Full text of Federal Reserve Notes : July 1984

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July 1984

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POLICY DEVELOPMENTS
Non-Standard

Holiday Float

Procedures for recovering non-standard holiday float have been established by the San Francisco
Bank and took effect July 1, 1984. Non-standard holidays are specific holidays on which the Reserve
Office is open, but on which some or all of the depository institutions in its territory are closed.
Direct and consolidated depositors will be charged specifically for the float incurred on items
drawn on paying banks that are closed on a designated non-standard holiday.
Mixed and other Fed deposits that contain items drawn on institutions closed for designated non
standard holidays will receive deferred credit on those items.

For further information, including a list of non-standard holidays, please contact the Check Officer
at your local Federal Reserve Office.
Modified High
Dollar Group Sort

On April 23, 1984, the Federal Reserve System implemented a new service, known as the High Dollar
Group Sort (HDGS), to accelerate the collection of checks. The program offers depository institu
tions opportunities to obtain better availability on checks drawn on certain institutions not in
Reserve Bank cities, and to reduce their total costs incurred in collecting these checks. Since then,
the Fed has made a number of modifications including revising HDGS deposit deadlines at certain
Reserve offices.

The most recent modifications took effect July 23, 1984. They included several new presentment

points, a small number of changes in fees and deadlines, a reduction in the minimum dollar amount
for notification of rejected items, and a change in the operation of the service on Monday mornings.
There are, however, no changes in the Twelfth District's presentment points, prices or deposit
deadlines.

For further information, please contact the Check Officer in the Federal Reserve office serving your
institution: Douglas Knudsen in San Francisco at (415) 974-2069; Ross Ashman in Los Angeles at
(213) 683-8351; Dean Gonnerman in Portland at (503) 221-5903; Robert Richards in Salt Lake City
at (801) 322-7887; Edward Bonheur in Seattle at (206) 442-5105.
REGULATIONS AND OPERATIONS UPDATE

Regulation L —
Interlocking Bank
Directorates

The Federal Reserve Board has amended Regulation L to make it conform to recent legislation that
deleted from the Depository Institutions Management Interlocks Act all references to "Standard
Metropolitan Statistical Areas." The Board substituted the new classifications now in use by the
Federal Office of Management and Budget. All other regulators of depository institutions have
similarly amended their regulations.

The text of the Federal Register notice is available from our Corporate Services Department at (415)
974-2752. For further information, please contact Robert Johnston in Supervision, Regulation and
Credit at (415) 974-2352.
New List of
OTC Stocks

A new list of over-the-counter (OTC) stocks subject to the Federal Reserve Board's margin regulations
took effect June 18, 1984. The new list supersedes previous lists and amendments. For further in

formation, please contact David Vandre in Consumer Affairs at (415) 974-2965.

FOR PUBLIC COMMENT

Regulation K —

The Federal Reserve Board requests comment by September 12, 1984, on proposed revisions to

International

Regulation K concerning chiefly the international operations of U.S. banking organizations. The
proposed revisions are intended to ensure that Edge and Agreement Corporations are competitive
under prevailing economic conditions and banking practices. As such, the proposals deal with activ
ities allowed Edge Corporations within the U.S., procedures for approval of investments by Edge

Banking

Corporations, and procedures with respect to change of control of Edge Corporations.

For further information, please contact Rodney Reid in Supervision, Regulation and Credit at (415)
974-2266.

Reducing Risk in
Large-Dollar
Wire Transfers

In April, 1984, the Federal Reserve Board requested comment on a wide variety of measures to

reduce risk in the operations of large-dollar wire transfer systems. The original deadline for comment
was July 17, 1984. The comment period has been extended to October 29, 1984. For further infor
mation, please contact John Carson, Senior Vice President at (415) 974-2131.

Fractional

Availability
Crediting

The Board is requesting comment by September 7, 1984, on a proposal to modify or eliminate the
"Fractional Availability Crediting" option for the recovery of interterritory check float. Pending a final
decision, no institutions will be allowed to begin using the option. For further information, please
contact Doug Knudsen in Check Services at (415) 974-2069.