[Federal Register Volume 65, Number 134 (Wednesday, July 12, 2000)]
[Notices]
[Page 43012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17552]


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FEDERAL RESERVE SYSTEM

[Docket No. R-1068]


Policy Statement on Payments System Risk Modifications to 
Daylight Overdraft Posting Rules; Delay of Effective Date; Correction

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Policy statement: Delay of effective date; Correction.

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SUMMARY: The Board is announcing the delay of the implementation of 
changes to the procedures for measuring daylight overdrafts for 
Treasury Investment Program transactions as a result of the Treasury 
Investment Program's implementation delay. The Board is also announcing 
posting-time corrections for three transactions.

EFFECTIVE DATE: The effective date of amendments published at 65 FR 
33734 and 33735 are delayed indefinitely.

FOR FURTHER INFORMATION CONTACT: Myriam Payne, Manager (202/452-3219), 
Stacy Coleman, Senior 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

    On May 24, 2000, the Board published modifications to the 
procedures for measuring daylight overdrafts for Treasury Investment 
Program (TIP) and Paper Tax System (PATAX) transactions (65 FR 33734). 
The TIP and PATAX applications were scheduled to replace the Treasury 
Tax and Loan (TT&L) system on July 10, 2000. On July 5, 2000, the 
Department of the Treasury announced the implementation delay of the 
TIP and PATAX applications (65 FR 41522). The Board will announce the 
revised effective dates of the modifications to the procedures for 
measuring daylight overdrafts once a new implementation date is 
established.\1\
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    \1\ To allow sufficient time for depository institutions to 
adjust to the various operational changes associated with TIP, the 
Board approved a transition period in which most TIP transactions 
resulting in debits to depository institutions' accounts would post 
after the close of Fedwire. After this transition period, the 
Federal Reserve will post all TIP transactions resulting in debits 
to depository institutions' accounts on a flow basis as TIP 
processes them.
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Need for Correction

    As published, the posting time for same-day Treasury withdrawals 
announced by 11:30 a.m. ET is incorrect and the posting times for Main 
Account Administrative Withdrawals and SDI (Special Direct Investment) 
Withdrawals were omitted.

Correction of Publication

    Accordingly, the amendments published on May 24, 2000, at 65 FR 
33735, which was subject of FR Doc. 00-13016, are corrected as follows:

Policy Statement on Payments System Risk [Corrected]

    1. On page 33735, column 2, line 10 from the top of the column, the 
language ``+ Main Account Administrative Investment from TIP'' is 
corrected to read ``+/- Main Account Administrative Investment or 
Withdrawal from TIP.''
    2. On page 33735, column 2, line 12 from the top of the column, the 
language ``+ SDI (Special Direct Investment) or Administrative 
Investment from TIP;'' is corrected to read ``+/- SDI (Special Direct 
Investment) or Administrative Investment or Withdrawal from TIP.''
    3. On page 33735, column 2, line 24 from the top of the column, the 
language ``Post at 8:30 a.m., 11:30 a.m., and 6:30 p.m. Eastern Time:--
Main Account Treasury Withdrawals from TIP'' is corrected to read 
``Post at 8:30 a.m., 1:00 p.m., and 6:30 p.m. Eastern Time:--Main 
Account Treasury Withdrawals from TIP.''

    By order of the Board of Governors of the Federal Reserve 
System, July 6, 2000.
Robert deV. Frierson,
Associate Secretary of the Board.
[FR Doc. 00-17552 Filed 7-10-00; 8:45 am]
BILLING CODE 6210-01-M