the postmaster has to obtain the necessary funds. If a withdrawal is made within 1 month from the date of issue as shown on the certificate, a service charge of 20 cents will be made for each certificate regardless of denomination.

(b) In person. The certificates will be paid at the office of issue if the postmaster is satisfied as to the identity of the holder. The postmaster must

(1) Identify the depositor with the information shown on his account Form PS 600. Compare fingerprints if equipment is available.

(2) Compute interest and enter the amount due on certificate. (Use monthly interest tables, Schedule 100-B for 1939 or earlier series, and Schedule 100-C for 1954 series.)

(3) Have the depositor sign the certificates in the postmaster's presence.

(4) If the certificate is less than 1 month old, collect a 20-cent service charge and stick a 20-cent postage stamp near the right border, just above the word "thereon".

(5) Pay from postal funds, or use Treasury (symbol 0001) check where authorized.

(6) If any payment is questioned, give the depositor a receipt on Form PS 305 for the certificates, and send the account, certificates, and a statement to the regional controller.

(c) Through a representative—(1) Designated on Form 304 When personal appearance is not possible, the holder of the account may designate a representative to make a withdrawal. When it has been shown to the postmaster's satisfaction that the holder cannot appear in person, the postmaster will give the representative Form 304, "Authorization to Pay Postal Savings Through a Depositor's Representative", for the depositor to fill out and sign. When the executed order and endorsed certificates are presented to the postmaster, he shall compare signature and other identification data on Form 304 with that on the Form PS 600; satisfy himself as to the identity of the applicant and of the representative and that the depositor wishes to withdraw funds; and complete transaction as stated in paragraph (b) of this section.

(2) Powers of attorney. Powers of attorney will be accepted only when executed by members of the Armed Forces of the United States serving abroad and must be accompanied with a statement from the attorney-in-fact that the de

positor is still living and is stationed outside the United States. The papers will be submitted by the postmaster to the Department for approval and no payment will be made until he has received approval.

(d) By mail. Withdrawals may be made by mail, using Form 315, "Depositor's Application to Withdraw Postal Savings by Mail", which will be furnished by the postmaster. A postmaster must witness the signing of the Form 315. The depositor must mail Form 315 and the signed certificates to the office where his account is held (depository office). If the postmaster at the depository office is satisfied as to the applicant's identity, he will follow directions and instructions on Form 315, pay by check or money order, and send payment by registered mail, if requested, to the depositor-deducting any money order or registry fees. The depository office will file Form 315 with the depositor's account card, Form PS 600.

(e) Withdrawal of bankruptcy funds. Certificates must be endorsed by the depositing officer or agent (or his successor, whose appointment must be evidenced by a court order) and, in addition, may be countersigned by another individual in his representative court capacity if it is the requirement of the referee having jurisdiction over the funds in question.

(f) By nonresident aliens-(1) Definition. A nonresident alien is a depositor who sends an application for withdrawal from a location outside of the continental United States, or its possessions or military establishments. Withdrawal may be made by mail or through a representative. See paragraphs (c) and (d) of this section.

(2) Interest on deposits. The interest on deposits made after March 1, 1941, is subject to withholding tax if the postmaster does not have information that the depositor is a citizen of the United States.

(3) Method of payment. Instructions on Form 304 or 315 shall be followed. A Treasury check, drawn to the order of the Board of Trustees, Postal Savings System, for the full amount of principal and interest due, shall be sent to the Bureau of Finance (Postal Savings), together with a completed Form PS 320, "Letter Transmitting Postal Savings Payments by Mail," name and address of depositor and of representative, if any, and any new certificates. If no checking

credit has been granted, the regional distributing postmaster should be asked to draw a check in favor of the Board of Trustees, Postal Savings System, and to send it to the Bureau of Finance (Postal Funds Division). The Bureau of Finance will deduct the tax and mail the payment to the depositor or representative.

(g) By levy for deficiency in federal income tax. (1) A postmaster served with notice of levy by Internal Revenue agent shall

(1) Put stop payment on account and notify depositor in writing of the levy served and request surrender of all or sufficient number of certificates to satisfy tax deficiency. Have depositor endorse certificates. Pay Internal Revenue Service and obtain receipt. File receipt with Form PS 600. Pay depositor any amount due on certificates above the amount of the levy.

(2) If certificates are not surrendered as requested within 10 days from date notice was mailed, prepare Form PS 607, "Depositor's Application for New Postal Savings Certificates," for duplicates for all or sufficient number of certificates to effect payment of levy. Attach notice of levy to Form PS 607 and send to regional controller. Regional controller will reissue certificates and retain notice of levy firmly attached to Form PS 607 as authority for reissue.

(3) When duplicates are received from regional controller, pay by check drawn in favor of the Internal Revenue Service. Obtain a receipt in duplicate for total amount paid. Enter on the margin of each unindorsed certificate "Paid Internal Revenue. See receipt enclosed." Enclosed receipt will serve in lieu of endorsement on certificates. Issue and mail to the depositor a check for any funds due him on a certificate where part of the amount represented by the certificate was used in payment of the amount set forth in the levy. Enter on the margin of that certificate $_ paid depositor by check No. will serve in lieu of a receipt.

This

(4) Treat paid certificates in usual manner. Annotate Form PS 600 to show that certificates were reissued and the purpose and that originals are void.

(h) Deceased depositors—(1) Accounts of $20 or less. A postmaster may, without specific authority, pay an account of $20 or less to the following upon presentation of proper evidence and written request by the applicant.

(i) Administrator or executor.

(ii) An entitled distributee or legatee on behalf of other distributees or legatees under a decree of distribution.

(iii) Surviving spouse, child, or parent, in the order named, or in the absence of any one of these, a brother or sister, if no administration on the depositor's estate has been asked for or granted.

(iv) The undertaker or other preferred creditor in the absence of administration or next of kin.

(2) Accounts over $20—(i) To whom payable-(a) Accounts that do not require administration. If a depositor dies intestate and the amount on deposit is $500 or less, or if the laws of the State in which the money is deposited provide either specifically or by court decision for the payment of a larger amount without administration, the next of kin, undertaker, person who paid the funeral expenses, or other preferred creditor may apply for payment.

(b) Accounts that require administration. When the amount on deposit is such that more than $500 will be available for distribution to heirs after allowing for payment of preferred claims, the amount due a deceased depositor in the final settlement of his account will be payable only to the legal representative appointed under the laws of the State in which the money is deposited, unless administration is not required by the State laws. Proper authority of the legal representative must be presented to the postmaster where the account is held.

(ii) Authority for payment. Certain large offices have been given specific authority by letter to pay accounts applied for by locally appointed administrators or executors. In all other cases at these offices and at all other offices, postmasters must report a depositor's death to the regional controller, using Form 1809, "Report of the Death or Incompetence of a Depositor", and await instructions before paying. All applications or legal papers that will be of assistance in settling the claim must be attached to the Form 1809. The following papers are necessary:

(a) When administration is required. (1) A legal representative must submit a court order certifying his appointment within the past year.

(2) A person designated by the court to receive the account must submit Form 1680, "Application for Payment of the

(1) Claim by a beneficiary under a will must (if the distributable balance is less than $500 and the State does not require the will to be probated) be submitted on Form 1680 with receipts mentioned in Form 1680, a certified copy of the will, and a Form 134, "Release", by each of the beneficiaries and/or entitled next of kin.

(2) Claim by one of the next of kin entitled by law to share in the estate, or by the person who paid the funeral expenses, must be submitted on Form 1680 if depositor dies without a will and not more than $500 will be available for distribution after allowing for payment of preferred claims. (Some States permit payment of a larger amount without administration.)

(3) Claim by undertaker or other preferred creditor must be submitted on Form 1672, “Application of Undertaker for Payment of Funeral Expenses From Funds to the Credit of a Deceased Depositor", with itemized statement of services rendered and a certification of claim by a responsible heir on Form PS 115-A, "Certification of Bill from Undertaker". The undertaker's receipted bill must be submitted if claimant is other than undertaker.

(4) Claim by foreign consular officer must be submitted on Form PS 112, “Application of Consular Officer for Payment of the Balance Remaining to the Credit of a Deceased Depositor", if the depositor is a United States resident, dies without a will, and is survived by alien heirs residing in a foreign country who are entitled to all or part of the amount of deposit.

(3) Payment. The signature of the payee(s) must be obtained on each certificate and on a receipt for interest due, in the following form: "John Doe by Richard Roe" (executor, widower, guardian, or other proper title). The account must be paid in full. The office copy of Form 1809 must be completed to show the date of payment, and must be placed with the paid certificate. (Clips or staples must not be used.) The amount of payment for accounts of $20 or less shall be endorsed on the written request of the applicant, and the request shall be placed with the paid certificate. (Clips or staples must not be used.) The

regional controller shall be advised if payment cannot be made.

depositors.

(i) Legally incompetent (1) The amount on deposit for mentally disabled or other legally incompetent depositors, other than minors, will be payable to the guardian, committee, conservator, or other legally appointed representative on presentation of proper evidence of appointment. A court order directing guardian to collect account of a minor is required before payment may be made to the guardian. When the depositor has been judicially declared incompetent and no guardian or other legal representative has been appointed and the gross value of the incompetent's estate is sufficiently small, application for withdrawal may be made by a State official or a member of the family if permissible under the laws of the State where the account is held.

(2) Postmasters at all offices shall handle claims for payment of accounts of legally incompetent depositors as provided in paragraph (h)(2) (ii) and (h) (3) of this section.

§ 63.6 Inactive accounts.

The main post office stations, and branches shall review Forms PS 600 once each year for inactive accounts and proceed as follows:

(a) Pull out accounts that have been inactive for 10 years. Whenever possible, turn them over to a supervisory official or designated employee who shall keep a control record of all accounts turned over to him. If inactive accounts cannot be taken from the custody of the postal savings clerk because of a limited office staff, they may be kept in the same file cabinet with the active accounts but shall be grouped separately. When a transaction occurs in an inactive account, return the account to the active files.

(b) Report accounts inactive or unclaimed for 20 years to the regional controller, and await instructions. Count the 20 years from date of last transaction or date of depositor's reply to an inquiry on Form PS 159 (now obsolete) whichever is later.

(c) When a depositor whose account has been transferred to the regional controller as unclaimed requests payment, furnish him a Form 315 and instruct him to complete and send it, together with the endorsed certificates, to the regional controller where the account is held. Payment will be made by the regional

controller direct to the depositor. Partial payment of unclaimed accounts will not be made; they must be paid in full. [27 F.R. 225, Jan. 9, 1962]

§ 63.7 Distribution of blank certificates.

(a) To window clerks. Ordinarily not more than one book of blank certificates of each denomination should be furnished at one time for use at a window. On delivery of certificates to him, a window clerk must count the individual certificates and examine them for sequence of serial numbers, and agreement with the inclusive numbers on the cover.

(b) To stations and branches. Stations and branches should not have more than a month's supply of certificates on hand. They must order certificates from the main office on Form PS 325, "Request for Postal Savings Certificates". § 63.8 Depositor's lost, stolen, or destroyed certificates.

(a) Report to postmaster. A depositor should advise the postmaster at the office where his account is held when any of his certificates are lost, stolen, destroyed, or improperly withheld. The postmaster will furnish the depositor with a Form PS 607, "Depositor's Application for New Postal Savings Certificates". If approved, new certificates showing the same information as the originals, but marked "Reissued", will be issued. If a certificate is found after it has been reissued, it must be given to the depository postmaster.

(b) Application for replacement. Form PS 607, "Depositor's Application for New Postal Savings Certificates", shall be prepared if depositor knows certificate cannot be recovered, following instructions on the form. If depositor is uncertain as to what happened to his certificates, he should be asked to search again and return in 10 days to fill out Form PS 607. (Exception may be made when delay will cause depositor hardship.) The serial numbers of the certificates should be verified against those on Form PS 600. The application must not be certified in the postmaster's name until the identification data in section E, page 4 has been verified with that on Form PS 600 to identify the applicant as the true depositor. Depositors must not be asked to apply for reissue of certificates to determine if the account record is correct. Any difference between item 39 of the postal savings records and the total of the Forms PS 600 should be shown on Form PS 607.

(c) Replacement. The regional controller may prepare replacement certificates and forward them to the postmaster. The postmaster shall verify all entries on the new certificates, deliver to depositor, and return to regional controller any with discrepancies. He shall record reissue by writing "R" in red next to the serial number of the original entry on Form PS 600. (Use "Remarks" column on old-style Form PS 600.) Where there is sufficient staff, the postmaster must not delegate custody of reissued certificates to a clerk who issues postal savings certificates or is responsible for maintenance of postal savings accounts and records.

(d) Disposition of recovered and undeliverable certificates. The postmaster shall mark recovered original certificate "Canceled", enter the date; send it to the regional controller with explanation; and return undeliverable replacement certificates to the regional controller for safekeeping.

[26 F.R. 11602, Dec. 6, 1961, as amended at 27 F.R. 225, Jan. 9, 1962]

§ 63.9

Office records and records of depositor's accounts.

(a) Recording deposits. The postmaster shall record deposits and post new balance on Form PS 600. The serial numbers of certificates issued shall be recorded on Form 713, "Postal Savings Certificate Transactions Daily Report", where this form is used.

(b) Recording withdrawals. Withdrawals shall be posted on Form PS 600, showing date of transaction "paid" in "Certificate Numbers" column, total amount of principal in "Transaction Amount" column, and the balance in "New Balance" column. The transaction must be dated opposite original issue of certificate in "Date Paid" column. The paying clerk must initial in "By" column. Certificates must be stamped "paid" with special paid date stamp and initialed. A report shall be made on Form 713 or Form 708 and the paid certificates shall be sent to postmaster daily. The postmaster must send the paid certificates with Form 704 or Form 714 to the regional controller office each accounting period.

(c) Verifying records of accounts. The postmaster shall verify records of accounts as follows:

(1) Daily verification. Do not file Forms PS 600 which have been withdrawn in the day's business until the

the balance in item 39 of Form 704 or 714 with the total of the balances on the depositors' Forms PS 600 every 6 months. If the totals do not agree, check addition or subtraction on depositor's cards. If no error is found, check the entries on the cards with the records of certificates issued and paid. Place a dummy account card, Form PS 600, in the front of the file, on which enter the amount of the difference (circling the amount if the total of the balances of the Forms PS 600 is in excess of the amount in item 39 of the Form 704 or 714.) Report to the regional controller for additional instructions only when an unusual situation arises.

(d) Filing and closing accounts. The postmaster shall file and close accounts as follows:

(1) Filing. File the Forms PS 600 numerically by account numbers. Maintain an alphabetical cross-index card file (if many accounts) showing the depositor's name and account number.

(2) Closing. Mark the depositor's Form PS 600 "Account Closed" when all certificates issued to a depositor have been paid. Place in a separate file with other closed accounts in numerical order. Do not use the number of a closed account in opening a new account.

(e) Correcting errors on records. The postmaster shall correct errors as follows:

(1) Draw a line through an erroneous entry and initial. (Do not make the original entry illegible.) Make the correct entry on the line below or by interlining immediately above the erroneous entry.

(2) Advise the regional controller office if an error is discovered after the accounting period report has been submitted which in any way affects the accuracy of the report.

(f) Reporting loss of records. The postmaster shall report promptly to the regional controller any loss or major damage of postal savings records by fire, burglary, or any other cause.