To: All Member Banks and Others Concerned in the Third Federal Reserve District

Attention: Chief Executive Officer and Chief Compliance Officer

Subject: Amendments to Operating Circular no. 9: changes to the TT&L program to implement term investments


The Federal Reserve Bank of St. Louis has amended Operating Circular No. 9 (Federal Tax Payments and Treasury Tax and Loan Depositaries) effective February 5, 2005. These amendments are primarily being made to incorporate provisions regarding Term Investments. Term Investments are investments of excess Treasury funds that are placed for a specified period of time, up to 90 days. The rate of interest a depositary pays for Term Investments is normally determined by an auction. These provisions are substantially the same as those that were previously contained in separate agreements with Term Investment Participants. Those separate agreements are superseded by the revised Operating Circular. A new section 6.4 and new Appendices H and I have been added. Definitions related to Term Investments have also been added and appropriate references in other sections have been made to Term Investments. In addition, several clarifying and editorial changes have been made throughout the circular.

The current Operating Circular No. 9 has been posted on the Financial Services Web site, , and reflects these amendments.

Date: The amendment became effective February 5, 2005.

For Further Information: Questions regarding revised Operating Circular No. 9 or Term Investments may be directed to the National Customer Service Area (NCSA) at (888) 568-7343.