ReserveNotes

FedLine Moving to Triple DES

When the Fed converts its FedLine® software to Windows NT®, we will move to an enhanced encryption environment. All electronic connection customers will be switched to an advanced application of the Data Encryption Standard (DES) called Triple DES. Triple DES will enable the Reserve Banks to electronically change encryption keys more frequently, which will offer significantly improved security over our current environment.

To implement Triple DES, we will replace your current encryption board with a new one when you convert to FedLine for Windows NT. Our Computer Interface customers will receive a new link encryptor. You can learn more about Triple DES at our informational seminars on FedLine NT, planned for this fall. If you have questions in the meantime, please contact Gary Auer in St. Louis at (314) 444-8948.

Comments Requested on Same-Day Settlement Rule

Earlier this year, the Federal Reserve Board released a request for public comment on the implications of potential modifications to the 1994 same-day settlement rule. In short, the Board is proposing to extend the current 8 a.m. presentment deadline for private-sector collecting banks to 2 p.m.

The proposed changes are designed to reduce or eliminate legal disparities between the Federal Reserve and private-sector banks in the presentment and settlement of checks. Comments are due to the Board of Governors by July 17. If you would like a copy of the proposed rule, please contact Cheryl McCarthy in St. Louis at (314) 444-8459.

Extensive Educational Campaign Planned for New $20 Bill

Later this year, the U.S. Treasury will roll out the redesigned $20 bill. The design will be similar to the new $50 and $100 bills already in circulation. The $20 bill will be the first redesigned bill many Americans see, and it will serve as the test for determining widespread acceptance of the new currency.

The popularity of $20 bills generated an extensive public education effort, which will include sending educational materials to schools, as well as phone and mail communication with the nation's top retailers, financial institutions, shopping mall operators and other organizations.

For more information, please contact Gladys Butler in St. Louis at (314) 444-8330 or Bob Simpson at (314) 444-8329.

Teaming Up With Technology Seminars Coming to the Branches

This fall, the Little Rock and Memphis offices will host Teaming Up With Technology seminars with the Independent Bankers Association of America. These seminars, which were given in St. Louis and Louisville earlier this year, discuss issues important to community bankers, such as electronic check presentment, EFT 99 and check imaging.

This is a great opportunity to learn about all these topics in one place, as well as visit with some software vendors. One banker who attended the St. Louis seminar stated, "This was one of the most useful and interesting seminars I have been to." Don't miss out when they are offered in your area: Sept. 1--Memphis; Sept. 2--Little Rock. For more information, contact Carrie Andert in St. Louis at (314) 444-8946.

Our Liaisons Help Your Merger Run Smoothly

Because the Fed is assisting with an increasing number of bank mergers, we understand how difficult it can be to combine the operations of multiple financial institutions. To help make the transition easier for you, two Fed staff members work full-time to coordinate mergers in the District.

They act as your liaisons to the other departments in the Fed office and will ensure all merger procedures are being followed correctly. Please contact one of these individuals if your financial institution is part of a merger: Max Butler at (314) 444-8465 or Norman Broska at (314) 444-4290.

Reminder to Fedwire Customers

This past spring, all Fedwire customers received new codeword listings that became effective May 1.

To activate these codewords, your signed acknowledgment form must be returned to us.

If you haven't acknowledged receipt of the codewords, please sign and mail the form to Flora Armon at the St. Louis Fed.

We can't process your offline transfers until we receive this form. This is important for online customers too, because it ensures that wires can be originated and received in contingency situations. In an effort to keep our records current, we also need your updated offline transfer authorization form and codeword acknowledgment card. If you have questions on any of these forms, please contact Flora Armon at (314) 444-8612.

Utility Fliers Available for St. Louis Institutions

This year the St. Louis office is partnering with seven St. Louis utility and service companies to promote the automated bill payment of recurring consumer bills. As part of this effort, staff from these organizations and the Fed have been distributing direct payment sign-up forms at participating companies and answering employee questions.

In conjunction with this campaign, a promotional sign-up flier was developed listing all companies involved in the promotion. Many St. Louis area financial institutions have ordered supplies to insert in account statements or display in their lobbies. The fliers are available at cost for $15 per 1,000. To order your supply, contact Carrie Andert in St. Louis at (314) 444-8946.

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