The Federal Reserve Banks have amended Operating Circular 1, Account Relationships. In addition to a number of minor, technical revisions, the amendments include the following, more substantive changes:
- A new data privacy section that establishes the Reserve Banks’ response program for unauthorized access to sensitive consumer information obtained in the course of providing financial services to depository institutions.
- Section 3.1, entitled “Settlement,” has been revised to make clear that custodial inventory program transactions must settle in an institution’s own master account.
- Section 5.3, entitled “Security Interest,” has been revised to clarify that a Reserve Bank’s security interest in an unrestricted securities account does not include investment property that the account holder may not encumber under applicable law.
The amendments are effective April 1, 2007, and your continued use of Reserve Bank services on or after that date constitutes agreement to the new terms of the operating circular.
See the operating circulars page 
of the Federal Reserve Financial Services website for the official version of the amended operating circular. To request a paper copy of any operating circular, contact your Customer Contact Center.
