Modified Procedures for Measuring Daylight Overdrafts
January 8, 1997
Circular No. 10907

To Facilitate Electronic Payment of Federal Taxes

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has revised its policy statement on Payment System Risk, affecting the procedures for measuring daylight overdrafts. Posting times for Treasury investments resulting from electronic federal tax payments have been added to these procedures.

The text of the Board's proposal, as published in the Federal Register of November 18, is available as a (pdf) file. Questions regarding this matter may be directed to Ari Cohen, Senior Financial/Economic Analyst.