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FEDERAL RESERVE BANK
OF NEW YORK
November 13, 1978
E M E R G E N C Y PR EPARED N ESS
To fA
g
O^c e
Enclosed are revisions of this Bank's Emergency Planning Circulars, which contain plans
for the continuation of our essential operations in the event of a national emergency.
The circulars have been revised principally (a) to eliminate provisions for the shipment of
currency by Railway Express during an emergency; (b) to update the lists of "cash agent" and
"check agent" banks under the program; and (c) to reflect the present address of this Bank's
Relocation Office.
It is suggested that, after being reviewed by the appropriate members of your staff, these
circulars be kept available for ready reference. Any questions regarding this program, and
requests for additional copies of the Emergency Planning Circulars, should be directed to Louis
J. Conroy, Manager of our Records Management and Emergency Planning Department
(Telephone No. 212-791-5355).
PAUL A. VOLCKER.
P r e s id e d .
NOT FOR PUBLICATION (For internal use only)
FEDERAL RESERVE BANK
OF NEW
YORK
Emergency Planning
Circular No. 1
Revised November 1, 1 9 7 8
Program for the Distribution of Currency
in an Emergency
To
Oj^ces iw
Second Federal .Reserve District
Outside TVew Tort: City, awd Dead Oj%ees o/ -dH DaM^s
i% Dew YorA City;
The preparedness programs of the Federal Reserve Banks for carrying on essential opera
tions in the event of an emergency include a plan for decentralizing the supplying of currency
to banks. Under the plan, certain commercial banks will act as agents of the Federal Reserve
Banks in distributing currency to banks in their respective Federal Reserve districts.
This circular sets forth this Bank's plan for distributing currency during an emergency
in the Second Federal Reserve District and contains the terms and conditions under which
shipments of currency to and from member and nonmember banks in this District for account
of this Bank will be handled. Under its plan, the Bank has divided the Second Federal Reserve
District, exclusive of New York City, into 17 areas and has designated a commercial bank in
each area to act as its agent to handle the distribution of currency among banking oRices in the
area. Accompanying this circular is an Appendix, which lists the names and locations of such
banks, hereinafter referred to as "Cash Agent banks," and the counties comprising the area
each will serve. Bookkeeping entries incident to shipments of currency to and from Cash Agent
banks will be centralized on this Bank's books at its Relocation Office, located at Amherst,
Massachusetts; this Bank will not, during an emergency, physically handle paper currency or
coin at its Relocation O ice.
R
The term "banks" includes, for the purposes of this circular, commercial banks, indus
trial banks, savings banks, and private bankers. The term "banking oRices" includes all oRices,
including branches, head oRices, and emergency oRices of banks.
It has been considered desirable not to designate Cash Agent banks in the larger industrial
cities. Should banks in such cities require currency during an emergency, additional Cash
Agent banks may be appointed or other means will be employed to meet their needs.
Disposition of paper currency and coin in possession of
armored carriers at the time of an attack
1.
In the event of an enemy attack occurring prior to the activation of this Bank's plan
for distribution of currency in an emergency, arrangements have been made with armored
carriers transporting shipments of paper currency and coin to, from, or for the account of this
Bank pursuant to contracts with this Bank for the disposition of such shipments in transit at
the time of an attack. Pursuant to such arrangements, the carriers will deliver such paper
currency and coin to the Erst operable and accessible commercial bank, in the following order,
that will accept such paper currency and coin:
(a )
The original consignee h an k;
(b ) A n operable and accessible branch o f the original consignee ba n k ;
(c) A n y other commercial bank or branch as instructed by this B a n k ;
(d )
This B a n k 's closest operable and accessible Cash A g e n t ban k;
(e )
The most accessible and operable commercial bank or branch.
Member banks that have contracts with armored carriers for the shipment of paper currency
and coin to and from this Bank may wish to make similar arrangements with such armored
carriers.
2. This Bank hereby authorizes any commercial bank (other than the original consignee
bank or a branch thereof) to which a shipment of paper currency and coin is delivered under
the circumstances set forth in paragraph 1 (including a shipment transported by an armored
carrier pursuant to a contract between the member bank and the armored carrier and delivered
pursuant to the instructions of the member bank) to receive and hold such shipments in custody
as this Bank's agent, and this Bank will reimburse any such commercial bank for all expenses
properly incurred by it as such agent and will indemnify it against all losses of such paper
currency and coin except loss due to the agent's failure to maintain its customary security
measures in the protection of the paper currency and coin insofar as possible under the condi
tions then existing.
Activation of plan
3. The Bank's emergency plan for distributing currency in an emergency becomes effective
upon issuance of notice of activation by this Bank. If not otherwise informed of the activation
of the emergency plan, each banking office should request instructions from the Cash Agent
bank designated to serve its area.
General terms and conditions
4. Cash Agent banks will have no coin to distribute and coin should not be deposited
with them. Banks in need of coin and banks having excess stocks of coin should so advise their
Cash Agent banks.
5. Orders for paper currency will be accepted by a Cash Agent bank from banking offices
located in its area. Such orders may be placed over the counter, or by telephone, telegraph, or
letter. Telephone and telegraph orders should be continued by letter. Cash Agent banks will
be responsible for the equitable distribution of currency to banking offices in their areas.
6. Each Cash Agent bank will also receive currency deposits from banking offices in its
area. Such offices, using this Bank's Form Mon. 82, may make deposits over the counter, or by
registered mail, armored car, or whatever other means may be selected or approved by their
Cash Agent bank.
7. All banks are urged to make direct exchanges of paper currency and coin among them
selves in order to avoid, to the extent possible, requisitioning currency from Cash Agent banks.
2
8. Paper currency should continue to circulate until it is worn out or mutilated, when it
should be sent to Cash Agent banks. Shipments of paper currency to Cash Agent banks should
not include securities or other valuables and should be prepared, arranged, and shipped, insofar
as circumstances permit, in accordance with the provisions of this Bank's then currently effec
tive Operating Circular No. 3. Depositing banks should also send to Cash Agent banks all
large size currency and gold certificates.
9. Canadian currency and coin should not be deposited with Cash Agent banks because
those banks will not be prepared to convert such cash into United States funds.
10. All requests for paper currency should be made to the Cash Agent bank serving the
requesting banking ofhce. Credits for paper currency deposited with a Cash Agent bank and
charges for paper currency shipped by a Cash Agent bank will be made on the books of this
Bank on the day the Relocation O ce receives from the Cash Agent bank the credit and debit
f&
tickets relating to such transactions.
11. This Bank will absorb the cost of postage and other shipping charges incident to ship
ments of paper currency as to which this Bank assumes the risk of loss as hereinafter provided.
12. The amount of paper currency shipped by a Cash Agent bank to a member bank will
be charged to the member bank's reserve account, and the amount of paper currency deposited
with a Cash Agent bank by a member bank will be credited to the member bank's reserve
account. Payment for a shipment of paper currency to a nonmember bank should take the
form of an authorization to charge a nonmember clearing account or another account on the
books of this Bank pursuant to appropriate arrangements made with this Bank, or of a
draft drawn on a member bank. Deposits of paper currency will be accepted from nonmember
banks for credit to nonmember clearing accounts or to other accounts on the books of this
Bank pursuant to appropriate arrangements made with this Bank.
Risk of loss
Certain rtsks assumed &y tMs Bank
13.
Except as provided in paragraph 14 hereof, the Federal Reserve Bank of New York
will assume:
(a ) A l l risks o f loss incident to the shipm ent of paper currency to, from , or for the account of
this Bank or any Cash A g e n t bank (i) by registered mail, and (ii) by such other means of transporta
tion as m ay be selected or approved by this B an k or its Cash A g e n t bank, from the time such sh ip
ments leave the office of the sending bank until delivered at the office of the addressee b a n k ; and
(b ) Such risks hereby assumed shall include, but shall not be lim ited to, any loss resulting from
hostile or warlike action by any m ilitary, naval, or air forces, or agents of domestic, foreign, or revolu
tionary governments, powers, or forces, whether or not war has been form erly declared and including
defending against an actual or expected attack, and any loss caused by a n y weapon of war em ploying
atomic fission or radioactive force.
3
Certain ris/cs not assumed by t/tis Ban/c
14.
This Bank will not assume any risk of loss in any of the following circumstances,
and any loss thereunder is agreed and understood to be assumed by the bank making or
causing or ordering a shipment of paper currency to, from, or for the account of this Bank
or any Cash Agent bank:
(a ) A n y loss in excess o f $ 2 ,000,000 on all shipments by any one banking office to this Bank and
to its Cash A g e n t banks on any one day.
(b ) A n y loss resulting fro m any dishonest, fraudulent, or criminal act of an employee o f any
bank, other than this B ank or its Cash A g e n t banks, making, causing, ordering, or receiving the
shipment.
(c ) A n y loss to the extent recoverable from any insurance, surety, or indem nity company pursu
ant to purchased insurance, surety, or indem nity (including Bankers Blanket B o n d ), whether prim ary
or excess, carried by or m aintained b y any person other than this Bank or its Cash A g e n t banks.
(d )
A n y loss on any shipm ent by any bank, other than a Federal Reserve B ank or a Cash A gen t
bank, not made in conform ity with the provisions of this circular.
(e ) A n y loss in respect of a shipm ent by or for the account of this Bank or its Cash A ge n t banks
by registered mail if the receiving bank takes delivery of the shipment at any place other
than its
office, unless the shipment shall be in charge of a responsible person or in the custody of an armored
car service in transit from the place at which delivery is taken to the office of the receiving bank.
Preparation of shipments
15. Any bank making or causing shipments of paper currency to or for the account of
this Bank or any Cash Agent bank shall comply with the following terms and conditions:
(a )
Contemporaneously with the shipment, but under separate cover, the sender shall mail to the
Cash A g e n t bank in its area a notice of shipment showing the date, amount, and description of the ship
ment, such notice to be on this B a n k 's F o rm Mon. 82.
(b )
The contents of the shipm ent shall be prepared and verified by one or more responsible
employees of the sender and enclosed in a strong wrapper, envelope, or cloth or canvas bag, well secured,
and the package shall be sealed in a manner acceptable to the post office or other approved agency of
transportation at the place o f m ailing or dispatch.
(e )
deposited
The sealed package shall be in charge of a responsible person or an armored car service until
and
registered at the post office or delivered fo r shipm ent by means of transportation
selected or approved by this B ank or any Cash A ge n t bank.
(d )
The post office registry receipt fo r each shipment by registered mail shall be preserved by the
sender in order that it w ill be available as evidence in event of lo ss; and in the event a loss is claimed,
the receipt shall be delivered to this Bank at its request.
Revision of this circular
16. The right is reserved to withdraw, add to, or amend at any time, any of the provisions
of this circular.
Effect of this circular upon previous circular
17. This circular supersedes our Emergency Planning Circular No. 1, Revised June 7, 1963.
PAUL A. VOLCKER,
4
APPENDIX
List of Cash Agent Banks With Area Each Will Serve
Area
Name awd Locah'ow a/ Apewt .B A:
aw
Area Served
1 Bankers Trust Company
Patchogue, N. Y. 11772
Nassau, Suffolk
2 Bankers Trust Company of Hudson
Valley, National Association
Poughkeepsie, N. Y. 12602
3 Midlantic National Bank/Cranbury
Cranbury, N. J. 08512
N. Y .: Dutchess, Putnam, Westchester
Conn.: Fairheld
4 First National Bank of Central Jersey
Somerville, N. J. 08876
Hunterdon, Somerset, Union, Warren
5 National Community Bank of New Jersey
Franklin, N. J. 07416
Essex, Hudson, Morris, Sussex
6 Orange County Trust Company
Middletown, N. Y. 10940
N. J.: Bergen, Passaic
N. Y .: Orange, Rockland
7 The First National Bank of Glens Falls
Hudson Falls, N. Y. 12839
Columbia, Rensselaer, Washington
8 Bankers Trust Co. of Hudson Valley, N.A.
Kingston, N. Y. 12401
Albany, Greene, Schoharie, Ulster
9 National Commercial Bank and Trust
Company
Onconta, N. Y .13820
Delaware, Otsego, Sullivan
Middlesex, Monmouth
10 First National Bank and Trust Company
of Ithaca
Ithaca, N. Y. 14850
Broome, Chemung, Schuyler, Seneca,
Tioga, Tompkins
11 First National Bank of Cortland
Cortland, N. Y. 13045
Cayuga, Chenango, Cortland, Madison,
Onondaga
12 The National Bank of Northern New York
Watertown, N. Y. 13601
13 Central National Bank, Canajoharie
Canajoharie, N. Y. 13317
14 Marine Midland Bank
Saranac Lake, N. Y. 12983
Herkimer, Jefferson, Lewis, Oneida,
Oswego
B-l
Fulton, Hamilton, Montgomery,
Saratoga, Schenectady, Warren
Clinton, Essex, Franklin, St. Lawrence
Liberty National Bank and Trust Company
Batavia, N. Y. 14020
B-2
Marine Midland Bank
Jamestown, N. Y. 14701
B-3 The Bath National Bank
Bath, N. Y. 14810
Allegany, Cattaraugus, Chautauqua
Livingston, Monroe, Ontario, Steuben,
Wayne, Yates
5
Eric, Gcnesse, Niagara, Orleans,
Wyoming
NOT FOR PUBLICATION (For internal use only)
FEDERAL RESERVE BANK
OF NEW YORK
Emergency Planning
Circular No. 2
Revised November 1, 19 78
Program for the Collection of Cash Items
in an Emergency
To
RanAawy
tn tRe Second Federal .Reserve Dtsirict Outside Few Yor& City,
and .Head Oj^ices o/ .dti HanA;s in Few VorA; City*
The preparedness programs of the Federal Reserve Banks for carrying on essential
operations in the event of an emergency include plans for decentralizing the collection of
checks and other cash items. Under the plans, designated commercial banks will act as agents
of the Federal Reserve Banks in collecting cash items in an emergency.
This circular sets forth this Bank's plan for emergency clearing and collection of cash
items in the Second Federal Reserve District and contains operating instructions for banks
in the District that participate in the plan. The essence of the plan is decentralization of
collections among banks and centralization of settlements by bookkeeping entries on this
Bank's books. The decentralization is effected by dividing the Second Federal Reserve Dis
trict, excluding New York City, into 25 areas, in each of which a commercial bank will act
as this Bank's agent for the collection of cash items.
The term "banks" includes, for the purposes of this circular, commercial banks, indus
trial banks, savings banks, and private bankers. The term "banking offices" includes all ofhces,
including branches, head ofhces, and emergency ofhces of banks.
DESCRIPTION OF EMERGENCY PLAN
Assumptions
1.
The plan for emergency clearing and collection of cash items involves the following
assumptions:
(a )
The
regular ofhces of most F ederal
m em ber banks w ill be out o f operation.
Reserve Banks and of most large member and non-
( A l l F ed eral Reserve Banks have completed plans fo r carry
ing on operations at relocation offices; this Bank's Relocation Office wil? be located at Amherst,
M assachusetts.)
(b ) P lans w ill have been developed by member
and
nonmember
banks
to
continue
essential
functions at emergency ofRces in the event they cannot continue to operate at their regular ofEces.
(c )
The N orthern N ew Jersey C learing H ouse Association, the Buffalo Clearing House A ssocia
tion, and the M anhattan, B ron x and Brooklyn Collection A rrangem ent will not be in o p eration ; how
ever, other existing local clearing arrangements will continue to function in an emergency, to the fu ll
est extent possible.
(d )
The New Y o rk Clearing House Association will operate from an alternate location, except
that no plans have been completed for the operation o f its C ity Collection D epartm ent.
Participation in plan
2. During an emergency, the following banks may participate in the plan described in
this circular:
(a ) member banks,
(b )
each other nonmember bank that makes advance arrangements, to be effective in an emer
gency, (i) pursuant to which entries arising out of its participation in the plan m ay be made in the
account of another bank that has an account with this Bank, or (ii) fo r the opening o f a clearing
account.
Mem ber and nonmember banks that participate in the plan are referred to hereinafter as
' ' participating b an ks.' '
Emergency clearing groups
D ivision o / District
3. The Second Federal Reserve District, except New York City, has been divided by
counties into 25 areas. In each area, all banking offices of participating banks will constitute
an "emergency clearing group." In each emergency clearing group, one participating com
mercial bank will serve as this Bank's collecting agent for the banking offices in that group.
Such agent banks are hereinafter referred to as "Check Agent banks." (Under the plan,
therefore, each such bank will act in two different capacities: as a participating bank in its
own right, and as an agent of this Bank.) Each Check Agent bank will endeavor to guide and
assist all banking offices in its emergency clearing group with problems encountered in carrying
out the plan either prior to or during an emergency. The names of the Check Agent banks in
this District and the counties comprising the areas they will serve are listed in the Appendix to
this circular.
E m erg e n cy cZeartng g rou p s in target areas
4. Of the 25 emergency clearing groups located in the Second Federal Reserve District,
12 are served by Check Agent banks located in possible target areas; therefore, alternate
Check Agent banks have been designated for those areas in the event the regularly desig
nated Check Agent banks become inoperable. When any participating bank establishes an
emergency office, that office, if operating, will be served by the Check Agent bank for the area
in which it is located. Banks now in the same city clearing arrangement or other local clearing
arrangement should locate their emergency offices near each other to permit continued local
clearing operations during the emergency.
Activation of plan
5. The emergency plan becomes effective upon issuance of notice of activation by this
Bank. This Bank will also undertake, as soon as it is practicable after the happening of the
emergency, to inform banks in the Second Federal Reserve District as to those Federal
Reserve Banks and Branches that are still operating from their regular offices and those
that are operating from their relocation offices, giving the addresses of the latter. If not other
wise informed of the activation of the emergency plan, each banking office should request
instructions from the Check Agent bank designated to serve its emergency clearing group.
T E R M S O F C O L L E C T IO N A N D T I M E S C H E D U L E
Terms of collection
6. Upon the activation of this Bank's emergency plan, each bank that has agreed to
become a participating bank, and any bank sending cash items for deposit or collection to
this Bank, to any Check Agent bank or participating bank in the Second Federal Reserve
District, or direct to another Federal Reserve Bank, shall by such action be deemed:
(a ) to have agreed to the terms and conditions o f :
(i) Regulation J and other regulations of the B oard of Governors of the Federal Reserve
System relating to the clearing and collection of checks and other cash items in an emergency, and
(ii)
Operating Circular No. 4 o f this B an k as modified b y this circular,
as such regulations and circulars m ay from time to time be amended or supplemented,
(b ) to have authorized this B ank or such Check A g e n t bank or such participating bank or other
Federal Reserve B ank to defer or cause to be deferred fo r such period or periods as in its discretion
m ay seem desirable, the presentment or the forw arding fo r collection of those items the collection of
which is deemed in good faith by it to be impracticable at the time,
(c) to have authorized this B ank to credit on its books the account o f the sending bank or the
account of another bank with which the sending bank has made appropriate arrangem ents, on receipt
of cash letters at this B ank or on advice from Check A g e n t banks, with the dollar amount o f cash
letters sent by such sending bank to this Bank, to any Check A g e n t bank or participating bank in the
Second Federal Reserve D istrict, or direct to another F ederal Reserve B ank, and
(d ) to have authorized this B ank to debit on its books the account of the agreeing or sending
bank or the account of another bank with which such bank has made appropriate arrangements, on
receipt o f advice fro m Check A g e n t banks, with the dollar amount of cash letters sent to such agree
ing or sending bank by other participating banks, b y any Check A g e n t bank, or by any Federal
Reserve Bank.
Time schedule
7.
Credit will be given for all cash items sent for collection (i) on the day of receipt of the
items at the Relocation O
ffice of this Bank, or (ii) on the day of receipt at the Relocation
O
ffice of advices from Check Agent banks reporting sendings of participating banks. Accord
ingly, the time schedules set forth in Appendix No. 1 to Operating Circular No. 5 (New York
Head Othce Time Schedule), and separate time schedules addressed to direct-sending banks
will not be in effect. This Bank shall not be obligated to make any debits to the account of a
drawee bank to which cash items drawn on it are sent or to the account of a bank with which
the drawee bank has made appropriate arrangements, or to make any corresponding credits
for the account of a sending bank, in the event the account of the drawee bank, or the account
of a bank with which the drawee bank has made appropriate arrangements, does not contain
a credit balance in an amount deemed by this Bank to be sufficient.
O P E R A T I N G IN S T R U C T IO N S U N D E R E M E R G E N C Y P L A N
Use of established clearing arrangements
8.
Participating banks now sending cash letters through established clearing arrange
ments should continue to do so during an emergency, and advise the Check Agent bank in
their emergency clearing group of sendings through
arrangements only. (Sendings
through city arrangements will be reported to Check Agent banks by those operating city
arrangements.) Upon the happening of an emergency, forms to be used for advices of send
ings through county clearing arrangements will be furnished by the Check Agent bank in the
sending bank's emergency clearing group. The Check Agent bank will arrange for entries
on this Bank's books reflecting such sendings. In the event that a clearing arrangement is not
operative, such cash items should be presented as hereinafter provided.
3
Instructions to sending banks located in undamaged areas
CasA items normally sent to a correspondent Aank
9. A participating bank located in an undamaged area that normally sends cash items to
a correspondent bank for collection should continue to do so (to the correspondent's regular
or emergency office), except that cash items drawn on participating banks in the same emer
gency clearing group as the sending bank should be sent direct to the drawee banks, in accord
ance with the instructions in paragraph 10(c). If the correspondent bank's regular office is in
a damaged area and it has not established an emergency office, the participating bank may send
cash items to other correspondents or may treat such items as items normally sent to this
Bank, following the procedures set forth in paragraph 10.
CasA tfents normally gent to tAts Bank
10. If the Head Office and Buffalo Branch of this Bank are in operation, participating
banks located in an undamaged area should continue to send cash items to the appropriate
office of this Bank until advised to send them elsewhere. If the operations of this Bank have
been transferred to its Relocation Office, participating banks should observe the following
procedures with respect to cash items normally sent to this Bank:
(a )
Send to our Relocation Office
(i) checks
drawn on this Bank, and (ii) checks drawn on the
Treasurer o f the U nited States and postal money orders.
Item s in classes (i) and (ii) should be sep
arately sorted and listed by class.
(b )
Send to our Relocation Office the follow in g cash items payable through the New Y o rk Clear
in g H o u se : (i) cash items drawn on banks that are members of the New Y o rk Clearing House A sso
ciation, and (ii) cash items drawn on clearing nonmember banks for which Clearing H ouse member
banks act as agents in the clearings.
drawee bank.
Such item s should be separately sorted and listed as to each
(B anks that are members of the New Y o rk Clearing H ouse should, of course, continue
to collect items payable through the New Y o rk C learing House in accordance with emergency arrange
ments established by the C learing H ouse, rather
than through our Relocation
Office.)
Procedures,
rules, and regulations of the N ew Y o r k C learing H ouse Association will be observed to the fullest
extent perm itted by circumstances then obtaining.
(c )
Send direct to drawee banks cash items drawn on participating banks in the same emergency
clearing group as the sending bank.
Such items should be endorsed by the sending bank substantially
as fo llo w s: " P a y any bank, banker, or trust co m p an y ; prior endorsements g u a r a n te e d ."
A t the same
time, the sending bank should advise the Check A g e n t bank in its group, on a form (F o rm S u m -1)
to be furnished by the Check A g e n t bank, o f the total dollar amount of cash items sent to each par
ticipating bank in its group (in clu din g cash item s drawn on a participating bank acting as the Check
A g e n t bank in the g ro u p ). On receipt of such advice, the Check A g e n t bank will arrange fo r entries
on this B a n k 's books reflecting credits and charges fo r intragroup items sent by participating banks
in the group.
(d )
Send all cash items drawn on participating banks in the Second Federal Reserve District
(other than the items described in (b ) or (c ) above and items required to be sent direct as provided
in (e ) and ( f ) below) to the Check A g e n t bank in the sending bank's emergency clearing group. The
Check A g e n t bank, on receipt o f such cash item s, w ill arrange for credit on this B a n k 's books.
Therefore, no separate advice of such sendings on F o rm Sum -1 should be sent to the Check A gen t bank.
(e )
Send direct to a participating bank in another emergency clearing group cash items drawn
on that bank, when such direct sending is required by the Check A g e n t bank in the sending bank's
group.
(f)
Such sendings should be reported on F o rm Sum -1 to such Check A ge n t bank.
Send direct to a Check A g e n t bank in another emergency clearing group cash items drawn
on banks in that group, when such direct sending is required by the Check A g e n t bank in the send
ing ban k's group. Such sendings sAoiJd wof be reported to the Check A ge n t bank in the sending bank's
4
group, as the
Check A ge n t bank, on receipt of such cash items, w ill arrange for credit on
this B a n k 's books.
(g )
Send cash items payable in other Federal Reserve Districts (other than items sent to corre
spondents or direct to other Federal Reserve B an ks) to the Check A g e n t bank in the sending ban k's
emergency clearing group.
credit on this B an k 's books.
The Check A g e n t bank, on receipt of such cash items, will arrange for
Therefore, no separate advice of such sendings on F orm Sum -1 should be
sent to the Check A gen t bank. I f volume w arrants, a participating bank m ay be required by the Check
A g e n t bank in its emergency clearing group to send cash items direct to an office of another Federal
Reserve Bank.
Such sendings should be reported as indicated in paragraph 11.
CasA Zfe/ws nor/naZZy sent tZtrect to anotAer FecZeraZ Reserve BanA
11. Participating banks located in undamaged areas that normally send cash letters direct
to an office of another Federal Reserve Bank should continue to do so (to the regular or reloca
tion office). When such cash letters are sent to a relocation office, items payable in the same city
as the regular Reserve Bank office should be separately sorted and listed according to drawee.
Advice of direct sendings to other Federal Reserve Banks should be sent to the Check Agent
bank in the sending bank's emergency clearing group, on a form (Form BK. 140e) to be fur
nished by the Check Agent bank.
Cash items deposited with banks in damaged areas
12. Cash items received for collection by participating banks operating in damaged areas
should be handled as follows:
(a ) Present over the counter, or through the applicable clearing arrangem ent, items drawn on
banks norm ally in the same vicinity.
(b )
Send all other items to a correspondent bank in an undamaged area.
(c ) I f sending to a correspondent bank should not be feasible, send all other cash items (i) to
the appropriate undam aged regular office o f this Bank or (ii) if the operations of this Bank have been
transferred to its Relocation Office, to the Check A g e n t bank in the sending bank's
clearing group.
emergency
Adjustments
13. Adjustments for differences arising between banks within the Second Federal
Reserve District (including those between Check Agent banks and other participating banks)
by reason of errors or omissions in cash letters should be settled between the banks concerned
by a bank sending a debit ticket for the claim in a subsequent cash letter, or sending a credit
ticket authorizing a bank to debit in a subsequent cash letter.
Return of unpaid cash items
14. Items that a drawee bank intends to return unpaid should be sorted by the drawee
bank according to the last endorsing bank, and should be listed and enclosed in a sealed pack
age addressed to the last endorsing bank. The legend "Return Items" and the aggregate
dollar amount of the items enclosed (including protest fees, if any) should be marked on the
outside of the package. To reduce the number of bookkeeping entries, drawee banks should
return each package and obtain credit or refund for the unpaid items enclosed therein, as
follows:
(a )
I f the last endorsing bank is within the same emergency clearing group or within another
emergency clearing group in the Second Fed eral Reserve D istrict, the package should be returned with
the next cash letter addressed to that bank, and the aggregate dollar am ount o f the unpaid items
should be listed as a single item in the cash letter.
5
(b ) E ach other package should be returned to the Check A g e n t bank in the drawee bank's emer
gency clearing group with the next cash letter addressed to that Check A ge n t bank, and the aggregate
dollar amount of unpaid items should be listed as a single item in the cash letter.
(c )
I f on a given day a drawee bank has unpaid items to return, but no cash letter with which to
send the unpaid items, the items m ay be treated as a separate cash letter.
Forms
15. Forms for reporting sendings of cash items will be furnished by Check Agent banks
to participating banks upon the happening of an emergency. The forms should be used by
a participating bank to report, to the Check Agent bank in its emergency clearing group,
sendings of cash items other than sendings to this Bank's Relocation O ce, to a Check Agent
f&
bank, or to a
clearing arrangement. Upon receipt of the advice, the Check Agent bank will
arrange for credit for such sendings on this Bank's books.
Ctty cZearmg arrangements
16. No form for reporting sendings to city clearing arrangements has been provided
because statements resulting from presentments through city clearing arrangements will be
forwarded by those operating such clearing arrangements to the Check Agent bank in the send
ing bank's emergency clearing group.
Bookkeeping entries by participating banks
Sending Aan&s
17. A sending bank should post as separate
entries in the proper account main
tained on its books the dollar amount of cash letters, including cash letters containing only
return items, sent each day as indicated below:
(a ) The apprepa?e dollar amount o f aH cash letters sent to other participating banks in the same
or any other em ergency clearing group.
(b )
The apprepa?e dollar amount of a % cash letters sent to banks through a county clearing
%
arrangem ent.
(c )
The appregrafe dollar amount o f aM cash letters sent direct to offices of other Federal Reserve
Banks.
(d )
The dollar am ount of eacA cash letter sent direct to the Check A ge n t bank in the sending
ban k's em ergency clearing group.
(e )
The dollar amount of eacA cash letter sent direct to a Check A g e n t bank in another emer
gency clearing group.
(f)
The dollar amount o f eacA cash letter sent to this B a n k 's Relocation OfSce.
R eceiving AanAs
18. A receiving bank should post as separate
entries in the proper account main
tained on its books the dollar amount of cash letters, including cash letters containing only
return items, received each day, as indicated below:
(a )
The apprepa%e dollar am ount o f aR cash letters received from other participating banks within
the same em ergency clearing group.
(b )
The dollar am ount o f eacA cash letter received from participating banks in other Second
D istrict em ergency clearing groups.
(c )
The apprepa?e dollar am ount of
cash letters received through a county clearing arrange
ment.
6
(d ) The dollar amount of eacA cash letter received fro m the Cheek A g e n t bank in its emergency
clearing group.
(e ) The dollar amount of eucA cash letter received fro m cfAer Second D istrict Check A g e n t banks
to which cash letters were sent direct. Such cash letters should contain only return items.
U N C O L L E C T IB L E A N D D E S T R O Y E D C A S H IT E M S
Uncollectible cash items
19. The Government's plans for dealing with a national emergency due to enemy attack
include measures to preserve the monetary system. The provisions of paragraphs 20, 21, and
22 are based on those measures.
20. Federal Reserve Banks may give credit for cash items received by them (or by their
Check Agent banks), or held for them by participating banks, even though, because of condi
tions arising from an emergency, the items may be temporarily uncollectible either because the
drawee banks have suspended operations or because transportation facilities are not available.
Any credit given by this Bank for such temporarily uncollectible items will be given subject to
the understanding that credit for each such item will, in turn, be given by each sending bank
to the depositor from which it received the item.
21. Cash items found to be temporarily uncollectible because drawee banks have sus
pended operations or because transportation facilities are not available may be held by this
Bank or held for it by Check Agent banks or, when permitted by this Bank, by participating
banks, until such items should, in the judgment of this Bank, be presented for payment.
The items will be held at whatever point it becomes known that the drawee banks are inopera
tive or inaccessible because of the emergency. After presentment, such cash items will be
returned only for the same reasons for which cash items would be returned under normal
operating conditions, such as insuf&cient funds, no account, or forgery.
22. When a participating bank learns of the temporary uncollectibility of any cash item
in its possession because the drawee bank has suspended operations or because transportation
facilities are not available, it should apply for permission to hold the item and receive credit
therefor on a form of "letter request" obtainable from the Check Agent bank in its emergency
clearing group. Each request should be officially signed and contain the required information
regarding the items held. After receipt of the request, this Bank will notify the requesting
bank when credit will be given for such items held. Each participating bank authorized to
hold temporarily uncollectible cash items should separately list, control, and package such
items for each drawee bank and place the packaged checks in safekeeping. This Bank will, in
due course, instruct the holding banks regarding the presentment or other disposition of
such items.
Destroyed, lost, or missing items
23. Cash items that might be destroyed upon the happening of an emergency will fall into
one of the three following classes:
(a ) cash items destroyed before reaching this B a n k ; or
(b ) cash items destroyed on the premises o f this B a n k ; or
(c ) cash items destroyed after they have le ft the premises of this B ank
bank) that are either in transit or on the premises of the addressee.
7
(o r of a direct-sending
No credit will be given for such items, or if credit has already been given and payment for
such items has not been received by this Bank in actually and finally collected funds, the
credit will be reversed. If no advice of credit for cash items sent to or for account of this
Bank for collection is received from this Bank within a reasonable time after their dispatch,
it may be assumed that the cash items were destroyed.
24. Upon receipt by this Bank of notification of the destruction of cash items either in
transit to or on the premises of an addressee, or if this Bank fails to receive payment within
a reasonable time for cash letters previously dispatched, this Bank will charge back the amount
of such items, if credit has been previously given, including credit previously given on the
basis of advices received for direct-sent cash letters.
25. This Bank will notify all sending banks of its action on destroyed cash items or
items presumed to be destroyed as soon as possible and furnish the date on which such items
were destroyed (if possible) and will also supply any available information or description of
such items. However, it will be necessary for each sending bank to rely on its own records
to reconstruct cash letters that contained such items. Thereafter, sending banks should arrange
with their depositors to obtain duplicate copies of the items destroyed or should prepare photo
graphic copies of such items from microfilm records, if available; and the duplicate or photo
graphic copies should thereafter be forwarded for collection as "new business" under the
applicable procedure outlined herein.
26. If return items are destroyed upon the happening of an emergency, drawee banks
should furnish this Bank with photographic copies or descriptions of items returned unpaid.
27. During an emergency, a considerable length of time may be required to give effect
to the procedures outlined in paragraphs 23 through 26.
REVISION OF THIS CIRCULAR
28.
The right is reserved to withdraw, add to, or amend at any time, any of the provisions
of this circular.
EFFECT OF THIS CIRCULAR UPON PREVIOUS CIRCULAR
29.
This circular supersedes our Emergency Planning Circular
N o . 2,
Revised February
1, 1 9 6 3 .
P A U L A . VO LC K ER ,
8
APPENDIX
List of Check Agent Banks With Area Each WiH Serve*
f'coodh.s Pc apr/s;iu
n
/
Area ^'erred
A
corn n n L /co;
o / occd
o/ A t /icm
c/ew
/r
Area
1
Bank of Smithtown
Smithtown, N. Y. 11787
Nassau, Suffolk
2
State National Bank of Connecticut
Bridgeport, Conn. 06604
Fairfield (3)
3
National Bank of Westchester
Peekskill, N. Y. 10566
Westchester (4)
4
Marine Midland Bank
Poughkeepsie, N. Y. 12602
National Commercial Bank and Trust
Company
Albany, N. Y. 12201
Columbia, Dutchess, Putnam
5
Albany (11) Rensselaer (6),
Saratoga (6), Schenectady (9)
6
The First National Bank of Glens Falls
Glens Falls, N. Y. 12801
Essex, Hamilton, Warren,
Washington
7
Marine Midland Bank
Malone, N. Y. 12953
Clinton, Franklin, St. Lawrence
8
Marine Mildand Bank
Watertown, N. Y. 13601
Jefferson, Lewis
9
City National Bank and Trust Company
of Glovcrsville
Gloversvillc, N. Y. 12078
Fulton (10), Herkimer (10),
Montgomery (10)
10
Wilber National Bank
Onconta, N. Y .13820
Delaware, Otsego, Schoharie
11
Kingston Trust Company
Kingston, N. Y. 12401
Greene, Ulster
12
The Bank of New York
Port Jervis, N. Y. 12771
Orange, Sullivan
13
Marine Midland Bank
Binghamton, N. Y. 13902
Broome (10), Chenango (10),
Cortland (16), Tioga (16)
14
The Oneida National Bank and Trust
Company of Central New York
Utica, N. Y. 13502
Madison (10), Oneida (8),
Oswego(8)
15
Marine Midland Bank
Syracuse, N. Y .13201
Cayuga (16), Onondaga (16)
10
Marine Midland Bank
Elmira, N. Y. 14902
Chemung, Schuyler, Seneca,
Tompkins
* Numbers appearing in parentheses indicate alternate clearing groups to which banks in such
counties are assigned if their regular Check Agent bank is inoperable.
9
Nam e awd Location
Area
Co^wNes C ow -p ri^ g f
Area Served
of A rew R &
g i a%
17
Lincoln First Bank of Rochester
Corning, N. Y. 14830
Livingston, Ontario, Steuben, Yates
18
Lincoln First Bank of Rochester
Rochester, N. Y. 14643
Monroe (20), Wayne (17)
19
The Bank of New York
Olean, N. Y. 14760
Allegany, Cattaraugus, Wyoming
20
Marine Midland Bank
Batavia. N. Y. 14020
Genesee (19), Niagara (19),
Orleans (19)
21
Bankers Trust Company of Western
New York
Jamestown, N. Y. 14701
Chautauqua (19), Erie (19)
22
Empire National Bank
Suffern, N. Y. 10901
N. J.: Bergen (23), Passaic (23)
N. Y .: Rockland (12)
23
Midlantic National Bank/Sussex
& Merchants
Newton, N. J. 07260
Hunterdon, Sussex, Warren
24
National Community Bank of
New Jersey
Dover, N. J. 07801
Essex (22), Hudson (22),
Morris (23)
25
First Merchants National Bank
Asbury Park, N. J. 07712
Middlesex, Monmouth, Somerset,
Union
10
N O T F O R P U B L IC A T I O N
(F or internal use only)
FEDERAL RESERVE BANK
OF NEW
YORK
Emergency Planning
Circular No. 3
Revised November 1, 1 9 7 8
Operations of Federal Reserve Bank of New York
in an Emergency
To -4M
iw t&e Second Federal Reserve District Outside Veto For& City,
and .Head O^ces o/
Ban^s in Veto Yor&; City;
This circular contains information on the plan of the Federal Reserve Bank of New York
for carrying on essential operations in the event of an emergency. It is to be effective only
in an emergency and is not intended to supersede at this time any of this Bank's operating
circulars and instructions currently in effect.
Activation and general scope of plan
1.
This Bank's emergency plan becomes effective upon the transfer of the Bank's opera
tions to its Relocation Office, located at Amherst, Massachusetts (Tel. No. 413-253-9676). When
the operation of the plan is to be terminated or suspended, appropriate notice will be given to
all concerned. During normal times, our Relocation Office serves as a records storage office to
which records relating to operations involving essential relationships with banks and others,
including the Treasury Department, are dispatched daily from the Head O
ffice and Buffalo
Branch. These records would be utilized upon the activation of this Bank's emergency plan.
2.
General information relating to emergency procedures for the maintenance and stabili
zation of the monetary and economic systems is contained in Chapters 1 and 13 of the National
Plan for Emergency Preparedness, a copy of which we sent to the head office of each banking
institution in the Second Federal Reserve District. Also transmitted therewith were copies of
Treasury Department Emergency Banking Regulation No. 1, the statement of the Secretary of
the Treasury accompanying the issuance of that Regulation, and the Department's delegation of
emergency authority to the Board of Governors of the Federal Reserve System. The Treasury
Regulation requires, among other things, that all banking institutions remain open and continue
their operations and functions during an emergency to the extent possible. Under the Treasury's
delegation, the Board of Governors is authorized to take such action, consistent with regulations
issued by the Secretary of the Treasury, as may be necessary to maintain, regulate, limit, or sus
pend the operation and functioning of any banking institution, including commercial banks,
trust companies, private banks, savings banks, and mutual savings banks. The term "banking
institution" as used in this circular is intended to include all of the aforementioned insti
tutions, both members and nonmembers of the Federal Reserve System, and during the emer
gency, transactions will be conducted with all banking institutions. Pursuant to the Treasury's
Regulation and delegation, the Board of Governors has issued two emergency regulations,
Emergency Regulation No. 1, "Operations of Federal Reserve Banks," and Emergency
Regulation No. 2, "Use of Secured Notes to Transfer Credits." Copies of those regulations
have already been distributed to you.
3. The Federal Reserve System's primary objective in the immediate post-attack period
will be to provide liquidity for the financing of essential activities and to promote confidence
in the continued operation of the monetary and banking system. The Federal Government
will offer assurance that those dealing with financial institutions may do so without risk of
the insolvency of such institutions by reason of war loss. Credit will be made available to
member and nonmember banks and under certain circumstances to nonbank borrowers, in
order to promote essential activities. Details regarding the extension of credit by Federal
Reserve Banks in an emergency are set forth in paragraph 7(h) hereof under the heading
"Advances and Discounts."
4. Two essential operations will not be handled by our Relocation Ofhce, but will be
handled by selected commercial banks that have been designated to act as this Bank's agents.
These operations are the distribution of currency and, subject to certain exceptions, the
handling of checks and other cash items in the process of collection. The programs for the
distribution of paper currency and for the handling of checks are described in this Bank's
Emergency Planning Circulars No. 1 and No. 2, respectively. Other operations that are nor
mally handled by this Bank but will not be conducted at the Relocation O
ffice are referred to
elsewhere in this circular.
5. As soon as practicable following the activation of this Bank's emergency plan, each
banking institution should submit information to our Relocation O
ffice relating to its function
ing and operability in the form of Exhibit A hereof.
6. Upon the activation of this Bank's emergency plan, all its then currently effective
operating circulars and other instructions, as amended and supplemented to that date by this
and other emergency planning circulars, will continue in full force and effect during the
emergency.
Modification of operating circulars and other instructions
under emergency plan
7. The operating circulars and other instructions listed below are hereby modified as
indicated below, the modifications to take effect upon the activation of this Bank's emergency
plan and to remain in effect until notice to the contrary from this Bank or from another
Federal Reserve Bank acting in behalf of this Bank.
f a ) A nfAcriaed
(UperaZtTtp UircMZar N o. JZ). W h ile the B a n k 's emergency plan remains
in effect, the officers of the Buffalo B ranch will be officers of the Federal Reserve Bank o f New Y o rk
and w ill be authorized to sign in its behalf.
f&) Aeserres o / Z?anA*g fOperaZiny CircaZar A o. ,2).
Pursuant to the authority contained in
E m ergency Regulation No. 1 of the Board of Governors, penalties on deficient reserves of member
banks in the Second Federal Reserve District will, on the happening of an emergency, be waived
2
until notice to the contrary is received from this Bank or from another Federal Reserve Bank acting
on behalf of this Bank.
Em ergency Regulation No. 1 of the Board of Governors also authorizes
Federal Reserve Banks, among other things, to extend reserve requirements to nonmember banks
when conditions warrant and to raise or lower reserve requirements for member banks.
fc ) P aper C%rreMC2 aitd C ow ("Operatwp Circidar No. 8 ) .
/
In an emergency, this B ank will
not physically handle paper currency or coin at its Relocation Office. Certain banks have been author
ized to handle, as this B an k 's agents, the distribution and exchange of paper cu rren cy; Cash A g e n t
banks will not receive and distribute coin.
O ur Em ergency P lanning Circular No. 1 contains complete
details of the emergency procedures for the distribution of paper currency, and its A p p en d ix lists the
names o f Cash A g e n t banks and the area each will serve.
fd ) CoMecfia% o / Cas%, D ew s ( D p c r a f i ^ Circidars Nos. 4, 5, awd 6, awd paragraph 2 o / O p eratw #
Uircidar No. 7 ) .
W h ile the emergency plan remains in effect, this B ank w ill receive fo r collection cer
tain cash items at its Relocation OfBce, but the bulk o f the check-clearing operations w ill be handled
through Check A ge n t banks.
F u ll details are contained in our E m ergency P lanning Circular No. 2,
which also lists the names of Check A g e n t banks and the area each will serve.
(^c) D aps a%d R o w s o / Operation ("ParagrrapA I o / O peratw p Circidar No. 7 ) .
The provisions of
paragraph 1 of Operating Circular No. 7 will be suspended while the emergency plan remains in effect.
(Y) CoMeciio% o / No%cas%, Dents ("OperaDnp Circidar No. 8 ) .
(1 )
W h ile the emergency plan
remains in effect, this Bank will receive at its Relocation Office for collection, only such noncash items
as are payable at or through banks that are members o f the New Y o rk Clearing H ouse Association
or at or through nonmember clearing banks for which Clearing H ouse member banks act as agents in
the clearings.
A ll other noncash collection items should be collected through such means other than
through this Bank as m ay seem advisable and, i f remittance would be facilitated, m ay be accompanied
by instructions to remit the proceeds to this Bank at its Relocation Office for the account of the send
ing bank, provided the sending bank maintains an account on our books.
Item s norm ally handled as
cash items should not be sent to the Relocation Office fo r collection as noncash items.
(2 ) Unless otherwise instructed by its principals, this Bank, as fiscal agent of the obligors, will
continue to pay or redeem, at its Relocation Office, obligations of (i) the U nited States and various
United States governmental agencies, (ii) International Bank for Reconstruction and Developm ent, and
(iii) Inter-A m erican Developm ent Bank.
(3 )
Tracers or inquiries about outstanding items should not be sent to the Relocation Office w ith
out due regard fo r the emergency conditions under which all banks w ill be operating. W h e n a tracer
is sent, it should contain all details that would aid identification, including when and by what method
the item was dispatched to this Bank, the name of the obligor, the amount, and the issue and due dates.
f<7) Traits/crs a / Nawds ("O p e r a tic Circidars Nos. 70 awd I I ) .
(1 ) In an emergency, this Bank
m ay not be in a position to comply, within any fixed time lim it, with requests to make telegraphic
transfers of funds.
A ccordingly, any request to this Bank fo r the telegraphic transfer of funds will
be received by this Bank on the understanding that such transfer m ay be delayed indefinitely.
Other
wise, this Bank will, to the extent that the situation permits, continue to effect transfers of funds in
accordance with Operating Circulars Nos. 10 and 11.
(2 ) A ll domestic telegraphic messages to this Bank should be sent in ordinary E n glish, not in
code.
A s soon as possible after the activation o f our emergency plan, a special list of test words will
be sent to you for use in authenticating telephonic and telegraphic requests for transfers o f funds.
(3 )
The daily net balance of exchanges of those clearing arrangements that continue in opera
tion during an emergency and whose daily net balance of exchanges is norm ally transm itted to this
Bank by telegraphic advice or messenger should continue to be sent to this Bank by mail, telegram,
or messenger.
(A ) A dvances uwd Discounts fOperating? Circulars Nos. 1,2 and 1 8 ) . (1 ) In an em ergency, advances
and discounts m ay be made by us in accordance with E m ergen cy Regulation No. 1 of the B oard of
Governors of the Federal Reserve System to member and nonmember banking institutions and, under
certain circumstances, to nonbank borrowers.
Section 9 o f the Regulation provides, in part, that the
3
provisions of the B o a rd 's R egulation A shall continue to apply to the making of discounts or advances
im m ediately follow ing an attack, except to the extent that, and for the period in which, the results of an
attack make desirable or necessary the use of emergency measures described in Section 9. The B oard 's
Regulation A provides, among other things, that any Federal Reserve Bank may make advances under
authority of Section 1 0 (b ) of the F ederal Reserve A c t to any of its member banks upon the latter's
promissory note secured to the satisfaction o f such Federal Reserve
Bank regardless of whether
the collateral offered as security conforms to eligibility requirements under other provisions of R egu
lation A .
The principal objective in the making of advances and discounts in an emergency w ill be to
assure, insofar as possible, that credit is available to conduct essential industrial, business, and service
activities.
(2 )
A dvances m ay be made to banking institutions against unencumbered assets owned by the
borrower and held in safekeeping by this Bank that are eligible under Regulation A
of the Board
of Governors as security for an advance, notwithstanding the fa c t that such assets m ay be immobilized.
In addition, this Bank m ay also make advances
to member and nonmember
banking institutions
against—
(i)
Identified, unencumbered assets that are eligible under Regulation A
of the Board of
Governors as security for an advance and owned by and held in the vaults of the borrower, without
regard to whether such assets are immobilized, provided that the borrower duly executes and
delivers a statement in the form o f E xh ibit B h ereto; and
(ii)
Identified, unencumbered assets that are eligible under Regulation A of the Board of
Governors as security fo r an advance, owned by the borrower but held in the vaults of a third
p arty, w ithout regard to whether such assets are immobilized, provided that the borrower duly
executes and delivers a statem ent in the form of E xh ibit B hereto, and also instructs such third
p a rty by executing and delivering a letter to such third party in the form of E xh ibit C hereto to
hold such assets for the account o f and subject to the sole order of this Bank, and such third party
agrees to do so by executing and delivering to this Bank a letter in the form of E xh ibit D hereto.
( 3 ) A n y banking institution requiring credit assistance fo r essential industrial, business, or serv
ice activities, but unable to obtain such credit assistance as a result of the emergency, should communi
cate with this B ank and furnish fu ll inform ation in respect of its need for credit assistance and its
inability to obtain the same.
(4 )
B anking institutions and others concerned are urged to borrow against U nited States Gov
ernment securities, even i f the securities are not physically available, rather than to attem pt to sell
such securities during the immediate post-attack period.
(5 )
The enclosed E m ergency Regulation N o. 2 of the B oard of Governors of the Federal Reserve
System provides for the m aking o f paym ents, under certain circumstances, by banking institutions by
means of notes payable to the order o f a Federal Reserve Bank or other banking institution.
(6 )
Federal Reserve Banks are authorized to restrict credit to any bank that w ilfu lly violates
Treasury D epartm ent E m ergency B anking Regulation No. 1.
(7 ) P ursuant to Section 9 ( e ) of E m ergency Regulation No. 1 of the B oard o f Governors, credit
extended by this B ank in the immediate post-attack period to banking institutions w ill be at rates
indicated in our Operating C ircular No. 13 then in effect, and credit extended to others than banks will
be at rates deemed appropriate by this Bank.
(8 ) Mem ber banks m ay a pply to this B ank for the discount of paper that, though otherwise
eligible, bears the endorsement o f a nonmember bank.
(%)
o/
fOperotiwgr
A o.
(1 )
In
an em ergency, no securities, commercial paper, or bankers' acceptances will be received and held by
this B ank at its Relocation Office, except that this Bank m ay, in its discretion, receive and hold securi
ties, commercial paper, and bankers' acceptances as collateral for advances.
4
<
(2 ) A record of securities held for the account of member banks is maintained at the Relocation
Office.
It is expected that in the event of an emergency this record will be current, except for a period
of one or two days, depending upon the time the emergency occurs. The proceeds of matured issues of
U .8 . Government securities and coupons therefrom held by us in safekeeping w ill be credited to a mem
ber bank's reserve account as prom ptly as possible after m aturity without regard to whether the securi
ties or coupons are available.
I f feasible, an effort will be made to obtain paym ent fo r m aturing and
matured commercial paper, bankers' acceptances, and securities and coupons other than U . 8. Govern
ment securities and coupons, held in custody and immobilized at the New Y o rk Office, on the basis of
descriptions of such items in this B a n k 's records.
(3 )
The practice of endeavoring to inform member banks of developments affecting their securi
ties, as reported in statistical services, w ill be discontinued. A ccordingly, banking institutions w ill have
the entire responsibility of keeping inform ed in respect o f events affecting their securities held by
this Bank and of giving this B ank prom pt instructions regarding the handling o f such securities. Such
instructions w ill be complied with to the extent that the situation permits.
CO F ad arad R asarvaB an A R facA (^Cparafmp Cmcidar A a. Id O
(1 )
A pplications fo r additional
amounts of Federal Reserve Bank stock or for the cancellation of Federal Reserve Bank stock should
not be died with this B ank at its Relocation Office until notice to the contrary is received from this
Bank.
(2 )
Dividends payable on the stock of this Bank will be credited to the reserve accounts o f mem
ber banks as soon as practicable, and member banks will be advised as to the date on which such
dividends are so credited.
Transacffans m
A a. 7 7 0
C m fad Bfafas RacnrRias Of%,ar fAan Bavm ps Rands
fO parafm p
Cmcidar
(1 ) This Bank will handle, at its Relocation Office, transactions in U nited States securities
other than savings bonds, in accordance with Operating Circular No. 17, subject to the follow ing
exceptions and con dition s:
(i) N o denominational exchanges of registered securities will be m ad e; registered securities
will not be transferred or processed for transfer by this B a n k ; and no registered securities will
be issued in exchange for bearer securities.
(ii) Denom inational exchanges o f bearer securities will be made, and bearer securities may
in our discretion be issued in exchange for registered securities, insofar as the available unissued
stock of securities of the appropriate type and issue permits.
(iii)
I f the form s referred to in paragraph 2 of Operating Circular No. 17, relative to cer
tain transactions in U .8 . Government securities, also referred to in that paragraph, are not avail
able, any written communication containing all o f the required inform ation will suffice.
(iv )
Telegraphic transfers of bearer securities as set forth in Operating Circular No. 17
will continue to be effected at the Relocation Office to the extent that facilities and unissued stocks
of securities of the appropriate issues are available. Requests for such transfers will be received
at the Relocation Office on the understanding that this Bank cannot undertake to make such trans
fers within any fixed time lim it and that such transfers may be delayed indefinitely.
The trans
fer fees provided for in Operating Circular No. 17 will not be charged until such time as notice
to the contrary is given by this Bank.
fO D apasd a / Federal Ta^cas W d A D apasdarp Band's fO parafm p Cmcidar A a. 7 8 0
This B an k 's
Relocation Office will handle deposits of certain Federal taxes made with depositary banks, as indicated
in our Operating Circular No. 18.
fin j R e p o r t a / Transacfmns in Faraipn FacAanpa, Trans/ars a / Cradif, and F r p a r f a / C am and
Cnrrancp fO parafinp Circidar A a. 7 3 0
The requirements of our Operating C ircular No. 19 fo r report
ing certain foreign transactions and transactions with foreigners should continue to be made during
an emergency if feasible in the light o f circumstances then obtaining.
00
Ciudad 87afas Bavinps Rands. (1 ) Znsfrncfians fa issninp Apanfs ("Cparafmp Circidar A a. ^dO
This Bank will not issue Series E or H savings bonds or handle the replacement o f lost, destroyed,
5
or stolen savings bonds at its Relocation Office.
W ith these exceptions, our Operating Circular No. 20,
containing instructions to issuing agents, will continue in effect. Issuing agents should submit to this
B ank, at its Relocation Office, the reports of sales and spoiled or excess bonds in the usual manner, as
specified in that circular.
Requisitions for bond stock, submitted to the Relocation Office, will be filled
to the extent of available supplies.
(2 )
to P n y w p Apewfs.
(i) E xh ib it E hereof is a form of agreement providing for the retention by qualified paying
agents of paid savings bonds until notified by this Bank to forw ard such bonds to its Relocation
Office.
This B ank will continue to make immediate settlement, subject to adjustm ent, fo r the total
amount of paid bonds claimed by the paying agents. Transm ittal letters, without the bonds, should
be sent to us at weekly or at greater intervals, i f necessary, by paying agents in order to receive
credit for the total amount of paid bonds claimed.
P aying
agents should bear in m ind that
redemption of savings bonds is subject to the cash withdrawal limitations of Treasury D epartm ent
Em ergency B anking Regulation No. 1.
(ii)
Series H and K
and unm atured Series G bonds, which m ay not be paid by qualified
paying agents, should not be subm itted to this B a n k 's Relocation Office for paym ent, pending
resumption of such redem ption operations by this Bank and the Treasury Departm ent.
Any
other savings bonds o f any series that a paying agent, or an agent qualified under Treasury
Departm ent Circular No. 888, is not qualified or permitted to pay, should be forw arded to the
Relocation Office for exam ination and paym ent.
General
8. The V-loan program will remain in effect during an emergency. Applications for
V-loan guarantee agreements should be sent to this Bank's Relocation O
ffice.
9. We shall continue in an emergency to maintain the Treasurer's General Account,
Treasury Tax and Loan Accounts, member bank reserve accounts, and nonmember clearing
accounts.
10. Our Relocation Office will, to the extent possible, disseminate information of general
interest to banking institutions. In return, we would like to have you keep our Relocation
Office informed as to conditions that would be of interest to us.
Revision of this circular
11. The right is reserved to withdraw, add to, or amend at any time, any or all of the
provisions of this circular.
Effect of this circular upon previous circular
12.
This circular supersedes our Emergency Planning Circular No. 3, dated July 17, 1963.
P A U L A . VO LC K ER ,
6
EXHIBIT A
("Form o/ AeR ?;{/ a ^um (/
gr
A:w
RowA: o/ Few YorAc,
fo TMocalnw O^icc, Fede/'uA Ecscruc
iw/orwa^o^ %
s
a^itA operaM^i/
/oAAowi?igf ac^ru^o?t o / emeryewci/ pAaw o / Federal Fe&erve R
nnrA o / Few YorAcJ
c
Relocation O
ffice
Federal Reserve Bank of New York
P. 0. Box 792
Amherst, Mass. 01002
Gentlemen:
Herewith follows pertinent data relative to the functioning and operability of the belownamed bank on the date shown. Similar information for each of our..................... branches
is indicated on Schedules..................... through ....................... attached.
^
have
have not relocated.
'
2.
A ddress of our relocation office is.....................................................................................................................................
3.
We
4.
The operability of communications services in our area has been affected as follow s:
^
anticipate relocating in the immediate future.
M ail
Telephone
Telegraph
5.
The total amount of currency that we now have and is accessible to
us is $ ............................................
6.
The total amount of currency that we have but is not accessible to us is $ ............................................
7.
W e anticipate ordering currency in the amount and denominations indicated below from your
cash agent on ........................................................................................
Number
Amount
.........................................................
$1
$........................................................
....................................................................................$5
$ ..................................................................................
...........................................................................$10
$.........................................................................
......................................................... $20
$........................................................
8.
The total amounts of checks on hand to be forwarded for collection are as fo llo w s:
To be sent to banks in the Second Federal Reserve D istrict
$ ....................................................................................
To be sent to banks in O ther Federal Reserve Districts
$ .................................................. 9.
(Please furnish inform ation concerning management, personnel, etc., regarding your capability
to continue operations.)
Telephone n u m b e r:
T W X numbers, if a n y : ...................................................
.....................................................
By
(Title)
7
EXHIBIT B
Relocation O ice
H
Federal Reserve Bank of New York
P. O. Box 792
Amherst, Mass. 01002
Gentlemen:
Statem ent made by ............................................................................................................................... ,
a banking institution, in order to induce the Federal Reserve Bank of New Y ork
to make an advance to such institution in the am ount of $ ................................................
and otherwise in accordance with the attached application d a t e d ..................................
without physical delivery to the F ederal Reserve Bank of New Y o rk of the assets
described in the attached application.
The assets set forth in Schedule(s) ........................................................ of the attached
application that are to constitute the collateral security for an advance by Federal Reserve
Bank of New York of $........................................ to the undersigned to be evidenced by the
promissory note of the undersigned are:
1.
Owned by the undersigned and located at ..............................................................................................................
2.
U nencum bered;
3.
E ligible, pursuant to R egulation A o f the B oard of Governors of the Federal Reserve System,
as security fo r such a d va n ce;
4.
a.
In the case o f securities, in bearer fo r m ;
b.
In the case of notes, drafts, bills o f exchange, or bankers' acceptances, in bearer form or
\vill be
endorsed to the order o f the Federal Reserve B ank of New York,
have been
The undersigned banking institution hereby transfers title to the assets listed in
Schedule(s) ........................................... of the attached application to Federal Reserve Bank of
New York and agrees to execute any further instruments and to do such further acts and things
as may be required by Federal Reserve Bank of New York that are, in the judgment of Federal
Reserve Bank of New York, necessary or appropriate (i) to perfect the transfer of title to
such assets to Federal Reserve Bank of New York, or (ii) to etfect the delivery of physical
possession of such assets to Federal Reserve Bank of New York, or (iii) to comply with the
provisions of Regulation A. The undersigned further agrees to hold such assets subject to
the sole order of Federal Reserve Bank of New York pending physical delivery of such assets
to Federal Reserve Bank of New York or, in the case of assets held by a third party, to deliver
to the third party a letter in the form of Exhibit C to Federal Reserve Bank of New York
Emergency Planning Circular No. 3 and an executed copy of such letter to the Federal Reserve
Bank of New York, and cause to be delivered to Federal Reserve Bank of New York a letter
from the third party in the form of Exhibit D to such circular. As between the undersigned
and Federal Reserve Bank of New York, all risk of loss of such assets, howsoever caused
(except losses due to the negligence of Federal Reserve Bank of New York) is assumed by the
undersigned until such assets are delivered into the physical custody of Federal Reserve Bank
of New York.
By
(T itle)
8
EXHIBIT C
/F o r m o /
& pro^pec^ve borrower /r o w Federal Reserve RawAr
j!/
o / Yeta YorA; fo ^Mrd p a r % AoMer o / assess fo &e ^sed as coMafera^ fo secure
advowee 7o sac7( borrow er./
(Date)
Gentlemen:
The undersigned .......................................................................................................................
has executed a note dated .................................................. payable to the order of Federal
Reserve Bank of New York evidencing an advance to the undersigned in an aggregate principal
amount of $......................................... to mature on..........................................................................
as more fully set forth therein and providing also for the securing of such advance by certain
assets, such assets being described in the schedule(s) included in the application for such
advance dated.....................................................
Some of the
constituting the security for such advance are as of the date hereof
located in your vaults at .......................................................................................... and are held
by you subject to the sole order and for the sole account of the undersigned. Such assets are
listed and described in Schedule A hereof.
The undersigned hereby instructs and authorizes you, irrevocably, to transfer to and to
hold for the sole account of and subject to the sole order of Federal Reserve Bank of New
York, the assets described in Schedule A hereof and to accept and to act upon any and all
instructions of Federal Reserve Bank of New York in respect of such assets and to execute
and deliver to Federal Reserve Bank of New York a letter in the form attached hereto.
It is understood that no liability shall be incurred by you to the undersigned or to Federal
Reserve Bank of New York, in connection with any failure to comply with the instructions of
the undersigned or of Federal Reserve Bank of New York in the event that such failure occurs
because such assets are not in your physical control due to the current national war emergency
or in the event that such failure is due to any other cause arising out of the current national war
emergency, nor shall you incur any liability to the undersigned or to Federal Reserve Bank of
New York by reason of the loss or damage of such assets in the event that such loss or damage
arises out of such emergency.
An executed copy of this letter is being sent by the undersigned to Federal Reserve Bank
of New York.
Very truly yours,
(Name of Banking Institution)
By
(Title)
9
EXHIBIT D
fForm o/ Z % %
e% er o
Federal Reserve Raw& o/ Few Yor/c & AoMer
i/
as^e^s &e^owgfm^ % borrower /r o m Federal Reserve Ro^Ac o / F ew YorA;J
o
(Date)
Relocation O ice
R
Federal Reserve Bank of New York
P. O. Box 792
Amherst, Mass. 01002
Gentlemen:
In accordance with the instructions o f ......................-.......................................................... .
set forth in its letter to the undersigned dated................................................ , the undersigned
has transferred to and now holds for the sole account and subject to the sole order of Federal
Reserve Bank of New York assets described as follows:
The undersigned agrees to accept and to act on the instructions of Federal Reserve Bank of
New York with respect to such assets and has made such transfer on the understanding that it
will incur no liability to Federal Reserve Bank of New York in connection with any failure to
comply with instructions of Federal Reserve Bank of New York in the event that such failure
occurs because such assets are not in the physical control of the undersigned due to the current
national war emergency or in the event that such failure is due to any other cause arising out
of the current national war emergency, nor shall the undersigned incur any liability to Federal
Reserve Bank of New York by reason of the loss or damage of such assets in the event that
such loss or damage arises out of such emergency.
Very truly yours,
By
(Title)
10
E X H IB IT
(Fcrwt o/ ag'reemewt to
E
to Federat Reserve Raw& o/ Yew YorA;
&y gwati^ed pa^/^wp apewt^ of U m ted sta tes Raviwgf^ Rowd^ p?*ov^dm^ /o r tAe
retewttow dwrtwy aw ewterpewc?/ o / patd savwgfs &owd^ wwtR wott/ted
Federal
Reserve Raw& o / Y ew Y o r^ to forw ard swcA. &owd& to ^ s Retocattow O j^ceJ
The ................................................................................. ........................................................... ,
a qualified agent for the payment of savings bonds under Treasury Department Circular
No. 750, Revised (and Treasury Department Circular No. 888, Revised), agrees to hold paid
savings bonds following activation of the emergency plan of the Federal Reserve Bank of New
York, until such time as notice is given by that Bank to forward such bonds to its Relocation
O ice.
H
The Federal Reserve Bank of New York will continue to make immediate settlement, sub
ject to adjustment, for the total amount of paid bonds claimed by the undersigned.
Adjustments necessary following the audit of the paid savings bonds, when submitted for
processing, will be settled between the undersigned and Federal Reserve Bank of New York
as Fiscal Agent of the United States.
The undersigned shall be bound by, and comply with, the provisions of applicable Treasury
Department circulars, including all supplements and amendments thereto, and instructions
issued thereunder.
IN W
ITNESS W ER F, the above named paying agent has caused this agreement to be exe
H EO
cuted by its duly authorized ohicer named below as of this...... day of................................19.......
(Address)
B y - ........................................................, .......................
(Title)
11
@FedFRASER