To the Chief Executive Officers of All Depository Institutions and Others Concerned in the Second Federal Reserve District:
A binder containing the new Operating Circulars, which we announced in our Circular No. 10985, dated September 26, 1997 has been mailed to DIs in this district. With the exception of the circular on Net Settlement Arrangements, these circulars are now uniform across Federal Reserve districts. This will make it easier for depository institutions to do business with multiple Reserve Banks.
Most of the new circulars, which are contracts between a depository institution and its Reserve Bank, will become effective January 2, 1998. These circulars replace the entire current series of operating circulars.
As a result, all account holders will need to execute a new agreement under Operating Circular No. 1, "Account Relationships," and those account holders that wish to continue to be eligible to borrow from the Bank's Discount Window will also need to execute new agreements under Operating Circular No. 10, "Lending." We will send these agreements under separate cover to the affected institutions and ask that they be executed promptly. Other agreements contained in the current series of operating circulars will remain valid.
Some portions of the old series of operating circulars - Appendices E, F, and G of old Operating Circular No. 4 relating to check service agreements; and procedures in old Operating Circular No. 22, relating to appeals of supervisory decisions - continue in effect and will be reissued in another form at a later date.
The new circulars will not result in significant changes for most institutions. To help identify the changes, however, we have included a summary of each operating circular. These summaries give a brief description of the critical changes in, or highlight the key provisions of, the new circulars.
Please note that the Treasury has proposed to adopt revisions to 31 CFR Part 203. As we have already incorporated those revisions in Operating Circular No. 9, "Federal Tax Payments and Treasury Tax and Loan Depositaries," the effective date for this circular will be either January 2, 1998, or the effective date of Treasury's pending revisions, whichever is later. In addition, some provisions of Operating Circular No. 6, "Funds Transfers Through Fedwire," in connection with expanded Fedwire funds transfer operating hours, will become effective December 8, 1997.
This Bank will not issue a new operating circular regarding the collection of noncash items, such as municipal securities and interest coupons. After January 2, these collections will be handled solely by the Jacksonville Branch of the Federal Reserve Bank of Atlanta. The Atlanta Bank will distribute copies of a new noncash operating circular to current senders and paying agents. Copies can be obtained from the Noncash Collection Department of the Jacksonville Branch. We will continue to accept settlement entries for such transactions for senders and paying agents, or their correspondents, who maintain an account in this District, as specified in Operating Circular No. 1, "Account Relationships."
In addition to the binder, circulars and summaries, a set of tabs and a list containing the names of contacts for each operating circular are included, should you need more information about a particular service. To order additional copies of a particular operating circular or for general questions about these changes, please contact Ed Rooney of our Public Information Department.