Circular
Pledging of Definitive Collateral
May 21, 1997
Circular No. 10953

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

Effective June 2, 1997, definitive collateral pledged for Discount and Treasury Tax and Loan should be presented at the 1st floor of the FRBNY at 33 Liberty Street, instead of the 13th floor. This change results from the reorganization described in Circular No. 10947, dated April 20, 1997. In conjunction with this relocation, the hours for delivery and pickup of definitive collateral have been changed. Beginning June 2, all deliveries should be made between 9:00 a.m. and 11:00 a.m. and all pickups should be made between 1:00 p.m. and 3:00 p.m. daily. Procedures for depositing and withdrawing collateral remain the same. Questions regarding the procedures can be directed to the Fiscal Services Function at (212) 720-8183.

Also effective June 2, immediate collateral value will no longer be granted for Discount and Treasury Tax and Loan definitive collateral until a credit assessment is rendered. However, for depository institutions that wish to continue to receive immediate collateral value for customer notes, financial statements are required at least five business days prior to deposit. If financial statements are received as required, and the collateral is found acceptable, collateral value can be expected on the deposit day. Financial statements should be sent to the Discount and Reserves Staff of the Markets Group located on the 9th floor at 33 Liberty Street.

In addition, all depository institutions pledging definitive securities (i.e., corporates, municipals, CMOs, etc.) are required to call one day in advance of deposit with cusips in order to obtain prior credit approval. If prior credit approval is obtained for these types of deposits, collateral value can be expected on the deposit day. This policy is consistent with collateral valuation practices and policies at other Reserve Banks. Questions regarding acceptability of specific securities may be directed to the Discount and Reserves Staff at (212) 720-6424 or (212) 720-6439.