may be deposited by
the applicable cut-off hour at any Second District office for transshipment. For example, an
institution in the Head Office territory returning an item to a depository institution served by the
Cranford Office (Routing Symbols 0212 and 2212) may deposit the return item by 10:00 p.m. at the
Head Office separately sorted for shipment to the Cranford Office for next-day credit availability,
subject to any delays in transportation.
The additional sorting by the paying institution will permit us to return these items faster and
will help depository institutions in making credit available to their depositors. Of course, you still
have the option of not sorting the return items and receiving credit availability one day later for all
your return items.
Enclosed is a copy of the Eighth Supplement to Operating Circular No. 4, which incorporates
the foregoing procedural change. Questions regarding these revised procedures may be directed to
your Account Manager (Tel. No. 212-791-6600), or to one of the following persons:
At our Head Office
John F. Sobala, Assistant Vice President (Tel. No. 212-791-5997).
At our Cranford Office
Fred A. Denesevich, Regional Manager (Tel. No. 201-272-9000).
At our Jericho Office
Anthony N. Sagliano, Regional Manager (Tel. No. 516-997-4500).
At our Utica Office
Harry Curth, Regional Manager (Tel. No. 315-736-8321).
At our Buffalo Branch
David P. Schwarzmueller, Operations Officer (Tel. No. 716-849-5018).
A
nthony
M.
Solom on,
President.
F e d e r a l R e s e r v e B amk
o f M e w Yo r k
Eighth Supplement to
Operating Circular No. 4
(Revised effective November 13, 1980)
Effective October 1, 1984
COLLECTION OF CASH ITEMS
Availability ff©r Returned Items
To All Depository Institutions in the Second
Federal Reserve District, and Others Concerned:
Operating Circular No. 4 has been amended as follows:
1.
Paragraph 8.4(b) of Appendix D, entitled “ Immediate Settlement
Agreement and Correspondent Authorization,” as amended by the Sixth Sup
plement to Operating Circular No. 4, is further amended to read as follows:
B. Immediate Settlement Agreement
* * *
4 * t f
(b.) Items returned to Head Office or to Cranford, Jericho, or Utica
Office. R eserve Bank gives credit on Reserve B ank’s next following
banking day for items in a cash letter containing only return items that have
been separately sorted for senders served by the receiving office, if the items
are received prior to 12:00 midnight of a banking day for Reserve Bank.
Reserve Bank also gives credit on Reserve Bank’s next following banking
day for items in cash letters containing only return items that have been
separately sorted for the Head Office, the Buffalo Branch, and the Cranford,
Jericho and Utica Offices, if the items are received on a banking day for
Reserve Bank prior to a cutoff hour for transshipment to the office that serves
the sender. Reserve Bank gives credit on Reserve B ank’s second banking
day following receipt for items in a cash letter containing any interterritory
return items or any intraterritory return items unsorted by office, if the items
are received prior to 12:00 midnight of a banking day for Reserve Bank.
Items in a cash letter containing any interterritory return items or any
intraterritory return items unsorted by office received at the Head Office on
Friday prior to 12:00 noon, however, are credited on Reserve B ank’s next
following banking day.
[Enc. Cir. No. 9722]
(OVER)
2.
The Paying Bank Agreement set forth in paragraphs 6(b) and (c) of
Appendix F. entitled ' ‘Manhattan, Bronx and Brooklyn (“ MB&B” ) Collec
tion Arrangement,” and paragraphs 6(b) and (c) of Appendix G, entitled
"Thrift Institution Collection Arrangement” ("TICA” ), as amended by the
Sixth Supplement to Operating Circular No. 4, are further amended to read as
follows:
(b) For items in a cash letter containing only return items that have
been separately sorted for senders served by the.Head Office, on the Reserve
B ank’s banking day next following the day Reserve Bank receives the return
items. For items in cash letters containing only return items that have been
separately sorted for the Buffalo Branch and the Cranford, Jericho and Utica
Offices (if the items are received on a banking day for Reserve Bank prior to
a cutoff hour for transshipment to the office that serves the sender), also on
the Reserve B ank’s banking day next following the day Reserve Bank
receives the return items.
(c) For items in a cash letter containing any interterritory return items
or any intraterritory return items unsorted by office, on the Reserve B ank’s
second banking day following the day Reserve Bank receives the return
items. Interterritory return items or intraterritory return items unsorted by
office received at the Head Office on Friday prior to 12:00 noon, however,
are credited on Reserve B ank’s next following banking day.
A nthony M . Solom on,
President.
@FedFRASER