by postmasters for credit to their official checking accounts are required to report daily to the Treasurer of the United States on line 12 of Form 17 the aggregate of the balances in such accounts and to report on Form 7 at the end of each week to the Secretary of the Treasury, Division of Deposits, showing such balances in detail. Depositaries are required to include in these reports all funds carried on their books to the official credit of postmasters, including trust funds, and all funds to the official credit of the United States courts and their officers, including United States marshals. Funds of bankrupt estates deposited by referees or trustees in bankruptcy and postal savings deposits should not be included in these reports.*† 202.30 Member bank depositaries; interest on deposits. In view of the provisions of section 11 (b) of the Banking Act of 1933 (48 Stat. 181; 12 U.S.C. 371 (a)) general and limited member bank depositaries designated under the terms of this part will not be required to pay interest on daily balances carried thereunder.** [As amended by 4th Supp., June 26, 1933] ances. 202.31 Member bank depositaries; restoration of depleted balWhenever the balance to the credit of the Treasurer of the United States in any general depositary is reduced by the cashing of Government checks and warrants below the amount fixed by the Secretary of the Treasury, the balance will be immediately restored upon the receipt by the Treasurer of the United States of a request from the depositary bank, either by wire prepaid or by letter. Such requests must be in the form and in accordance with instructions prescribed by the Treasurer of the United States. (See Treasurer's circular letter G.A. 55, dated January 2, 1935, copies of which will be furnished on request.) The Treasurer of the United States will restore balances in either of the following methods, as may be desired by the bank: (a) By directing the appropriate Federal Reserve bank by wire to credit the bank's reserve account, or (b) by placing funds to the bank's credit by wire with its correspondent in any city where a Federal Reserve bank or branch is located. Immediately upon making such transfer the Treasurer will advise the bank, by wire prepaid, and credit therefor must be given on the same date in the Treasurer's account with the depositary bank and reported on Form 17 for the same day. No funds will be transferred, however, to a depositary bank in advance of the actual reduction of the Treasurer's balance or in anticipation of the future cashing of Government obligations.*+ 202.32 Government checks and warrants; payment by Federal Reserve banks and branches. Federal Reserve banks and branches will make arrangements to cash Government checks and warrants drawn on the Treasurer of the United States for disbursing officers of the War Department and Navy Department, and other Government officers, provided that satisfactory identification of the officers shall be furnished. The Treasurer will upon special request advise Federal Reserve banks and branches as to whether the balances to the credit of disbursing officers are sufficient for payment of the checks presented. Each Federal Reserve bank and branch will cash Government checks and warrants drawn on the Treasurer of the *For statutory citation, see note to § 202.0. Page 21 United States when they are presented and properly indorsed by responsible incorporated banks and trust companies who guarantee all prior indorsements thereon, including the indorsement of the drawer when the check is drawn in his favor. Checks and warrants cashed by Federal Reserve banks and branches shall be charged to the account of the Treasurer of the United States, subject to examination and payment by the Treasurer. Federal Reserve banks and branches will not be expected to cash Government checks and warrants presented direct to the bank by the general public.*+ 202.33 Government checks and warrants; payment by member bank depositaries. Each member bank depositary with a fixed balance to the credit of the Treasurer of the United States will cash Government checks and warrants drawn on the Treasurer of the United States when they are presented and properly indorsed by responsible holders who guarantee all prior indorsements thereon, including the indorsement of the drawer when the check is drawn in his favor. Checks and warrants so cashed may be charged to the account of the Treasurer of the United States, subject to examination and payment by the Treasurer. Member bank depositaries are not required, however, to charge Government checks and warrants cashed by them in the account of the Treasurer of the United States, except in special cases where checks drawn on the Treasurer of the United States are deposited for the official credit of the drawer or the credit of other Government officers in the account of the Treasurer of the United States. When Government disbursing officers present official checks to member bank depositaries to be cashed, the Treasurer of the United States upon special request will advise such depositaries as to whether the balances to the credit of the disbursing officers are sufficient for the payment of the checks presented.*+ 202.34 Government checks and warrants; payment by Treasurer. The Treasurer of the United States reserves the usual right of the drawee to examine, when received, all Government checks and warrants cashed by Federal Reserve banks and branches and member bank depositaries, and to refuse payment thereon. The Treasurer will handle all such items received by him on the following basis: (a) Immediate return will be made of any check or warrant, payment of which is refused on account of forged signature of drawer, insufficient funds, stoppage of payment, or any material defect discovered upon first examination, in all of which cases the transit account of the remitting bank will be charged with the amount of the returned check or warrant and the remitting bank will be expected to give immediate credit therefor in the Treasurer's account; but if the original check or warrant is required for use in connection with a criminal investigation or legal proceeding, the original will be retained for that purpose and a photographic copy of the face and back will be forwarded to the remitting bank in lieu of the original. (b) In the event that any check or warrant which has been paid by the Treasurer is subsequently found to bear a forged indorsement, cr to bear any other material alteration or defect which was not discovered upon first examination, a photographic copy of the check or warrant will be forwarded to the remitting bank and its transit ac Page 22 *For statutory citation, see note to § 202.0. count will be charged with the amount by the Treasurer. The remitting bank, if a member bank depositary, will be expected to give immediate credit therefor in the Treasurer's account; if a Federal Reserve bank or branch, it will be expected to demand restitution at once from its prior indorser or indorsers, to maintain a close followup on its demand, and to give credit in the Treasurer's account when reimbursement has been made. In the case of checks paid more than a year before reclamation is requested of the presenting bank, the Treasurer may, in his discretion, treat the item as a collection instead of charging the presenting bank's account, with the understanding that no rights of the Government as to ultimate recovery are waived thereby. (c) In cases of checks or warrants raised or bearing a forged signature of the drawer, not discovered upon first examination by the Treasurer, and in other cases where the Treasurer's right to reclaim is in question, the checks or warrants will be forwarded to the remitting bank as collection items and taken up by the Treasurer when credited, with no intermediate charge in the account of the remitting bank. A photographic copy may be returned in lieu of the original if the latter is required for use in connection with a criminal investigation or legal proceeding. In any case arising under this section in which a Federal Reserve bank or branch is unable to secure restitution within a reasonable length of time, the facts should be reported to the Treasurer of the United States in order that appropriate action may be taken by him. After the expiration of 1 year following the close of the fiscal year (ending June 30) in which they are drawn, checks drawn on the Treasurer of the United States are not payable by him but should be transmitted to the Secretary of the Treasury, Division of Bookkeeping and Warrants, for payment from the "Outstanding Liabilities" appropriation, accompanied by an application for payment over the signature and address of the owner of such checks: Provided, however, That the 1-year restriction does not apply to checks issued on account of public debt obligations and checks issued on account of transactions regarding the administration of banking and currency laws. [As amended Apr. 23, 1935] 202.35 Previous inconsistent regulations and instructions superseded. All previous regulations and instructions inconsistent with this part are hereby superseded, including, so far as inconsistent herewith, the provisions of Treasury Department Circulars No. 5, dated April 6, 1916, No. 105, dated December 27, 1917, and No. 144, dated May 20, 1919, and the provisions of the editions of Circular 176 issued under dates of December 31, 1919, and May 15, 1922.*† 202.36 Certain deposits not affected by this part. Except as herein otherwise provided, nothing contained in this part shall be deemed to affect deposits by postmasters to the credit of their official checking accounts, the deposit of court funds by United States courts and their officers, or the deposit of postal savings funds, in cases where such deposits are not for credit by the depositary in the account of the Treasurer of the United States. Unless specifically extended thereto by the Secretary of the Treasury, nothing contained *For statutory citation, see note to § 202.0. Page 23 in this part shall be deemed to apply to or govern the deposit of public moneys in Federal land banks or joint stock land banks under the Act approved July 17, 1916 (39 Stat. 360; 12 U.S.C. 641 et seq.), as amended.** 202.37 This part not applicable to deposit of public moneys outside of the continental United States. The provisions of this part do not apply to or govern the deposit of public moneys outside of the continental United States, except to the extent specifically extended by the Secretary of the Treasury from time to time. Reference is made to the provisions of Treasury Department Circular No. 194, as amended and supplemented May 4, 1922 (Part 206 of this title), for special regulations applicable to the Philippine Islands.** 202.38 Right to amend. The Secretary of the Treasury may withdraw or amend at any time or from time to time any or all of the provisions of this part.** PART 203-SPECIAL DEPOSITS OF PUBLIC MONEYS UNDER THE ACT OF CONGRESS APPROVED SEPTEMBER 24, 1917, AS AMENDED 4 Section 203.1 Banks and trust companies desiring to act as depositaries of public moneys. Any incorporated bank or trust company in the United States desiring to participate in deposits of public moneys, as authorized by the Act approved September 24, 1917, as amended, should make application to the Federal Reserve bank of its district.***† **§§ 203.1 to 203.19, inclusive, issued under the authority contained in sec. 8, 40 Stat. 291, sec. 5, 40 Stat. 504, sec. 14 (a) (2), 48 Stat. 343; 31 U.S.C. 771. The source of §§ 203.1 to 203.19, inclusive, is Department Circular 92, Revised, Secretary of the Treasury, Feb. 23, 1932. Amendments are noted in brackets following sections affected. The forms mentioned in this part may be obtained from the Office of the Commissioner of Accounts and Deposits, U. S. Treasury Department, Washington, D. C. Page 24 *For statutory citation, see note to § 202.0. 203.2 Application; resolution; forms. Application for deposit of public moneys under said Act must be in Form H-5, and must be accompanied by a certified copy of a resolution, duly adopted by the board of directors of the applicant, in Form J−5.*† 203.3 Depositaries already qualified. Depositaries already qualified to a sufficient amount pursuant to this part will not be required to file new formal applications or resolutions, but if they desire to receive or retain deposits after March 7, 1932, must so notify the Federal Reserve bank of the district in which they are located; and they will, by the acceptance or retention of deposits after March 7, 1932, be conclusively presumed to have assented to all the terms and provisions of this part, and to the retention of collateral security theretofore pledged as collateral security under this part.** 203.4 Designated depositaries which have become inactive; discontinuance. Depositaries heretofore designated, which have been wholly inactive for a period of 2 years preceding the date of the regulations in this part, will be discontinued, and, in the future, the designations of all such depositaries which have not applied for deposits for a period of 2 years will be automatically canceled. Depositaries so discontinued may be redesignated at any time, upon full compliance with the terms of the regulations in this part and upon recommendation of the Federal Reserve banks. Depositaries, heretofore or hereafter designated, which, having subscribed to an offering of United States bonds, notes, or certificates of indebtedness, and having in due course received an allotment on their subscription, refuse to receive the said allotment and make payment therefor, may be discontinued. Depositaries so discontinued may be redesignated upon full compliance with the terms of the regulations in this part, upon recommendation of the Federal Reserve bank of their district, and upon the approval of the Secretary of the Treasury.*+ 203.5 Determination of maximum amount of deposits for which application will be made. In fixing the maximum amount of deposits for which it will apply, the applicant bank or trust company should be guided by the amount of the payments which it expects to make, for itself and others, on account of bonds, notes, and certificates of indebtedness of the United States issued under authority of said Act, and income taxes, as the case may be, and, as well, by any statutory limitations upon the amount of deposits which the applicant bank or trust company may receive from any one depositor.* 203.6 Approval of depositaries. Any application may be rejected or the applicant may be designated for a smaller maximum amount than that applied for. After receiving the recommendations of the Federal Reserve banks, the Secretary of the Treasury will designate approved depositaries.** 203.7 Designated depositaries must pledge collateral security before receiving deposits; acceptable securities. Designated depositaries will be required before receiving deposits to qualify by pledging as collateral security for such deposits, including interest thereon, securities of any of the following classes, to an amount, taken **For statutory and source citations, see note to § 203.1. Page 25 |