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94 Operating Letter 10 FEDERAL RESERVE BANK OPERATING LETTER NO. 10 OF KANSAS CITY April 11, 1994 BOOK-ENTRY SECURITIES ACCOUNT MAINTENANCE AND TRANSFER SERVICES To All Depository Institutions and Others Concerned in the Tenth Federal Reserve District: PURPOSE, SCOPE AND EFFECT OF THIS Securities Accounts and effecting LETTER Transfers. (e) "Free Transfer" means a Transfer 1. This Operating Letter and any appendix or that does not involve any credit or exhibit to it (collectively "Letter") set forth the debit to a Funds Account other than terms and conditions under which the Federal a transaction fee. Reserve Bank of Kansas City maintains Securi- (f) "Funds Account" means a reserve, ties Accounts and effects Transfers of Book- clearing or other funds deposit ac- Entry Securities for Participants. By maintaining count at a Reserve Bank against a Securities Account, a Participant agrees to which debits or credits are posted for accept and be bound by all the provisions of this Transfers Against Payment, Book- Letter, as amended from time to time. Capitalized Entry Securities transaction fees, and terms are defined in Paragraph 3. principal and interest payments. (g) "On-line Access" refers to sending GOVERNING REGULATIONS Transfer Messages electronically through a terminal or computer 2. This Letter incorporates by reference the linked directly to this Bank. "On-tine provisions of the regulations listed in Appendix Participant" refers to a Participant A, as such regulations are amended from time to with On-tine Access. ~ time. (h) "Off-linc Access" refers to other means of sending Transfer Messages DEFINITION OF TERMS to this Bank such as by written, fac- simile, or telephone instruction. 3. For purposes of this Letter, the following "Off-line Participant" refers to a Par- definitions apply. Where the context so requires, ticipant with Off-line Access. the singular includes the plural, and the plural (i) "Participant" refers to any entity that includes the singular. Headings are for conve- maintains a Securities Account with a nience only and do not constitute substantive pro- Reserve Bank in the entity's name. visions. Subject to the Reserve Banks' and the (a) "Bank" means the Federal Reserve Board's risk reduction policies, enti- Bank of Kansas City and any or all ties authorized by law, regulation, of its branches, policy, or agreement to be Partici- Co) "Board" means the Board of Gover- pants include: nors of the Federal Reserve System. (1) depository institutions as de- (c) "Book-Entry Security" means a mar- fined in Section 19CO)(1)(A) of ketable security issued in electronic the Federal Reserve Act, as form by the United States Govern- amended (12 U.S.C. § 461 ment ("Treasury"), auy agency or (b)(1)(A)); instrumentality thereof, certain inter- (2) agencies and branches of for- national organizations, or others, eign banks as defined in Sec- ~'~ that the Reserve Banks have deter- tion l(b) of the International mined is eligible to be held in a Banking Act of 1978, as amend- Securities Account and is eligible for ed (12 U.S.C. §§ 3101(1) and Transfer. (3)); ~_~ (d) "Fedwire" means the electronic (3) member banks of the Federal facility owned and operated by the Reserve System as defined in Reserve Banks for maintaining Regulation H issued by the Board (12 C.F.R. Part 208); SECURITIES ACCOUNT MAINTENANCE (4) the Treasury and any entity specifically authorized by Fed- General eral statute to use the Reserve Banks as fiscal agents or 4. A Participant may have one or more Secu- depositories; rities Accounts at this Bank, subject to the terms (5) entities designated by the Sec- and conditions required by this Bank. Securities retary of Treasury in accor- Accounts may be restricted or unrestricted. In dance with Section 15 of the addition, a Participant may also have certain Federal Reserve Act (12 types of Securities Accounts for special purposes, U.S.C. § 391); subject to terms and conditions agreed upon (6) foreign central banks, foreign between this Bank and the Participant. monetary authorities, foreign governments, and certain inter- Unrestricted Securities Accounts national organizations; (7) entities authorized under Sec- 5. (a) A Participant may hold Book-Entry tion 25, Paragraph 3, and Sec- Securities it owns, as well as Book- tion 25A of the Federal Entry Securities itholds forthe ac- Reserve Act (12 U.S.C. §§ count of its customers, in one or 601 (Third), 611); and more unrestricted Securities (8) any other entity authorized by a Accounts. Regardless of the combi- Reserve Bank to use Fedwire nation or number of unrestricted Book-Entry Securities services. Securities Accounts maintained by a (j) "Securities Account" means an ac- Participant, all Book-Entry Securi- count at a Reserve Bank containing ties held in any unrestricted Securi- Book-Entry Securities held for a ties Account shall be held by this Participant. Bank for, and subject to the sole (k) "Reserve Bank(s)" means any one or order of, the Participant. more of the twelve Federal Reserve (b) A Participant is responsible for Banks and their branches as deter- maintaining accurate and current mined by the context, records, in accordance with applica- (1) "Transfer" means the electronic ble law, with regard to Book-Entry movement over Fedwire of a par Securities it holds for its customers. amount of Book-Entry Securities by This Bank does not reflect in its debit to the designated Securities records any interest of a Partici- Account of the Participant sending pant's customers in Book-Entry the Transfer Message (the "Sender") Securities held by this Bank for such and by credit to the designated Secu- Participant. A Participant shall not rities Account of the Participant represent to its customers that this receiving the Book-Entry Securities Bank's records reflect the interests of (the "Receiver"), or by debit to one Participant's customers. Securities Account of a Participant and credit to another Securities Restricted Securities Accounts Account of that same Participant, in which case that Participant is both a 6. (a) A Participant may hold Book-Entry Sender and a Receiver. A Transfer is Securities pledged as collateral for a either a Free Transfer or a Transfer purpose described in Paragraph 6(b) Against Payment. in one or more restricted Securities (m) "Transfer Message" means an Accounts. Credits of Book-Entry instruction of the Participant to a Securities to, and debits from, Reserve Bank to effect a Transfer. restricted Securities Accounts may (n) "Transfer Against Payment" means require the approval of the pledgee. a Transfer which is effected with a (b) This Bank offers restricted Securi- credit to the Funds Account of the ties Accounts that include, but are Sender and a debit to the Funds not limited to, the following: Account of the Receiver, for the (1) Restricted Securities Accounts amount of the payment, in which this Bank holds Book- 2 Entry Securities in its individ- employees pursuant to ual capacity: 31 C.F.R. Part 202, as (i) as collateral for ad- amended from time to ~_~ vances (including ex- time (Treasury Circular tension of intra-day 176); credit) by the Bank to (iii) as security in lieu of a the Participant; surety on penal bonds, (ii) as collateral pledged by pursuant to 31 C.F.R. ~-~ a Participant in connec- Part 225, as amended tion with its exercise of from time to time trust powers, which (Treasury Circular securities may be re- 154); and leased by an employee (iv) for such other purposes authorized to act on as this Bank may desig- behalf of the Partici- hate with the approval pant's trust department; of the Secretary of the and Treasury, subject to (iii) as collateral for bank- Treasury circulars or ruptcy funds on deposit other relevant instruc- with the Participant tions. pursuant to 11 U.S.C. § (c) Proceeds of Book-Entry Securities, 345 and 31 C.F.R. Part including interest payments on 225, as amended from Book-Entry Securities, held in a time to time (Treasury restricted Securities Account at Circular 154); and maturity or call may be held by this (iv) as collateralto secure Bank in a non-interest-bearing deposits of funds of account until substitute collateral is public entities (includ- posted or the pledge is released. lng a state, municipali- ~- ty, or political subdivi- TERMS AND CONDITIONS OF ACCESS sion) which securities may be withdrawn in General accordance with applic- able state law and other 7. (a) Each Participant is responsible for regulations governing all access to, and all debits and cred- such la'ansactions, its to, its Securities Accounts and its (2) Restricted Securities Accounts Funds Account. A Participant may in which this Bank holds use a third-party service provider, as Book-Entry Securities in its defined in and subject to the provi- capacity as fiscal agent of the sions of the Specific Approval Secu- United States: rities Transfer Agreement or the (i) as collateral to secure Line of Credit Securities Transfer balances held by the Agreement, as the case may be, and Participant in Treasury the Board's payment system risk Tax and Loan accounts reduction policies. under 31 C.F.R. Part (b) A Participant must maintain a Funds 203, as amended from Account to be a Sender or a Receiv- time to time (Treasury er of Transfers Against Payment. Circular 92); This Bank reserves the right: (1) to (ii) as collateral for rev- require a Participant to maintain a ~ enues and funds of the balance in its Funds Account on this United States, and any Bank's books or pledge collateral funds the deposit of sufficient at all times to cover which is subject to the Transfers Against Payment for ~.~ control or regulation of which it is the Receiver, (2) to limit the United States or any a Receiver to Free Transfers, or (3) of its officers, agents, or to limit Transfers Against Payment 3 or to reject Transfer Messages. ating hours. (c) A Participant that does not have or (b) This Bank assigns a time stamp is not permitted to have a Funds identified as Input Message Ac- Account in its own name may only knowledgment Data ("IMAD") to be a Sender or a Receiver of Free each Transfer Message it receives Transfers and must designate a cor- from a Participant. Subject to Para- respondent with a Funds Account graph 7(b), if this Bank does not on a Reserve Bank's books which effect a Transfer Against Payment shall be credited for principal and on the date of receipt of a Transfer interest payments on Book-Entry Message that has passed appropriate Securities, and debited for transac- operational edits, when an IMAD tion fees as described in Paragraphs has been assigned five minutes or 23 and 24. This Bank will reject more before Fedwire closes, the Transfer Messages for Transfers Sender is entitled to an as-of adjust- Against Payment to a Participant ment in accordance with Paragraph that does not have a Funds Account 22, if its Funds Account has not or that is only permitted to be a already been credited. Receiver of Free Transfers. (d) The Sender and the Receiver of a Terms and Conditions of Off-line Access Transfer have irrevocably autho- rized and instructed the Reserve 9. (a) Transfer Messages and matching Bank(s) involved in such Transfer instructions must be given in writ- to debit the Sender' s designated lng, by facsimile transmission or by Securities Account and credit the telephone by an individual on file Receiver's designated Securities with this Bank. This Bank shall call Account for the par amount of the the Participant's place of business Book-Entry Securities and credit to verify a Transfer Message or the Sender's Funds Account and other instruction, may record any debit the Receiver's Funds Account telephone call relating to Transfers, for the payment in the case of a and may require verification of all Transfer Against Payment. Transfer Messages or other instruc- (e) If this Bank returns a Transfer in the tions through codeword in its dis- circumstances described in Para- cretion. This Bank is entitled to graph 9(b), the Sender and the rely on any Transfer Messages or Receiver of such Transfer irrevoea- instructions (whether or not autho- bly authorize and instruct the rized) that it reasonably believes to Reserve Bank(s) involved in the be genuine. Transfer to post debits and credits (b) If a Receiver has not given match- to the Sender's and the Receiver's ing instructions, this Bank will Securities Accounts and their corre- return the Transfer as promptly as sponding Funds Accounts offsetting possible by having debits and cred- those previously made inconnec- its posted to the Securities tion with such Transfer. Accounts and the Funds Accounts (f) This Bank provides Participants offsetting those debits and credits with On-line Access or Off-line previously made in connection with Access to Fedwire, described fur- such Transfer. ther below, but reserves the right to terminate a Participant's access Security without prior notice. 10. A Participant is responsible for prevent- Terms and Conditions of On-line Access lng disclosure of any codes or other security procedures relating to either On-line Access or 8. (a) An On-line Participant must manage Off-line Access, except to those with a need to its access in order to receive timely know. The Participant must notify this Bank acknowledgement of credits and deb- immediately if it finds or suspects that the codes its to its Securities Accounts and its or security procedures are compromised, and act Funds Accotmt during Fedwire oper- to prevent further disclosure. 4 SETTLEMENT OF BOOK-ENTRY SECU- securities to book-entry form RITIES TRANSACTIONS or from one book-entry form to another book-entry form. Finality (b) Book-Entry Securities are debited to a Participant's Securities 11. (a) SubjecttothisBank'srightofrejec- Account whenever: tion in Section 7(b), all debits and (1) this Bank effects a Transfer credits in connection with a Transfer for a Participant that is a become final at the earlier of: (1) the Sender, or a Participant time such debits and credits are post- requests that Book-Entry ed to both the Sender's and the Securities be moved into the Receiver's Securities Accounts and TREASURY DIRECT Sys- their corresponding Funds Accounts tern; in the case of a Transfer Against Pay- (2) Book-Entry Securities held in ment, or (2) at the time nolice of the a Securities Account mature Transfer is made available to the or are called for redemption; Sender and the Receiver. Transfers or may be reversed only by a separate (3) a Participant converts eligible Transfer effected by a Transfer Mes- Book-Entry Securities to sage using the reversal code, or bearer or registered definitive Transfers may be returned by this securities or from one book- Bank in accordance with Paragraph entry form to another book- 9(b). entry form in the same (b) Subject to Paragraph 6(c), this Bank amount, series, and maturity credits payments of principal and date as the Book-Entry Secu- interest on Book-Entry Securities to rities. the Participant's (or, subject to prior (c) Book-Entry Securities can be cred- written agreement, its correspon- ited to a Securities Account upon dent's) Funds Account on the due original issue or converted to or date (or the next business day, if the from definitive form (bearer or reg- payment date falls on a weekend or istered) according to relevant regu- holiday) from available funds of the lations and policies of the issuers of issuer, unless otherwise instructed the Book-Entry Securities and of by the issuer, the Reserve Banks. Book-Entry (c) Credits of principal and interest pay- Securities are redeemed at maturity ments on Book-Entry Securities to a or called in accordance with the Funds Account are final, subject to issuer's instructions. this Bank's right to debit or credit (d) Book-Entry Securities can be debit- such Funds Account (without fur- ed or credited to a Securities ther authorization or instruction) to Account in accordance with Para- correct any payment errors, graph 9(b). (e) If a Transfer Message does not des- Credits and Debits of Book-Entry Securities ignate the Securities Account of the Receiver to be credited, Book- 12. (a) Book-Entry Securities are credited Entry Securities will be credited to to a Participant's Securities the Securities Account designated Account whenever a Participant: as a default. (1) is a Receiver, from another Participant or from the TRANSFER OF BOOK-ENTRY SECURI- TREASURY DIRECT Sys- TIES tem (described at 31 C.F.R. Part 357.20 et seq.) to its Restrictions on Transfers Securities Account at this Bank; 13. (a) Transfers are not authorized on or (2) purchases Book-Entry Securi- after the date of maturity of a par- ties on original issue; or ticular issue, or on or after the (3) converts eligible definitive redemption date of a bond or note 5 that has been called for redemp- Appendix B. However, the Reserve Banks may tion. Certain issues may contain decide in their sole discretion to open or close restrictions which do not allow Fedwire at an earlier time, or extend Fedwire, to Transfers for a specified time facilitate specialmarket needs. period prior to maturity. 16. (a) A Participant requiring an exten- (b) This Bank will not accept instmc- sion of Fedwire operating hours tions from a Sender (or a Receiv- should contact this Bank as soon as er) to credit (or debit) a correspon- possible. A request made later than dent's Funds Account for a five minutes prior to the scheduled payment in connection with a Fedwire close shall not be granted. Transfer Against Payment. Extensions may be granted for rea- sons including, but not limited to, Amount Limitations on Transfers the following: (1) Heavy volume in the Book- 14. (a) There is a par amount maximum Entry Securities market; for Transfers statedin Appendix B (2) Failure of Reserve Bank (the "Limit"). The Limit applies to and/or Fedwire network all Transfers, as well as to transac- equipment; or tions with the Federal Reserve's (3) Failure of any Participant's Open Market Desk, except as pro- (or its customer's) equipment vided in Paragraph 14(b). This when such failure is deemed Bank shall reject a Transfer Mes- disruptive to the securities sage with a par amount greater market as a whole. than the Limit. (b) When requesting an extension, the (b) The Limit on Transfers does not requesting Participant will be apply to: required to state the dollar amount (1) Transactions, including the and volume of unprocessed Trans- original issuance of Book- fer Messages and to assess the Entry Securities and requests severity of any technical difficul- to strip and reconstitute ties. Book-Entry Securities, with (c) Every extension of Fedwire is this Bank in its capacity as broadcast electronically to all fiscal agent of the United Reserve Banks and all On-line Par- States, Federal and Federal- ticipants. ly-sponsored agencies, or international organizations; Notices and (2) Debits or credits to restricted 17. This Bank sends each Participant a notice Securities Accounts on this following each credit or debit to its Securities Bank's books. Accounts on this Bank's books. The notice is not (c) Participants should establish pro- a negotiable or a txansferable receipt but is mere- cedures to ensure that large Trans- ly confirmation of a completed Transfer. fers are not delayed until late in (a) This Bank sends an On-line Partici- the day. Specifically, each Partici- pant an electronic notice of each such pant should encourage its cus- debit or credit to its Securities tomers to provide delivery instruc- Accounts. tions to it as soon as practical after (b) This Bank sends an Off-line Partici- a trade is executed and to deliver pant a printed notice of each debit Book-Entry Securities as soon as or credit to its Securities Accounts. lots, based on par amount, of This Bank will also attempt to noti- Book-Entry Securities at the Limit fy such Participant by telephone of ~" are in position, each such debit or credit, for which instructions and verification were Transfer Hours and Extensions completed on a prior day. 18. After the close of business, this Bank pro- 15. This Bank will effect Transfers in accor- vides each On-line Participant with: dance with the schedule of operating hours in (a) a summary of funds debited or 6 credited to the Participant's Funds ticipant that is a Sender, and an Off- Account on this Bank's books as a line Participant that is a Sender or a result of Transfers Against Pay- Receiver, a fee for each Transfer, merit; and except for Transfers affecting the (b) a summary of net balances for each following Restricted Securities Book-Entity Security issue for which counts: Treasury Tax and Loan there was activity. ("TT&L"), Loans and Discounts, 19. Each Participant also receives information and Circular 176. All Receivers are detailing principal and/or interest payments cred- charged a fee for each reversal. ited to its (or its correspondent's) Funds Account. 20. A Participant must notify this Bank in Issue and Securities Account Maintenance writing of an exception to any notice, summary, Fees or statement as soon as possible, but in any event, no later than 10 calendar days from the (b) For non-Treasury Book-Entry Secu- date of the notice, summary, or statement, rities only, fees are assessed for per- issue balances maintained in each Improper Use of the Reversal Code Securities Account and for each Securities Account maintained on 21. (a) A Participant should not send a this Bank's books. A separate per Transfer Message for the first time issue fee is assessed for each third- during the reversal period by using party pledge held in the same Secu- the reversal code. A Receiver unable riries Account. Per-issue and Securi- to reverse a Transfer effected by ties Account fees are not assessed such Transfer Message to the for the following Restricted Securi- Sender may request an as-of adjust- ties Accounts: Treasury Tax and merit as discussed in Paragraph 22. Loan ("TT&L"), Loans and Dis- (b) No misuse of the reversal code has counts, and Circular 176. occurred if a Transfer effected by a Transfer Message sent initially and Billing of Fees properly during the origination peri- od using the origination code is 24. (a) The Participant's (or, subject to pri- reversed one or more times by a or written agreement, its correspon- Transfer Message using the reversal dent's) Funds Account is debited for code. However, any request for fees for Treasury Book-Entry Secu- compensation arising therefrom is rities daily. These fees may not be not handled by this Bank and must offset against earnings credits. be handled directly by the Sender (b) Fees for Book-Entry Securities oth- and the Receiver. er than Treasury Book-Entry Securi- ties are billed monthly and debited REQUESTING AS-OF ADJUSTMENTS to the Participant's (or, subject to prior written agreement, its corre- 22. Participants may request an as-of adjust- spondent's) Funds Account. These ment for improper use of the revemal code, and for fees can be offset against earnings delays and operational errors caused by this Bank. credits. Participants must submit written documentation 25. A Participant that does not have a Funds supporting the request within two business days of Account is not relieved of its liability fur any fees the transaction giving rise to the request, it incurs by using Fedwire, TRANSFER AND SECURITIES ACCOUNT EMERGENCY CONDITIONS MAINTENANCE FEES Failure of a Participant's Equipment Assessment of Fees (in accordance with Appendix C) 26. On-line Participants are responsible for developing their own contingency and recovery Transfer Fees plans, such as back-up computer and operations facilities, to ensure their ability to continue Fed- 23. (a) This Bank charges an On-linc Par- wire operations in the event of equipment fail- 7 ure or other operational interruption. This Bank as otherwise provided herein, this Bank is liable assumes no responsibility for providing any only for the actual direct loss sustained by the back-up access facilities for Participants. immediate Participants to a transaction proxi- mately caused by this Bank's failure to exercise Failure of Reserve Bank Equipment ordinary care or act in good faith. Specifically, the amount of this Bank's liability to a Partici- 27. (a) In the event of an emergency or fail- pant is limited to no more than the dollar amount ute of this Bank's computer or oper- of the transaction plus reasonable interest and ations facilities, Transfers may be incidental expenses, unless the Participant's delayed until the emergency or fail- claim is based on delay of a transaction in which ure is resolved. During extended case this Bank's liability is limited to reasonable disruptions, this Bank's Fedwire interest and incidental expenses. This Bank may, operations may be relocated to a in its discretion, satisfy its obligation to pay back-up site. Participants should interest hereunder by providing an as-of adjust- refer to this Bank's contingency ment or by paying compensation. In no event guidelines regarding Participant shall this Bank be liable for consequential, indi- requirements and responsibilities rect, incidental or special damages (including during contingency operations, lost profits), however derived and regardless of (b) On-line Participants should be pre- whether this Bank has been informed of the pos- pared to reconcile their positions up sibility thereof. to the point of the failure under this Bank's instructions. REVISION OF LETTER (c) This Bank will notify On~line Par- ticipants of an operating problem at 29. This Bank reserves the right to amend this another Reserve Bank and should Letter at any time without prior notice but will the problem be deemed critical, give endeavor to give 30 days notice. instructions to On-line Participants. LIMITATIONS ON LIABILITY 28. This Bank is not liable for the insolvency, neglect, misconduct, mistake, or default of any THOMAS M. HOENIG entity or person, including a Participant. Except President FEDERAL RESERVE BANK APPENDIX A OF KANSAS CITY TO OPERATING LETTER NO. 10 ~.~ April 11, 1994 APPLICABLE REGULATORY CITATIONS GOVERNING BOOK-ENTRY SECURITIES OF AGENCIES. INSTRUMENTALITIES. AND ESTABLISHMENTS OF THE UNITED STATES 12 C.F.R. Part 615 Subpart O (Farm Credit System). 12 C.F.R. Part 615 Subpart R (Farm Credit System Financial Assistance Corporation). 12 C.F.R. Part 912 (Federal Home Loan Banks). 1 C.F.R. Part 462 (Federal Home Loan Mortgage Corporation). 24 C.F.R. Part 81 Subpart E (Federal National Mortgage Association). · 12 C.F.R. Parts 912 950.5 (Financing Corporation). 12 C.F.R. Part 1511 (Resolution Funding Corporation). 31 C.F.R. Part 354 (Studem Loan Marketing Association). 18 C.F.R. Part 1314 (Tennessee Valley Authority). 31 C.F.R. Part 306 Subpart O (United States Department of the Treasury). 31 C.F.R. Part 350 Subpart B (United States Department of the Treasury). FEDERAL RESERVE BANK APPENDIX B OF KANSAS CITY TO OPERATING LETTER NO. 10 April 11, 1994 FEDWIRE OPERATING HOURS FOR BOOK-ENTRY SECURITIF~ TRANSFERSl (Eastern Time) Par Amount Maxhnum Thc par amount maximum for Transfers is $50 million. On-line Transfers Opening of Fedwire2 8:30 a.m. (Eastern Time ("E.T.")) Close of the origination period for Transfers 2:30 p.m.E.T. Close of the period for turnaround Transfers from a dealer to an tfitimate customer 2:45 p.m.E.T. Close of the reversal period for Transfers 3:00 p.m.E.T. Off-line Instructions Begin accepting instructions 7:00 a.m.E.T. Cut-off for accepting instructions for current day processing3 1:30 p.ln. E.T. Cut-off for accepting ins~uctions for future days processing 4:00 p.m.E.T. I This Bank observes standard legal holidays which include: All Saturdays, All Sundays, New Year's Day (January 1), Martin Luther King's Bi~hday (third Monday in January), Washington's Birthday (third Monday in Februa~), Memorial Day (last Monday in May), Independence Day (July 4), Labor Day (first Monday in September), Columbus Day (second Monday ~n October), Veteran's Day (November 11 ), Thanksgiving Day (fourth Thursday in November), and Christmas Day (December 25). If January 1, July 4, November 11, or December 25 fall on a Sunday, the next following Monday is a standard Reserve Bank holiday. The New Orleans Bratwh of the Federal Reserve Baak of Atlanta closes on Mardi Cwas. 2 Reserve Banks may decide, in their sole discretion, to open or close Fedwire at an earlier time, or extend Fedwire, to facilitate special market needs. 3 An attempt will be made to process off-line instructions received after the cut-off time, but cannot be guaranteed. ~ requesting Participant will be notified if the Transfer is not effected. FEDERAL RESERVE BANK APPENDIX C OF KANSAS CITY TO OPERATING LETTER NO. 10 April 11, 1994 1994 FEE SCHEDULE FOR SECURITIES ACCOUNTS AND TRANSFERSl TRANSFERS (PER TRANSFER. INCLUDING SECURITIES ACCOUNT SWITCH/2 Sender On-line Transfers $ 2.25 Off-lineTransfers 10.00 Receiver On-line reversals $ 2,25 Off-line Transfers 10,00 Off-line reversals 10.00 MAINTENANCE Monthly account main~nance3: Per Securities Account $15.00 Per issue (within Securities Account) .45 I Neittmr Transfer fees nor monthly account maintenance fees are assessed for activity affec6ng the following Restricted Securities Accounts: Treasury Tax and Loan CUr&L) (Treasury Circular 92), Loans and Discounts, and Treasury Circular 176. 2 Treasury is responsible for establishing Transfer fees for Treasury Book-Ent~ Securities. At present, the Treasury Onqine fee is $1.65 and the Off-line fee is $9.40. To these fees a $.60 funds settlement fee assessed by the Federa/Reserve Ba~ks is added. 3 These fees apply to non-Treasury Book-Entry Securities only. Securities Accounts which contain only Treasury Book-Entry FEDERAL RESERVE BANK EXHIBIT 1 OF KANSAS CITY TO OPERATING LETTER NO. 10 April 11, 1994 (Letterhead of Public Entity) (Date) REQUEST TO RELEASE PLEDGED SECURITIES Federal Reserve Bank of Kansas City Attention: Securities Services P. O. Box 419033 Kansas City, Missouri 64141-6033 Please release from joint custody the securities described below.* Pledgor's Name: (Depositor or Financial Institution) Pledgor CBI: __ (9 digit number) Security Identification: CUSIP: Maturity Date: Par Amount: Pledgee CBI: 49 digit number) _ c/g. / _ Oc~ c~ _ / ? / I understand that the securities listed above will be released to the pledgor upon receipt of this release and receipt of transfer instructions from the pledgor. Name of Public Entity By: Signature** Authorized Individual's Name * The specific information needed can be found on the "Acknowledgment of Book-Entry Deposit" which was mailed to you at the time of deposit. ** The individual signing the release must be on the current "Pledgee Authorization Form" on file with this Reserve Bank.