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$ T io S b L f FEDERAL RESERVE BANK OF NEW YORK January 7, 1992 To the Addressee; Enclosed is a copy of this Bank's Operating Circular No. 13, revised effective January 9, 1992, on discount rates. In accordance with the announcement made in our Circular No. 10407, dated December 10, 1990, the operating circular has been revised to reflect a conversion of the interest rate charged on seasonal borrowings from the discount window (typically, borrowings by small and mid-sized agricultural banks and banks in resort areas) from a fixed to a market-related rate. Clarifying changes have also been made in the operating circular. In all other respects the operating circular remains unchanged. The Bank's basic discount rate remains at 3.5 percent. Circulars Division A T iOSo Cp Federal Reserve Bank of New York O perating C ircular No. 13 Revised effective January 9, 1992 DISCOUNT RATES To All Depository Institutions in the Second Federal Reserve District: 1. This Bank has changed the interest rate on advances of seasonal credit, effective January 9, 1992. The rate will be a flexible rate that takes into account rates on market sources of funds, rather than the basic discount rate. Shown on the reverse side are the rates now in effect at this Bank on advances and dis counts made under the Federal Reserve Act. o 2. This circular supersedes our Operating Circular No. 13, revised effective December 20, 1991. E. G e r a l d C o r r ig a n , President. © (O V E R ) AW )D $ D (s Rates Effective January 9, 1992 Under Sections 10B, 13, and 13a of the Federal Reserve Act The following rates will be applied to advances and discounts for depository institutions: Adjustment Credit The basic discount rate, currently V /2 percent per annum, is usually charged for advances of adjustment credit. In the case of adjustment credit advances determined by this Bank to be unusually large and to arise from a major operating problem at the borrowing institution, including but not limited to a computer outage, this Bank, in its discretion, may charge the highest rate established by this Bank for advances to depository institu tions. Seasonal Credit A flexible rate, no less than the basic discount rate, that takes into ac count rates on market sources of funds will be applied to seasonal credit. This rate will ordinarily change every two weeks, and the changed rate will apply to both new and outstanding advances of this type. The rate may, under certain circumstances, be changed more frequently than every two weeks. Extended Credit The flexible rate plus fifty basis points will be charged for extended credit to institutions under sustained liquidity pressures or for other special circumstances. The current extended credit rate shall apply to any extended credit outstanding for more than thirty days and may be applied, in the Bank’s discretion, at any time extended credit is granted or outstanding. A depository institution may obtain inform ation regarding the current rate by contacting the Loans and C redits Function (Tel. No. 212-720-5394 or 1452).
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