Full text of Federal Reserve Bank of New York Circulars : Temporary Suspension of Regulation Q Early Withdrawal Penalty for Disaster Areas in New York

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FEDERAL RESERVE BANK
OF NEW YORK

December 4, 1985

Temporary Suspension of Regulation Q Early Withdrawal Penalty
for Disaster Areas in New York

To A ll Member B anks , and Others Concerned,
in the Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has approved the temporary
suspension — until 12 midnight, April 22, 1986 — of the Regulation Q penalty normally
imposed upon the early withdrawal of time deposit funds, for depositors in the New York
counties of Nassau and Suffolk affected by Hurricane Gloria.
This action will permit a member bank, wherever located, to pay a time deposit before
maturity without imposing the Regulation Q penalty, upon a showing that the depositor has
suffered property or other financial loss in those counties as a result of Hurricane Gloria. The
suspension is retroactive to October 18, 1985.
Printed on the reverse side is the text of the official notice of suspension; it has been
reprinted from the Federal Register of November 26, 1985. Questions thereon may be directed
to our Regulations Division (Tel. No. 212-791-5914).




E. Gerald Corrigan,
President.

(Over)

FEDERAL RESERVE SYSTEM
12C FR Part 217
[Reg. Q; Docket No. R-0559]
Interest on Deposits; Tem porary
Suspension o f Early W ithdrawal
Penalty
a g e n c y : Board of Governors of the
Federal Reserve System.
a c t io n : Temporary suspension of the
Regulation Q early withdrawal penalty.

The Board of Governors,
acting through its Secretary, pursuant to
delegated authority, has suspended
temporarily the Regulation Q penalty for
the withdrawal of time deposits prior to
maturity from member banks for
depositors affected by Hurricane Gloria
in the New York counties of Nassau and
Suffolk.

upon a showing that the depositor has
suffered property or other financial loss
in the disaster areas as a result of
Hurricane Gloria beginning on or about
September 27,1985. A member bank
should obtain from a depositor seeking
to withdraw a time deposit pursuant to
this action a signed statement describing
fully the disaster-related loss. This
statement should be approved and
certified by an officer of the bank. This
action will be retroactive to October 18,
and will remain in effect until 12
midnight, April 22,1986.

summary:

List of Subjects in 12 CFR Part 217

EFFECTIVE DATE:

Advertising, Banks, Banking. Federal
Reserve System, Foreign banking.
In view of the urgent need to provide
immediate assistance to relieve the
financial hardship being suffered by
persons in the counties directly affected
by Hurricane Gloria, good cause exists
for dispensing with the notice and public
participation provisions in section 553(b)
of Title 5 of the United States Code with
respect to this action. Because of the
need to provide assistance as soon as
possible and because the Board’s action
relieves a restriction, there is good cause
to make this action effective
immediately.

October 18,1985.

FOR FURTHER INFORMATION CONTACT

Daniel L. Rhoads, Senior Attorney (202/
452-3711) or Patrick J. McDivitt,
Attorney (202/452-3818), Legal Division,
or }oy W. O'Connell,
Telecommunication Device for the Deaf
(202/452-3244), Board of Governors of
the Federal Reserve System,
Washington, D.C. 20551.
SUPPLEMENTARY INFORMATION: On
October 18,1985, pursuant to section 301
of the Disaster Relief Act of 1974 (42
U.S.C. 5141) and Executive Order 12148
of July 15,1979, the President, acting
through the Director of the Federal
Emergency Management Agency,
designated the counties of Nassau and
Suffolk. New York major disaster areas.
The Board regards the President’s action
as recognition by the Federal
government that a disaster of major
proportions had occurred. The
President’s designation enables victims
of the disaster to qualify for special
emergency financial assistance. The
Board believes it appropriate to provide
an additional measure of assistance to
victims by temporarily suspending the
Regulation Q early withdrawal penalty
(12 CFR 217.4(d)). The Board’s action
permits a member bank, wherever
located, to pay a time deposit before
maturity without imposing this penalty




B y o r d e r o f th e B o a r d o f G o v e r n o r s , a c tin g
th r o u g h its S e c r e ta r y , p u r su a n t to d e le g a t e d
a u th o r ity , N o v e m b e r 2 0 ,1 9 8 5 .W illia m W . W ile s ,

Secretary o f the Board.
[FR D o c . 8 5 -2 8 1 0 8 F ile d 1 1 -2 5 -8 5 ; 8:45 am ]
BILLING CODE 6210-01-M