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F e d e r a l R e s e r v e Ba n k of New York fit-f New York, N.Y. 10045 A R E A C O D E 2 1 2 -7 2 0 -5 0 0 0 March 25, 1991 TO: All Depository Institutions Receiving Government ACH Entries, in the Second Federal Reserve District: Attached is a letter from the Department of Treasury, Financial Management Service (FMS) announcing the expansion of Phase II of the Government Notification of Change (N0C) Program to all depository institutions, effective April 5, 1991. This means that as of this date, the Federal Reserve Bank of New York will accept paper Government NOC items for conversion to automated form. The Treasury will continue to accept paper NOCs directly from depository institutions at no charge. The Federal Reserve Pank of New York will utilize a history database of ACH items to convert paper notification of change items received from finan cial institutions to automated form to insure accuracy. Only 10 days will be maintained on our database. Therefore, to ensure that the information for NOCs submitted by your institution can be derived from our database, it is important that you send us these items on a timely basis. Government agencies require the account type (demand or savings) to be indicated on an NOC. The paper NOC form, which must be used to submit such items at this Bank, has a demand/savings indicator on the upper left. Please ensure that the account type is indicated by checking the appropriate box. If this box is not checked, the NOC can not be processed and will be returned. The fee for converting a paper Government NOC to automated form is $1.00 per item. Financial institutions are encouraged to automate NOCs by obtaining on-line origination capability using a Fedline or by having a correspondent or service bureau originate these items for them. If you have questions about how to submit paper Government NOCs to the Federal Reserve Pank of New York, please call Gladys Santana at (212) 720-5200, or Richard Latish at (212) 720-5641. To receive forms to submit paper NOCs, fill in the request form attached and return it to the Automated Payments Division at this Bank. Andrew Heikaus, Manager Funds Transfer Department Attachments DEPARTM ENT OF THE TR EA SU R Y F IN A N C IA L M A N A G E M E N T S E R V IC E W A S H IN G T O N , D .C. 20227 To: All Depository Institutions Receiving Government ACH Entries Subject: Government Notification of Change On April 5, 1991, the Financial Management Service will expand Phase II of the Notification of Change (NOC) Program to all depository financial institutions. Phase II allows financial institutions that are not automated to submit NOCs on paper forms to their servicing Federal Reserve Bank, local ACH association, or data processor for conversion to automated form and subsequent processing via the ACH system. To ensure that your NOCs are processed by Government agencies, financial institutions should make sure they have received the original payment information. Government agencies match the information on the NOC to the original payment information on their files. Financial institutions using data processors should make sure they are receiving the original payment information that was submitted by Government agencies. If your payment information has been truncated or changed by the data processor, you cannot create a correct NOC. Procedures for processing Government NOCs are contained in the Green Book (Payments Section, Chapter 7) and in the NOC Operational Guide, a copy of which is attached. If you need additional copies of the Guide or a copy of the Green Book, please contact your local Customer Assistance Staff (CAS) office. For further assistance, contact our NOC staff on (202) 287-0467 or the CAS in your region. Austin, TX Chicago, IL Philadelphia, PA Washington,DC (512) (312) (215) (202) 482-7240 353-5622 951-5398 786-8000 Birmingham, AL (205) 731-0642 Kansas city, KS (913) 236-3470 San Francisco,CA (415) 974-7228 Sincerely, C w /tZJzuJIL t 7 Susan Veintemillas, Manager Product Implementation Branch Product Integrity Division Attachment NOTIFICATION OF CHANGE A Notification of Change (NOC) is used by a financial institution to notify a Federal Government agency to correct or change account information in an entry the agency processed through the Automated Clearing House (ACH) network. TYPES OF NOTIFICATIONS OF CHANGE Automated NOC A u to m a te d N O C s a re c o m p u te r -g e n e ra te d b y a f in a n c ia l i n s t it u t io n (FI) o r it s s e rv ic e b u re a u a n d d e liv e re d to G o v e rn m e n t a g e n c ie s v ia th e A C H n e tw o rk . Automated NOCs are the preferred method to notify Government agencies of change information. W h e n h ig h -v o lu m e c h a n g e s (100 o r m o re ) a re n e c e s s a ry , a u to m a te d N O C p ro c e d u r e s s h o u ld b e u s e d . P ro c e d u re s f o r p r e p a r in g a u to m a te d N O C s c a n b e fo u n d in d o c u m e n ta tio n p ro v id e d w it h y o u r s o ftw a r e a n d in F in a n c ia l M a n a g e m e n t S e rv ic e a n d F e d e ra l R e s e rv e S y s te m p u b lic a tio n s . P ro c e d u r e s c a n a ls o b e fo u n d in n o n -g o v e rn m e n t p u b lic a t io n s s u c h a s th e A C H R u le s p u b lis h e d b y th e N a tio n a l A u to m a te d C le a r in g H o u s e A s s o c ia tio n . Paper NOC F in a n c ia l in s t it u t io n s th a t d o n o t h a v e th e c a p a b ilit y to a u to m a te N O C s c a n p re p a re a n d s u b m it N O C s o n p a p e r fo rm s . fo r m s a re s u b s e q u e n tly a u to m a te d a n d d e liv e re d to G o v e rn m e n t a g e n c ie s v ia th e A C H . These O b ta in N O C fo r m s fr o m y o u r s e rv ic in g F e d e ra l R e s e rv e B a n k (F R B ) o r y o u r lo c a l A C H A s s o c ia tio n . F o r e a c h A C H e n try r e q u ir in g a c h a n g e , c o m p le te o n e N O C fo rm p e r a p p lic a b le C h a n g e R e a s o n C o d e . as it appears on your Entry Register, otherwise, agencies may not be able to process your NOCs. th e a p p r o p r ia te C h a n g e F ie ld (s ). NOTE: Copy all information exactly E n te r th e c o r r e c t in f o r m a tio n in S e e th e s a m p le N O C fo r m o n th e re v e rs e s id e o f t h is g u id e . T h e in f o r m a tio n o n y o u r E n try R e g is te r m a y h a v e b e e n r e fo r m a tte d b y y o u r d a ta p ro c e s s o r . C o n s u lt w ith y o u r p r o c e s s o r to e n s u re t h a t y o u r E n try R e g is te r c o n ta in s a ll th e in fo r m a tio n p r e c is e ly a s it w a s o r ig in a te d b y th e G o v e rn m e n t. C o n ta c t y o u r s e r v ic in g F R B , lo c a l A C H A s s o c ia tio n , o r d a ta p r o c e s s o r f o r s p e c if ic in s t r u c t io n s o n w h e re to s e n d N O C fo rm s . DO NOT SEND c o m p le te d N O C fo r m s to G o v e rn m e n t a g e n c ie s . T h e n u m b e r o f p a p e r N O C s f o r h ig h -v o lu m e c h a n g e s c o u ld b e c o m e o v e rw h e lm in g . P a p e r N O C file r s s h o u ld d e te r m in e if a u to m a te d N O C p ro c e d u r e s o r o th e r a u to m a te d o p tio n s a re a v a ila b le th r o u g h th e ir d a ta p ro c e s s o r . S e e th e G re e n B o o k fo r a d d it io n a l o p tio n s . Table 1. Change Reason Codes for Government ACH Entries C hange C ode * C hange R eason Use C hange Exam ples Field * * C01 Incorrect Account Number 1 To correct a data entry error, to issue a new number to an account or to modify the account numbering structure, e.g., to drop a branch code. C02 Incorrect Routing Transit Number (RTN) 1 To accommodate a merger or system consolidation; to change the RTN to the preferred RTN for the FI. C03 Incorrect RTN and 1&2 Incorrect Account Number C05 Incorrect Transaction Code 1 To accommodate a merger or system consolidation. NOTE: Use this code when both the RTN and the Account Number should be changed. Both Change Fields must be used. Enter the correct RTN in Change Field 1 and the correct Account Number in Change Field 2. To change an account from demand (checking) to savings, or savings to demand. NOTE: The only Transaction Codes recognized by the Government are 22 or 27 for demand accounts and 32 or 37 for savings accounts. Enter only the new 2-digit Transaction Code in Change Field 1. N O C m a y n o t b e u s e d to c h a n g e th e o w n e r s h ip o r t i t l e o f th e a c c o u n t; f o r e x a m p le , a c h a n g e o f n a m e r e q u ir e s th e r e c ip ie n t to c o n t a c t h is /h e r G o v e rn m e n t a g e n c y , a n d a c h a n g e fr o m o n e FI t o a n o th e r b y th e r e c ip ie n t r e q u ir e s a n e w e n r o llm e n t. R e g u la tio n s c o v e rin g th e u s e o f N O C s a re fo u n d in T itle 31, U .S . C o d e o f F e d e ra l R e g u la tio n s , P a rt 210 (s e e th e G re e n B o o k ). * The use of any other Change Reason Code is not authorized. Unauthorized change codes cannot be processed by Government agencies. ** Change Field refers to the data element name on the NOC form (see the sample NOC form and Table 2 on the reverse side for more information). This guide is published by the FINANCIAL MANAGEMENT SERVICE, a bureau of the Department of the Treasury. For further assistance, please call the Customer Assistance Staff in your region: Austin, TX (512) 482-7240; Birmingham, AL (205) 731-0642; Chicago, IL (312) 353-5622; Kansas City, KS (913) 236-3470; Philadelphia, PA (215) 951-5398; San Francisco, CA (415) 974-7228; Washington, D.C. (202) 786-8000. iT H T T toiP O j HOW TO COMPLETE THE NOC FORM B e lo w a re s a m p le s o f a p a p e r N O C fo rm a n d a n E n try R e g is te r. Using the corresponding reference number for each data element, match the information requested on the NOC form to the data found on the Entry Register. T h e lo c a t io n o f th e d a ta o n y o u r E n try R e g is te r m a y b e d if f e r e n t fr o m th e s a m p le . A ll in f o r m a tio n m u s t b e c o p ie d le f t j u s t if ie d o n th e N O C fo rm , N otification of Change Form p r e c is e ly a s it w a s o r ig in a te d b y th e G o v e rn m e n t. D a ta e le m e n ts 1-5 a n d 7 -1 3 o n th e N O C fo r m m u s t b e c o p ie d lit e r a lly fr o m th e E n try R e g is te r; d a ta e le m e n ts 6 a n d 14 o n th e N O C fo r m a re w h e re th e n e w c h a n g e in fo r m a tio n m u s t b e e n te r e d . Traca Numbar 0 |£ NOTIFICATION OF CHANGE (Type or Print Legibly) h2 |< ? ,3 |£ ,0 Effaetlva E ntry Data M onth Day Yaar Ooebit ^C redit-----( ? ) ® O R IG IN A TE D B Y : Company Neme . 3,9,4 - © US* i£ i £ i £ i £ i £ i£ i £ i£ i £ Chan pa F laid 1 £ i£ |£ , £ |£ i£ |£ i£ , £ j£ Company ID ? I< ? |7 |£ |£ T < |3 12 . | / | / | / | © Company Descriptive Dete 1 1 1 1 1 1 1 1 1 1 1 FOR THE ACCO UNT O F: Individual ©■ - © | j Change Flald 2 (Required fo r Change Coda 03, -® 3 ,0 ,6 ,3 0 ,3 New or Changed Inform ation 1st field this Inform ation w ith y o u r cuttom ar/am ployoo. Description of changa roquaatad Company Dlscratlonary Data £ - i m e M w e ivu w ru r y b o n ia m e o in v a lid o r OUTOVTOa IfU O rm N TIO n. P I M M r S V l I l d l t * ( i ^ i 3 i^ i 5 7 ^ i 7 | K \9 \A [3 \ 1 1 | I OB t 12 1 1 1 1 1 2nd field (use with C03 only) | Disc Dete IO ® I C jP Sample Individual Nam e © RETURN ED BY: . u_ I I I Receiving D apofltory Financial ln etltu tto n Treneh/AoutJng No. D F I A cc o u n t N um b e r — © ■ (12) L_U Change Reason Code \ ! i& £■ ?!} - ' i - ' i .............................. .... r PAGE 036 9999-9998-3 AUTOMATED CLEARING AND SETTLEMENT FACILITY CITY, STATE ZIP DATE 01/02/89 Entry Register ENTRY RE6ISTER RECEIVING POINT 9999-9998-3 STREET CORNER FINANCIAL INSTITUTION RECEIVING INSTITUTION 9999-9998-3 — (l2 ) STREET CORNER FINANCIAL INSTITUTION © © Sample COMPANY 0 0 0 0 0 0 0 0 0 0 US TREASURY 394 50C SEC 3062036096 SETT 003 0SC 2 ENTRIES EFFECTIVE 01-03-89 PPD (? ) © ® V V ID NUMBER v TRflCE NUMBER \ \ ' 1234567B9AB SSA 062036091234567 123456789A SSA 062036091234569 123456789C1 SSA 062036091234574 CUSTOMER MAHE / JOHN J. JONES' SUE ELLEN SMITH ERIC J. BROWN ,......... © © / (((BATCH TOTALS((( / EEEEEEEEEEEEEEEEEEEE ORIGIN NO. 0620-3609 BATCH ID NO. ® © ® ENTRY )i TYPE \ ACCOUNT NUMBER \ DISC \ \ \ 446813579 DEMAND 'CR 'CP SAVING CR 446813456 446819871 N DEMAND CR ENTRY - ADDENDA COUNT 3 0 DEBIT AMOUNT CREDIT AMOUNT 0.00 0.00 0.00 346.00 261.00 579.00 TOTAL DEBITS 0.00 TOTAL CREDITS 1186.00 Table 2. Other specific Data Element requirements for completing the NOC form. cannot process NOCs that do not meet these requirements. Reference Number * Data Element Name 010289 0000057 0 0 0 0 0 0 0 0 0 0 0 0 Government agencies Remarks 2 Trace Number Copy the complete trace number exactly as it appears on your Entry Register 5 Company Discretionary Data Copy this essential information if it appears on your Entry Register. 6 Change Fields 1 and 2 * Enter the correct information in Change Field 1. Use Change Field 2 only when entering information for Change Reason Code C03. See Table 1 on the reverse side for more information on Code C03. Do not enter text or messages in either Change Field, e.g., “ should be...” or “ s/b...” Enter only the inform ation as it should appear in future ACH entries. 9 Individual ID (Claim Number) Copy all blanks, suffixes, prefixes, alphanumeric characters and trailing/leading zeros exactly as shown on your Entry Register. 10 Discretionary Data Copy this essential information if it appears on your Entry Register. Inform ation in this field is used to route the NOC to the correct processing point. 12 Receiving Depository Financial Institution Routing Transit Number Copy only the Routing Transit Number to which the Government sent the ACH entry. If the RDFI RTN is incorrect, prepare a separate NOC (C02) to correct future entries. 13 DFI Account Number Copy the account number exactly as it appears on your Entry Register. and omit blanks and special characters. 14 Change Reason Code * Financial institutions must enter the appropriate code for the change being requested. See Table 1 on the reverse side for the only Change Codes authorized for Government NOCs. The Change Field(s) inform ation must agree with the Change Reason Code used. Include hyphens ( 7 /8 9 ) ACH FORMS REQUEST Return Item Transmittal Letters Preauthorized Return Item Government ACH Instruction Sheet Notification of Change (NOCs) Bank Name Address Attention _______________________ Telephone No. _______________________ ABA # _______________________ Return Request To: Automated Payments Division Federal Reserve Bank 33 Liberty Street New York, NY 10045 of New York
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