One Cash Letter, One Credit--It's Simple

First Fed Report Goes Online

Falling Prices Make Now a Good Time for ACH Origination

ACH Rule Changes in Store Before Year 2000

Have You Seen the "D" Lately?

ReserveNotes

BranchingOut
New Staff Ready to Serve You

It's Time to Enroll in FCA

Temporary Freeze on New Electronic Connections

As part of the Fed's Y2K preparations, we placed a temporary "freeze" on requests for new electronic connections (i.e., FedLine®, Bulkdata and Computer Interface).

If you want to set up a new electronic connection and implement it this year, we must have received your request by Oct. 1. You also must have submitted requests for contingency connections by Oct. 1 and test them well before the end of the year. We cannot accept changes to existing connections, such as access to new services on a FedLine terminal, from Dec. 18 through Jan. 15, 2000. We also won't install any new connections during this time.

This freeze will help us focus on maintaining reliable service for all customers as the transition to 2000 approaches. We appreciate your support of this policy.

If you want to implement any connection changes or have questions, call the FedLine Help Desk at 1-800-333-0861 and press 1 to speak with an Electronic Access Support representative.

Remember Your Security Agreement!

With the introduction of Triple DES encryption, security procedures have been revised for depository institutions that use FedLine® software. We strongly encourage all institutions to implement Triple DES at their earliest opportunity.

Institutions that choose not to implement Triple DES must have signed and returned revised security agreements (which the Fed mailed in a letter Aug. 30) to Cheryl Whitworth at the Federal Reserve Bank of St. Louis by Sept. 30 unless one of the following is true:

• You are a Computer Interface customer.
• You are a FedLine customer using a link encryptor.
• You do not have online access.

If you use an ACH service provider or have a Fedwire® Third Party Access Agreement, you must execute new security agreements unless the service provider satisfies one of these requirements.

If you have questions on these conditions or need a security agreement, call 1-800-333-0861 or (314) 444-8711 and press 1 to speak with an Electronic Access Support representative.

Check Prices Increase at Branch Offices

In September, the Little Rock, Louisville and Memphis offices increased prices for select forward and return check collection products. As most of you know, costs related to the check processing industry continue to escalate. These price increases reflect rising costs related to a more competitive labor market, technology advancements to improve service and check transportation.

We recognize these increases will impact your operations. However, we hope our check processing services continue to reflect value and quality. For specific details, contact your account executive.

Later Deadline for Interbank Securities Transfers

If you have ever rushed to transfer book-entry securities to another financial institution before Fedwire® closes, now you can breathe a little easier. We have extended the window for interbank securities transfers from 3:30 p.m. to 7 p.m. Eastern time.

These extra 3 1/2 hours give more flexibility to financial institutions that safekeep with other institutions and need to move securities into their pledged accounts late in the day, perhaps to provide collateral or a late-day loan requested from the Discount Window.

The extension is just for deposits and only to pledge collateral for Discount, Payment Systems Risk, Treasury Tax & Loan, Treasury Circulars 154 and 176, and Joint Custody purposes. In addition, transfers must be free of payment and deposited into a restricted account.

For more information, contact Cheryl Whitworth in St. Louis at (314) 444-8612.

Special Forms Ensure Correct Handling of Check Missorts

To ensure the Fed handles your check missorts correctly, we encourage you to use two cash letter forms when forwarding "Not Our Items" (NOIs): one for forward cash items (100497) and one for return items (100498). NOIs are cash items or returns that the Federal Reserve mistakenly charged to your institution and should have presented to another institution.

By using these forms, you will:

• receive more timely credit on missorted items;
• reduce the losses that can occur when items remain uncollected during these delays; and
• enjoy the convenience of bundling multiple missorted items in a single form.

There are no fees associated with these cash letters.

If you have any questions or want a supply of these forms, contact your customer service representative.

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