Full text of Federal Reserve Bank of New York Circulars : Reasons for Charge Bank of Unpaid Checks Drawn on Eatontown National Bank, Eatontown, N.J.

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F e d e r a l

R e s e r v e
N ew

B a n k

Y o r k , N.Y.

AR EA CODE

2 12

o f

N e w

Y o r k

10045

7 3 2 -5 7 0 0

August 14, 1970
Reasons for Charge Back of Unpaid Checks
Drawn on Eatontown National Bank, Eatontown, N.J.
To the Member Banks and Nonmember Clearing Banks
of the Second Federal Reserve District:

On Monday, August 10, 1970, we informed you, in connection with
the closing of the Eatontown National Bank, Eatontown, N.J., that under the
provisions of Regulation J of the Board of Governors of the Federal Reserve
System (12 CFR 210) we would charge back items included in our cash letters
to the Eatontown National Bank for which we had not received payment in
actually and finally collected funds, and that we would also charge back
and return items received by us which were not presented to the Eatontown
National Bank on account of its insolvency.
We regret the difficulties that this is causing for our sending
banks and their depositors. For this reason, we think we should inform you
that the foregoing course of action was necessary because the Eatontown
National Bank did not effect payment for our cash letters of August 4, 1970
and thereafter, even though, we understand, the Eatontown National Bank had
posted the charges for the checks in our August 4, 5, and 6 cash letters to
the accounts of the drawers. Whether we will be able to obtain and return
to you the items included in those cash letters is at this time uncertain.
We are also attempting to obtain photographic copies of the items
being charged back and, if we are successful, we will so advise you.
We are making every effort to complete the task of charging back
the items but it may be another week before this can be accomplished.




ALFRED HAYES,
P re s id e n t.