Final Rule Analysis: Withdrawal from Noncash Collection Service

CUNA
March 18, 2005

The Federal Reserve Board (Board) issued a final rule to withdraw from the collection and processing of definitive municipal bonds and coupons issued by state and local governments by the end of 2005. Declining demand and availability of alternate service providers has prompted the Board’s decision to withdraw from this service. The Fed will provide transition information through its website at http://www.frbservices.org. This will not include or impact the redemption of Treasury coupons currently handled by the Reserve Banks. The final date for accepting deposits is September 30, 2005, and the final date of the service is December 30, 2005. Attached is CUNA's Final Rule Analysis with additional information.