Regulation J - Collection Of Checks
June 6, 1997
Circular No. 10956

Proposed Amendments to Ease Transition to Interstate Banking

Comments Requested by July 21

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

The following is from a statement issued by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has issued proposed amendments to Regulation J to help ease the transition to interstate branching in the check collection area. Comments should be received by July 21.

Comment has already been requested on regulatory proposals to define the location of a depository institution for purposes of maintaining a single reserve account for a multi-district institution and for Federal Reserve membership.

Under the proposed amendments, an institution could send checks to any Reserve Bank for collection, but all of its check collection transactions through the Federal Reserve would be reflected in a single account held at its "Administrative Reserve Bank," no matter where the institution has its branches.

The text of the Board's proposal, as published in the Federal Register of May 20 is available as a (pdf) file. Comments thereon should be submitted by July 21, 1997, and may be sent to the Board, as specified in the notice, or, at this bank, to Matthew J. Puglisi, Vice President, Check Function.