Circular No. 11363
July 10, 2001

REVISIONS TO OPERATING CIRCULAR NO. 1

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

The Federal Reserve Banks are amending their Operating Circular 1, "Account Relationships", effective July 1, 2001, to include a provision (6.3) governing protection by Reserve Banks of nonpublic personal information obtained by them. This provision is intended to satisfy the desire of our customers for assurance that their own customers’ privacy is being protected, as required by law. The amendments also include updates to other legal provisions, such as the provision governing security interests in assets to cover overdrafts (5.3) and the provision requiring that the account agreement be maintained as an official record of the bank (2.9).

The amendments do not include any changes to account procedures or to the forms appended to the circular, and should not require any changes in operations by account holders.

As previously indicated, the official version of this and other circulars can be found on the web at www.frbservices.org. From the home page, click on "Industry Topics" and then on "Operating Circulars."

Robert Pofsky
Assistant Vice President