Full text of Federal Reserve Bank of New York Circulars : Depositing of Coupons for Redemption or Collection

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FEDERAL RESERVE BANK
OF NEW YORK

September 30, 1983

Depositing of Coupons for Redemption or Collection
To All Depository Institutions in the
Second Federal Reserve District:

Beginning October 1,1983, all Treasury, Federal Agency, and international organization c o u ­
submitted for redemption or collection should be addressed to the R e d e m p tio n S e c tio n , G o v ­
e rn m en t B o n d D iv is io n , rather than the Coupon Division. O n ly c o r p o r a te a n d m u n ic ip a l co u p o n s
s h o u ld co n tin u e to b e a d d r e s s e d to th e C o u p o n D iv is io n . Under no circumstances should corporate
and municipal coupons be packaged in the same wrapper as Treasury, Agency, or international
organization coupons.

pons

In addition, we would like to remind you that this Bank’s Operating Circular N o. 6 requires that
all corporate and municipal coupons submitted to this Bank for collection be enclosed in a s e a le d
coupon collection envelope. Recently, some depositors have submitted unsealed coupon envelopes.
This practice increases your vulnerability to a loss of the contents of such envelopes, and unneces­
sarily increases the costs of processing such items. Also, this Bank accepts such items only on a
“ said to contain” basis, and assumes no responsibility for the accuracy of the amount appearing on
the envelope. For convenient reference, printed on the reverse side of this notice are the relevant
sections of Operating Circular No. 6 governing the deposit of corporate and municipal coupons.
Your cooperation in this matter is very much appreciated. Questions regarding corporate and
municipal coupons may be directed to Stephen J. Bematowicz, Chief, Coupon Division (Tel. No.
212-791-5081). Questions concerning U.S. Treasury, Federal Agency, or international organiza­
tion coupons may be directed to Francis Hennessy, Chief, Government Bond Division (Tel. No.
212-791-5359).




Jorge A . B rathwaite ,
V ice P re sid e n t.
(OVER)




Excerpt from Operating Circular No. 6

Coupons
17. A sender shall enclose coupons in a separate sealed window
envelope for each issue, series and maturity so that the face of a
coupon is visible. Envelopes should conform to our specifications. The
sender should list in the space provided on the envelopes (a) the
sender’s and its depositor’s names, (b) the sender’s collection number,
and (c) a brief description of the coupons enclosed, including the
number of coupons, denomination value, and total dollar value. A
sender should list and describe each envelope by collection number
on its totaled letter and enclose a completed standard deposit ticket
with each letter. Some registered mail insurance that Reserve Banks
obtain may be conditioned on verification of the contents of window
envelopes when the coupons are enclosed, and on the sender’s reten­
tion of a description of the coupons.
18. A sender shall separate coupon envelopes into the following
classes, with a totaled separate letter and a completed standard
deposit ticket for each class and, as to matured coupons, for each
maturity date:
(a) M a tu re d C ity C o u p o n C ash L e tte r — Due or past due
coupons payable and presented in New York City or Buffalo;
(b) U n m a tu re d C ity C o u p o n C ash L e tte r — Coupons due in
the future payable and presented in New York City or Buffalo;
(c) M a tu re d C o u n try C o u p o n C a sh L e tte r — Due or past
due coupons payable outside New York City or Buffalo; and
(d) U n m a tu red C o u n try C o u p o n C a sh L e tte r — Coupons
due in the future payable outside New York City or Buffalo.
In this classification, maturity is determined with reference to the
date of first receipt by a Reserve Bank. We give credit for coupons
in cash letters, subject to payment in actually and finally collected
funds, as provided in paragraph 25 of this circular.
19. We will return a coupon cash letter containing a mixture of
matured and unmatured coupons. If a coupon cash letter contains a
mixture of country and city coupons, we reserve the right either to
return it or to handle it as a country coupon cash letter. We will
charge to the sender’s account any postage, insurance, and other trans­
portation expenses that we incur in returning such a cash letter.
20. We handle coupons contained in sealed window envelopes
on a “said to contain” basis. We have no responsibility for verifying
that the envelopes actually contain the coupons listed and described
in the sender’s collection letter or on the envelopes.
21. Before sending a coupon to us, a sender should determine
whether an ownership certificate is required by law or by the issuer
to be attached to the coupon.