33732 Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices

1See ‘‘Federal Reserve Policy Statement on

Payments System Risk,’’ section I.A (57 FR 47093,

October 14, 1992).

2 31 CFR part 203 ‘‘Payment of Federal Taxes and

the Treasury Tax and Loan Program’’ requires that

TT&L depositaries pledge to Treasury sufficient

collateral to protect the uninsured portion of

Treasury tax proceeds and the full value of Treasury

investments held at the depositaries.

3For purposes of this notice, ‘‘Fedwire’’ refers to

the electronic funds transfer system owned and

operated by the Federal Reserve System. See 31

CFR part 203 for further detail regarding electronic

tax payment alternatives.

4Treasury currently requires that business

taxpayers with an annual tax liability of $200,000

or more pay their income, withholding, and other

federal taxes by electronic means no later than the

tax due date. Other taxpayers are encouraged to use

electronic means, but have the option of submitting

their tax payment information using a paper Federal

Tax Deposit (FTD) coupon. See 26 CFR parts 1, 20,

25, 31, and 40 regarding ‘‘Electronic Funds

Transfers of Federal Deposits.’’

5 Government monies can be held at depository

institutions for a variety of reasons. Initially, TIP

will monitor collateral pledged pursuant to 31 CFR

part 202 ‘‘Depositaries and Financial Agents of the

Government’’ and 31 CFR part 203. 6FedLine is the Federal Reserve’s proprietary PC

software that offers depository institutions access to

Federal Reserve services such as accounting, ACH,

book-entry, cash, check, statistical reporting, funds

transfer, and Treasury services.

FEDERAL RESERVE SYSTEM

[Docket No. R–1068]

Policy Statement on Payments System

Risk: Modifications to Daylight

Overdraft Posting Procedures

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Policy Statement.

SUMMARY: The Board has adopted

changes to the procedures for measuring

daylight overdrafts. Posting times for

Treasury Investment Program

transactions have been added to these

procedures to implement program

changes announced by Department of

the Treasury in today’s Federal

Register.

EFFECTIVE DATE: July 10, 2000 for

transitional posting procedures and

November 2, 2000 for final posting

procedures.

FOR FURTHER INFORMATION CONTACT:

Myriam Payne, Manager (202/452–

3219), Stacy Coleman, Financial

Services Analyst (202/452–2934), or

Donna DeCorleto, Project Leader (202/

452–3956), Division of Reserve Bank

Operations and Payment Systems; for

the hearing impaired only:

Telecommunications Device for the

Deaf, Janice Simms (202/872–4984).

SUPPLEMENTARY INFORMATION:

Background

The Board’s Policy Statement on

Payments System Risk establishes

maximum limits (net debit caps) and

fees on daylight overdrafts in depository

institutions’ accounts at Federal Reserve

Banks. The Federal Reserve measures

depository institutions’ intraday

account balances according to a set of

‘‘posting rules’’ established by the

Board. These rules comprise a schedule

for the posting of debits and credits to

institutions’ Federal Reserve accounts

for different types of payments.1 The

Board’s objectives in designing the

posting rules include minimizing

intraday float, facilitating depository

institutions’ monitoring and control of

their cash balances during the day, and

reflecting the legal rights and

obligations of parties to payments. The

Board has established daylight overdraft

posting times for the new Treasury

Investment Program (TIP) transactions

based on these objectives.

The Federal Reserve will implement

TIP on July 10, 2000, to replace the

Treasury Tax and Loan (TT&L) system.

The Reserve Banks, as fiscal agents and

depositories of the United States, act on

behalf of the Department of the Treasury

(Treasury) to collect Federal taxes and

invest excess Treasury balances with

depository institutions. The Reserve

Banks use the TT&L system to collect

and invest Federal tax proceeds and to

monitor the collateral pledged by

institutions.2 TT&L is primarily an endof-day batch processing system

implemented in the mid-1980s to

process paper-based tax payments.

In 1993, the North American Free

Trade Agreement Implementation Act

(NAFTA) required Treasury to begin an

orderly conversion from its paper-based

system to an electronic tax collection

system to accelerate the availability of

its funds. In 1996, Treasury introduced

the Electronic Federal Tax Payment

System (EFTPS) to offer taxpayers

electronic payment alternatives, such as

the Automated Clearing House (ACH)

and Fedwire.3 The Reserve Banks

modified the TT&L automated

application to accept and invest tax

proceeds collected through EFTPS. The

aging technology of the TT&L

application, however, limited

opportunities to automate tax collection

further. As a result, the Reserve Banks

worked with Treasury to design the TIP

application to support Treasury’s

changing tax collection and investment

requirements.

Treasury envisioned an all-electronic

tax collection system when TIP was

developed but later determined that a

paper-based tax payment alternative

should be available to smaller business

taxpayers.4 At Treasury’s request, the

Federal Reserve developed the Paper

Tax System (PATAX) to accommodate

paper-based tax payments. The Federal

Reserve will implement the TIP and

PATAX applications concurrently.

An important feature of the TIP

application is its ability to receive and

process data from interfacing

applications in real time. Throughout

the day, TIP will receive and process

payment information from EFTPS, the

Federal Reserve Electronic Tax

Application (FR–ETA), and PATAX,

and collateral information from the

National Book-Entry System (NBES) and

the Definitive Safekeeping System

(DSS). The Federal Reserve will adjust

the total Treasury balances at depository

institutions based on Treasury’s cash

needs and depository institutions’

willingness and ability to collateralize

Treasury investments. In addition, TIP

will monitor the value of collateral

pledged to protect government monies

held at depository institutions for other

Treasury purposes besides tax

collections and investments.5 The

Federal Reserve will be able to reduce

those balances at depository institutions

if the value of collateral is insufficient

to protect those monies.

TIP-Related Daylight Overdraft Posting

Rule Changes

Unlike TT&L, TIP will process

transactions throughout the day and

depository institutions will be able to

access information on the status of TIP

transactions destined for their Federal

Reserve accounts through their FedLine

terminals.6 Therefore, in accordance

with the Board’s objective to minimize

intraday float, the Board believes the

TIP transactions should post to

depository institutions’ accounts in real

time throughout the day.

Currently, because TT&L is primarily

an end-of-day batch processing system,

the Reserve Banks post TT&L

transactions resulting in debits to

depository institutions’ accounts after

the close of Fedwire. TIP will process

transactions throughout the day,

however, allowing the Reserve Bank to

post TIP-related transactions on a flow

basis in order to match more closely the

actual TIP processing times. In the near

term this change could make controlling

daylight overdrafts related to some TIP

transactions more challenging for

depository institutions. For example,

with near real-time posting under TIP,

a large debit transaction could post to a

depository institution’s account early in

the day and create a considerable

daylight overdraft. Under TT&L, the

debit transaction would post after the

close of Fedwire, providing the

depository institution ample time to
Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices 33733

7The Reserve Banks will post small-dollar

transactions, such as uninvested PATAX tax

deposits and penalties for tax payments, on a flow

basis as they are processed beginning July 10, 2000.

The posting rules for these transactions will not

change in the second phase.

8The Board has not modified the posting rules for

existing TT&L transactions unless specifically

referenced in this notice.

9While TIP begins processing transactions as

early as 6 a.m. ET, the Federal Reserve will not

begin posting transactions until 8:30 a.m. ET in

order to match the initial posting of other non-wire

transactions and to allow depository institutions

time to manage or fund their accounts.

10The balances that Treasury invests with

depository institutions are payable on demand

without prior notice. Treasury may announce these

balance withdrawals, however, hours or days in

advance. See 31 CFR 203.23.

11On rare occasions, the Treasury may announce

withdrawals in advance that are based on

depository institutions’ closing balances on the

withdrawal date. The Federal Reserve will post

these withdrawals after the close of Fedwire.

12 In the event that Thursday is a holiday, the

Reserve Banks will identify and notify depository

institutions with Treasury-authorized penalties on

the following business day. Penalties will then be

posted on the business day following notification.

13 Depository institutions specify the times of day

and the amount of funds they are willing to accept

as investments. Funds are distributed pro-rata based

on depository institutions’ capacity levels.

fund its account. As a result, depository

institutions may find managing their

daylight overdrafts more difficult until

they become familiar with TIP’s

processing patterns.

The Board recognizes that depository

institutions may need time to change

the systems or procedures they use to

fund their accounts and monitor their

tax payment flows. For this reason, the

Board will introduce the TIP-related

posting rule changes for most

transactions resulting in debits to

depository institutions’ accounts in two

phases.7 To allow sufficient time for

depository institutions to adjust to the

various operational changes associated

with TIP, initially the Federal Reserve

will post most transactions resulting in

debits to depository institutions’

accounts after the close of Fedwire.

Approximately four months after the

implementation of TIP, on November 2,

2000, the Federal Reserve will post all

transactions resulting in debits to

depository institutions’ accounts on a

flow basis as TIP processes them. The

Board believes that this approximate

four-month transition period, which

covers a full quarterly business tax

payment cycle, provides depository

institutions with sufficient time to

identify the effects of and adjust to the

new debit timing patterns that TIP

creates.

Debits to Depository Institutions 8

After-the-Close-of-Fedwire Posting

Beginning July 10, 2000 the Federal

Reserve will post the TIP transactions

listed below, resulting in debits to

depository institutions’ Federal Reserve

accounts, after the close of Fedwire. The

Reserve Banks will provide depository

institutions with information on their

TIP transactions through FedLine,

which will allow depository institutions

to observe and become familiar with the

actual TIP processing cycles. Beginning

November 2, 2000, the Reserve Banks

will post these transactions on an

intraday basis to reflect more closely the

actual TIP processing times. Unless

stated otherwise in this notice, the

Reserve Banks will begin posting TIPrelated transactions at 8:30 a.m. ET and

on an hourly basis, on the half-hour,

thereafter.9

Main Account System-Initiated

Balance Limit Withdrawal. This

transaction withdraws from a depository

institution’s account any amount that

exceeds its balance limit. A depository

institution’s balance limit is the amount

of Treasury funds that it is willing to

accept as investments and may be

changed at any time.

Main Account System-Initiated

Collateral Deficiency Withdrawal. This

transaction withdraws from a depository

institution’s account any amount that is

not protected by collateral.

Main Account Treasury Withdrawal.

This transaction withdraws some or all

of Treasury’s invested balances from a

depository institution’s Federal Reserve

account.10 TIP will process the

transactions on the date and time

specified by Treasury. The Federal

Reserve will post future-day

withdrawals at 8:30 a.m. ET on the

settlement day designated by Treasury,

same-day withdrawals announced by

11:30 a.m. ET at 1:00 p.m. ET, and

same-day withdrawals announced by

6:15 p.m. ET after the close of

Fedwire.11

31 CFR Part 202 Collateral Deficiency

Withdrawal. Under 31 CFR part 202

(formerly called Circular 176), Treasury

permits authorized depository

institutions to hold fully collateralized

deposits of public monies for

government agencies. Under TIP,

Treasury has centralized the monitoring

of the collateral pledged to protect 31

CFR part 202 deposits and requires that

collateral be assessed at market value.

At the discretion of the depositing

government agency, this transaction will

withdraw from the depository

institution’s account any amount not

protected by collateral. TIP will identify

deficiencies between 7:00 a.m. and 6:00

p.m. ET, and the Reserve Bank will

work with the depository institutions

and the depositing government agencies

to resolve the deficiencies. If a

deficiency is not corrected before the

end of the day, the Federal Reserve may

debit the depository institution’s

account for the uncollateralized amount.

Near Real-Time Posting

Beginning July 10, 2000, the Federal

Reserve will post the TIP transactions

listed below, resulting in debits to

depository institutions’ account

balances, on an intraday basis during

the day as soon as TIP processes them.

The Board does not believe depository

institutions require a transitional period

for these transactions’ posting times

given their relatively small dollar value.

Uninvested PATAX Tax Deposit. This

transaction withdraws from depository

institutions’ accounts the proceeds of

PATAX tax collections that will not be

invested with those institutions. The

Reserve Banks will post these

transactions beginning at 8:30 a.m. ET

and on an hourly basis, on the halfhour, thereafter.

Penalty for Tax Payments. Treasury

will use this transaction to assess a

penalty any time that a depository

institution accepts a timely payment

from a taxpayer, but submits the

payment to the Treasury late. Every

Thursday night, the Reserve Banks will

identify and notify depository

institutions of their Treasury-authorized

penalties.12 The Reserve Banks will

calculate the penalty for each depository

institution and post the debit to the

depository institution’s account at 8:30

a.m. ET on the following business day.

Credits to Depository Institutions

Beginning July 10, 2000, the Federal

Reserve will post the TIP transactions

listed below, resulting in credits to

depository institutions’ accounts, on an

intraday basis during the day as soon as

TIP processes them.

Dynamic Investment. The Dynamic

Investment is a new transaction that

will invest excess Treasury funds with

depository institutions that want the

funds and have sufficient collateral to

protect the investment.13 The Reserve

Banks will post these transactions

beginning at 12:30 p.m. ET and on an

hourly basis, on the half-hour,

thereafter.

FR–ETA Value Fedwire Investment.

The FR–ETA Value Fedwire Investment

is a new transaction that will return to

depository institutions, as a Treasury

investment, the tax proceeds that the

institutions sent to Treasury through a

FR–ETA Value Fedwire transaction (31

CFR 203.2). TIP will identify those FR–
33734 Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices

14A Retainer institution will collect tax payments

using FR–ETA, EFTPS, and/or PATAX, and will

accept back in its Main Account, as Treasury

investments, only the amount it collected. The

Main Account replaces the TT&L account under

TIP. An Investor institution will collect tax

payments using ETA, EFTPS, and/or PATAX,

accept those funds as a Treasury investment, and

also accept other Treasury investments to its Main

Account up to capacity.

15For example, a Retainer or Investor institution

with sufficient collateral that sends an FR–ETA tax

payment at 11:45 a.m. ET will receive an FR–ETA

Value Fedwire Investment at 12:30 p.m. ET.

16 In the event that Thursday is a holiday, TIP

will process Treasury-authorized penalty

abatements on the following business day.

17The Special Direct Investment Account is

define din 31 CFR part 203.

18The TIP application receives notice of a merger

the day the merger occurs and therefore cannot

combine merged accounts after the close of Fedwire

prior to the merger day. In addition, the TIP

operations staff must determine whether the

surviving entity will accept the non-surviving

entity’s account balance and has the capacity to do

so.

3The posting changes do not affect the overdraft

restrictions and overdraft-measurement provisions

for nonbank banks established by the Competitive

Equality Banking Act of 1987 and the Board’s

Regulation Y (12 CFR 225.52).

4The Reserve Banks will identify and notify

depository institutions with Treasury-authorized

penalties on Thursdays. In the event that Thursday

is a holiday, the Reserve Banks will identify and

notify depository institutions with Treasuryauthorized penalties on the following business day.

Penalties will then be posted on the business day

following notification.

5Settlement entries from the ‘‘settlement sheet’’

service will be posted on the next clock hour

approximately one hour after settlement data are

received by the Reserve Banks. The settlement sheet

service will be discontinued by year-end 2001.

Settlement entries from the enhanced settlement

service will be posted on a flow basis as they are

processed.

6Original issues of government agency securities

are delivered as book-entry securities transfers and

will be posted when the securities are delivered to

the purchasing institutions.

7Letters-of-credit transactions are drawdowns of

government grants.

8The Reserve Banks will process and post

Treasury-authorized penalty abatements on

Thursdays. In the event that Thursday is a holiday,

ETA tax payments that were sent by

Retainer or Investor institutions with

unused capacity and will invest the

funds with those Retainer or Investor

institutions.14 The Reserve Banks will

post these transactions beginning at 9:30

a.m. ET and on an hourly basis, on the

half-hour, thereafter.15

Penalty Abatement. The Penalty

Abatement is a new transaction that

Treasury will use to return money paid

previously as penalties by a depository

institution to Treasury. In the event that

a depository institution provides

evidence that the Treasury charged it

incorrectly, Treasury may return the

penalty money to the depository

institution. The Reserve Banks will

process and post Penalty Abatements on

Thursdays at 6:30 p.m. ET.16

Main Account Administrative

Investment and SDI Administrative

Investment. These transactions are

administrative or correcting entries that

Reserve Banks will occasionally make to

depository institutions’ Main Accounts

or Special Direct Investment

Accounts.17 For example, after two

entities merge, the Reserve Banks would

use one of the Main Account

Administrative Investment transactions

to move the non-survivor’s TIP account

balance to the survivor’s account.18 The

Reserve Banks will post these

transactions at 8:30 a.m. ET and on an

hourly basis, on the half-hour,

thereafter.

31 CFR Part 202 Account Deposits.

The 31 CFR part 202 Account Deposit

is a new transaction that will place

public monies with depository

institutions authorized by Treasury to

accept these deposits, but only after TIP

confirms that the depository institutions

have pledged sufficient collateral to

protect these deposits. Based on

Treasury’s or the depositing agency’s

instruction, the Reserve Banks will post

these transactions at 8:30 a.m. ET and

on an hourly basis, on the half-hour,

thereafter.

Paperwork Reduction Act

In accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. ch.

3506; 5 CFR 1320 Appendix A.1), the

Board has reviewed the policy statement

under the authority delegated to the

Board by the Office of Management and

Budget. No collections of information

pursuant to the Paperwork Reduction

Act are contained in the policy

statement.

Policy Statement on Payments System

Risk

1. The ‘‘Federal Reserve Policy

Statement on Payments System Risk’’

(57 FR 47093, October 14, 1992), section

I.A., under the heading ‘‘Modified

Procedures for Measuring Daylight

Overdrafts ’’ is amended, effective July

10, 2000, as follows with changes

identified by italics:

I. Federal Reserve Policy

A. Daylight Overdraft Definition

* * * * *

Modified Procedures for Measuring Daylight

Overdrafts 3

Opening Balance (Previous Day’s Closing

Balance)

Post at 8:30 a.m. Eastern Time:

+/¥Government and commercial ACH

credit transactions

+Treasury Electronic Federal Tax Payment

System (EFTPS) investments from ACH

credit transactions

+ Advance-notice Treasury investments

+ Treasury state and local government

series (SLGs) interest and redemption

payments

+ Treasury checks, postal money orders,

local Federal Reserve Bank checks, and

EZ-Clear savings bond redemptions in

separately sorted deposits

¥ Penalty Assessments for tax payments

from the Treasury Investment Program

(TIP) 4

Post at 8:30 a.m. Eastern Time and Hourly,

on the Half-Hour, Thereafter:

+ Main Account Administrative Investment

from TIP

+ SDI (Special Direct Investment) or

Administrative Investment from TIP

+ 31 CFR part 202 Account Deposits from

TIP

¥ Uninvested PATAX Tax Deposits from

TIP

Post Throughout Business Day:

+/¥Fedwire funds transfers

+/¥Fedwire book-entry securities transfers

+/¥Net settlement entries 5

Post by 9:15 a.m. Eastern Time:

+ U.S. Treasury and government agency

book-entry interest and redemption

payments

+ U.S. Treasury and government agency

matured coupons and definitive

securities received before the maturity

date

Post Beginning at 9:15 a.m. Eastern Time:

¥ Original issues of Treasury securities 6

Post at 9:30 a.m. Eastern Time and Hourly,

on the Half-Hour, Thereafter:

+ FR–ETA Value Fedwire Investments from

TIP

Post at 11:00 a.m. Eastern Time:

+/¥ACH debit transactions

+ EFTPS investments from ACH debit

transactions

Post at 11:00 a.m. Eastern Time and Hourly

Thereafter:

+/¥Commercial check transactions,

including return items

+/¥Check correction amounting to $1

million or more

+ Currency and coin deposits

+ Credit adjustments amounting to $1

million or more

Post at 12:30 p.m. Eastern Time and Hourly,

on the Half-Hour, Thereafter:

+ Dynamic Investment from TIP

Post by 1:00 p.m. Eastern Time:

+ Same-day Treasury investments

Post at 2:00 p.m. Eastern Time:

+ Processed manual letters of credit 7

Post at 5:00 p.m. Eastern Time:

+ Treasury checks, postal money orders,

and EZ-Clear savings bond redemptions

in separately sorted deposits. These

items must be presented by 4:00 p.m.

eastern time.

+ Local Federal Reserve Bank checks.

These items must be presented before

3:00 p.m. eastern time.

+ Processed manual letters of credit

+/¥Same-day ACH transactions. These

transactions include ACH return items,

check-truncation items, and flexible

settlement items.

Post at 6:30 p.m. Eastern Time: 8
Federal Register / Vol. 65, No. 101 / Wednesday, May 24, 2000 / Notices 33735

the Reserve Banks will process and post Treasuryauthorized penalty abatements on the following

business day.

9On rare occasions, the Treasury may announce

withdrawals in advance that are based on

depository institutions’ closing balances on the

withdrawal date. The Federal Reserve will post

these withdrawals after the close of Fedwire.

3The posting changes do not affect the overdraft

restrictions and overdraft-measurement provisions

for nonbank banks established by the Competitive

Equality Banking Act of 1987 and the Board’s

Regulation Y (12 CFR 225.52).

4The Reserve Banks will identify and notify

depository institutions with Treasury-authorized

penalties on Thursdays. In the event that Thursday

is a holiday, the Reserve Banks will identify and

notify depository institutions with Treasuryauthorized penalties on the following business day.

Penalties will then be posted on the business day

following notification.

5On rare occasions, the Treasury may announce

withdrawals in advance that are based on

depository institutions’ closing balances on the

withdrawal date. The Federal Reserve will post

these withdrawals after the close of Fedwire.

6Settlement entries from the ‘‘settlement sheet’’

service will be posted on the next clock hour

approximately one hour after settlement data are

received by the Reserve Banks. The settlement sheet

service will be discontinued by year-end 2001.

Settlement entries from the enhanced settlement

service will be posted on a flow basis as they are

processed.

7Original issues of government agency securities

are delivered as book-entry securities transfers and

will be posted when the securities are delivered to

the purchasing institutions.

8Letters-of-credit transactions are drawdowns of

government grants.

9The Reserve Banks will process and post

Treasury-authorized penalty abatements on

Thursdays. In the event that Thursday is a holiday,

the Reserve Banks will process and post Treasuryauthorized penalty abatements on the following

business day.

+ Penalty Abatements from TIP

Post After the Close of Fedwire Funds

Transfer System:

+/¥All other non-Fedwire transactions.

These transactions include the following:

local Federal Reserve Bank checks

presented after 3:00 p.m. eastern time,

but before 3:00 p.m. local time; noncash

collections; credits for U.S. Treasury and

government agency definitive security

interest and redemption payments if the

coupons or securities are received on or

after the maturity date; Treasury

Investment Program Main Account

Balance Limit Withdrawals and

Collateral Deficiency Withdrawals; Main

Account Treasury Withdrawals; 9 31 CFR

part 202 Deficiency Withdrawals;

subscriptions for SLGS; currency and

coin shipments; small-dollar credit

adjustments; all debit adjustments; and

small-dollar check corrections. Discountwindow loans and repayments are

normally posted after the close of

Fedwire as well; however, in unusual

circumstances a discount window loan

may be posted earlier in the day with

repayment 24 hours later, or a loan may

be repaid before it would otherwise

become due.

Equals:

Closing balance

* * * * *

2. Footnotes 7 through 29 are renumbered

10 through 32.

I. Federal Reserve Policy

A. Daylight Overdraft Definition

Policy Statement on Payments System Risk

3. The ‘‘Federal Reserve Policy Statement

on Payments System Risk,’’ (57 FR 47093,

October 14, 1992) section I.A., under the

heading ‘‘Modified Procedures for Measuring

Daylight Overdrafts’’ is amended, effective

November 2, 2000, as follows with changes

identified by italics:

* * * * *

Modified Procedures for Measuring Daylight

Overdrafts 3

Opening Balance (Previous Day’s Closing

Balance)

Post at 8:30 a.m. Eastern Time:

+/¥ Government and commercial ACH

credit transactions

+ Treasury Electronic Federal Tax Payment

System (EFTPS) investments from ACH

credit transactions

+ Advance-notice Treasury investments

+ Treasury state and local government

series (SLGs) interest and redemption

payments

+ Treasury checks, postal money orders,

local Federal Reserve Bank checks, and

EZ-Clear savings bond redemptions in

separately sorted deposits

¥ Penalty Assessments for tax payments

from the Treasury Investment Program

(TIP) 4

Post at 8:30 a.m. Eastern Time and Hourly,

on the Half-Hour, Thereafter:

+ Main Account Administrative

Investment from TIP

+ SDI (Special Direct Investment) or

Administrative Investment from TIP

+ 31 CFR part 202 Account Deposits from

TIP

¥ 31 CFR part 202 Deficiency Withdrawals

from TIP

¥ Uninvested PATAX Tax Deposits from

TIP

¥ Main Account Balance Limit

Withdrawals from TIP 

¥ Collateral Deficiency Withdrawals from

TIP

Post at 8:30 a.m., 11:30 a.m., and 6:30 p.m.

Eastern Time:

¥ Main Account Treasury Withdrawals

from TIP 5

Post Throughout Business Day:

+/¥ Fedwire funds transfers

+/¥ Fedwire book-entry securities

transfers

+/¥ Net settlement entries 6

Post by 9:15 a.m. Eastern Time:

+ U.S. Treasury and government agency

book-entry interest and redemption

payments

+ U.S. Treasury and government agency

matured coupons and definitive

securities received before the maturity

date

Post Beginning at 9:15 a.m. Eastern Time:

¥ Original issues of Treasury securities 7

Post at 9:30 a.m. Eastern Time and Hourly,

on the Half-Hour, Thereafter:

+ FR–ETA Value Fedwire Investments

from TIP

Post at 11 a.m. Eastern Time:

+/¥ ACH debit transactions

+ EFTPS investments from ACH debit

transactions

Post at 11:00 a.m. Eastern Time and Hourly

Thereafter:

+/¥ Commercial check transactions,

including return items

+/¥ Check correction amounting to $1

million or more

+ Currency and coin deposits

+ Credit adjustments amounting to $1

million or more

Post at 12:30 p.m. Eastern Time and Hourly,

on the Half-Hour, Thereafter:

+ Dynamic Investment from TIP

Post by 1:00 p.m. Eastern Time:

+ Same-day Treasury investments

Post at 2:00 p.m. Eastern Time:

+ Processed manual letters of credit 8

Post at 5:00 p.m. Eastern Time:

+ Treasury checks, postal money orders,

and EZ-Clear savings bond redemptions

in separately sorted deposits. These

items must be presented by 4:00 p.m.

eastern time.

+ Local Federal Reserve Bank checks.

These items must be presented before

3:00 p.m. eastern time.

+ Processed manual letters of credit

+/¥ Same-day ACH transactions. These

transactions include ACH return items,

check-truncation items, and flexible

settlement items.

Post at 6:30 p.m. Eastern Time: 9

+ Penalty Abatements from TIP

Post After the Close of Fedwire Funds

Transfer System:

+/¥ All other non-Fedwire transactions.

These transactions include the following:

local Federal Reserve Bank checks

presented after 3:00 p.m. eastern time

but before 3:00 p.m. local time; noncash

collection; credits for U.S. Treasury and

government agency definitive security

interest and redemption payments if the

coupons or securities are received on or

after the maturity date; subscriptions for

SLGS; currency and coin shipments;

small-dollar credit adjustments; all debit

adjustments; and small-dollar check

collections. Discount-window loans and

repayments are normally posted after the

close of Fedwire as well; however, in

unusual circumstances a discount

window loan may be posted earlier in

the day with repayment 24 hours later,

or a loan may be repaid before it would

otherwise become due.

Equals:

Closing balance

* * * * *

4. Footnotes 7 through 29 are renumbered

10 through 32.

By order of the Board of Governors of the

Federal Reserve System, May 18, 2000.

Jennifer J. Johnson,

Secretary of the Board.

[FR Doc. 00–13016 Filed 5–23–00; 8:45 am]

BILLING CODE 6210–01–P