NCUA Notifies CUs on Contaminated Money Policy
ALEXANDRIA, Va.-In order to stem the spread of contaminates left behind on money from Hurricanes Katrina and Rita, the Federal Reserve has instituted a replacement policy. NCUA issued Letter to Credit Unions 05-CU-14 alerting credit unions in the impacted areas to deposit their contaminated currency with the Fed to avoid potential health issues associated with handling the contaminated funds. Financial institutions should contact their servicing Fed office for delivery of special shipping bags, free of charge, and obtain additional deposit instructions. The Fed is defining contaminated money as "a note damaged by or exposed to a contaminant to the extent that it cannot be processed under normal operating procedures or may pose a health or safety risk." Questions should be directed to the appropriate NCUA regional office or state regulator.