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F ederal reserve Ba n k DALLAS, TEXAS of Dallas 7S222 Circular 70-135 June 2, 1970 INSTRUCTIONS CONCERNING CHECKS ISSUED TO RESIDENTS OF THE REPUBLIC OF THE PHILIPPINES AMENDMENT TO UNITED STATES TREASURY DEPARTMENT CIRCULAR NO. 21 To All Banks and Others Concerned in the Eleventh Federal Reserve District: Enclosed is a copy of instructions concerning checks issued to residents of the Republic of the Philippines and an amendment dated April 22, 1970, to United States Treasury Department Circular No. 21, governing the indorsement and payment of checks drawn on the Treasurer of the United States. The Treasury Department asks that we point out that the Amendment extends the authorized use of special powers of attorney to negotiate checks drawn on the Treasurer to financial organizations as defined in 360.2. However, the Amendment does not in any way alter the 12month limitation on the validity of such powers (see section 3^0.12 (c) nor your responsibility, for your own protection as well as the Government’s, to contact annually your customers who have given special powers of attorney in your favor for renewal of those powers. Please encourage your employees to review the provisions of Circular No. 21, as now amended. Additional copies will be furnished upon request. Yours very truly, P. E. Coldwell President Enclosure This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) INSTRUCTIONS CONCERNING CHECKS ISSUED TO RESIDENTS OF THE REPUBLIC OF THE PHILIPPINES TO FEDERAL RESERVE BANKS, INCORPORATED BANKS AND TRUST COMPANIES, AND OTHERS CONCERNED: 1. To assist the Government of the Republic of the Philippines in making its Foreign Exchange Regulations effective, the Treasury Department is overprinting checks drawn on the Treasurer of the United States for delivery to residents of the Philippines, with the following legend, in red ink, in the manner illustrated on the reverse hereof: "This check payable only through Manila office First National City Bank. Payment will be made in accordance with Philippine Foreign Exchange Regulations.rr The Philippine Foreign Exchange Regulations generally require the sale to authorized agents of the Philippine Central Bank of all Foreign Exchange negotiable instruments received by any person or entity residing, or located, in the Philippines. 2. United States Treasury checks bearing the legend shown should, therefore, be negotiated in the Philippines through authorized agents of the Philippine Central Bank. The authorized agents will present the checks for payment through the Manila Branch, First National City Bank, New York. The Manila Branch of the First National City Bank will accept checks bearing the over print only from authorized agents of the Philippine Central Bank and will not accept such checks from other sources either within or outside of the Philippines. Treasury checks bearing the legend in question should not be accepted by banks in the United States and the routing symbol thereon should, therefore, be disregarded. All banking institutions of the United States receiving Treasury checks bearing the legend shown above should return them without credit to the person or other entity from which received, calling attention to the red legend on the checks. 3. Apart from the foregoing, we would also like to call the attention of all banks to the requirements of Treasury Department Circular No. 21, Revised October 9, 1967, 31 CFR 360.12 for the execution of a general or special power of attorney under the 2 conditions set forth in subsections (b) and (c). Particular atten tion is directed to subsection (f) of this section which requires the acknowledgement of the power of attorney in a foreign country to be made before a United States diplomatic or consular repre sentative, or by a foreign notary whose official character and jurisdiction is certified to by a United States diplomatic or consular officer. See instructions on the reverse Power of Attorney Forms designated as Standard Forms 231 and 233. TREASURY T H I S C H E C K PAY Check No. ACCOUNTS l£ -------- D I V I S I O N OF DISBURSEMENT F I R S T N A T I O N A L CI TY BA N K. P A Y M E N T WI LL BE MA D E IN A C C O R b A N C E WI TH P H I LI P PI N E F O R E I G N E X C H A N G E R E G U L A T I O N S * 3^ 529*147 SYMBOL 3280 PAY TO THE ORDER OF M“ NO CHECK ISSUED UNOER THIS HUMBER i: o o o o * d o 5 u : OFFICE OF THE TREASURER OF THE UNITED STATES 1970 GPO 891-883 TITLE 31 - MONEY AND FINANCE: TREASURY CHAPTER II - FISCAL SERVICE, DEPARTMENT OF THE TREASURY SUBCHAPTER C - OFFICE OF THE TREASURER OF THE UNITED STATES PART 360 - INDORSEMENT AND PAYMENT OF CHECKS DRAWN ON THE TREASURER OF THE UNITED STATES / D e p a r tm e n t C irc u la r N o . 21 (S econd R e v is io n , F ir s t A m e n d m e n t]/ P art 3 6 0 ,_ S u b c h a p te r C , C h a p te r II of T itle 31 of th e C ode of F e d e ra l R e g u la tio n s / a l s o a p p e a rin g a s T re a s u ry D e p a rtm e n t C irc u la r N o. 2 1 , R e v is e d , d a te d O c to b e r 9 , 19677 *s h e re b y a m e n d ed e f f e c tiv e M ay 1, 1970 in th e fo llo w in g w a y s: 1. S e c tio n 3 6 0 .2 is a m e n d ed by a d d in g b elo w th e d e f in itio n of " F e d e r a l R e s e rv e Bank" a new d e f in itio n to re a d : " F in a n c ia l o rg a n iz a tio n " m ean s a n y b a n k , s a v in g s b a n k , s a v in g s an d lo a n a s s o c i a t i o n or s im ila r i n s t i t u t i o n , or F e d e ra l or S ta te c h a r te r e d c r e d it u n io n . 2 . S e c tio n 3 6 0 .8 (b ) is a m e n d e d to d e l e t e th e w ord " b a n k " w h e re v e r it a p p e a rs an d s u b s t i t u t e th e re fo r th e term " f in a n c ia l o r g a n iz a t io n " , an d to re v o k e th e f in a l s e n t e n c e t h e r e o f , s o a s to re a d : (b) In d o rse m e n t of c h e c k s by a f in a n c ia l o r g a n iz a tio n u nder th e p a y e e 's a u t h o r i z a t i o n . — W h en a c h e c k is c r e d ite d by a f in a n c ia l o r g a n iz a tio n to th e p a y e e 's a c c o u n t u n der h is a u th o r iz a tio n , th e f in a n c ia l o r g a n iz a tio n may u s e a n in d o rs e m e n t s u b s t a n t i a l l y a s fo llo w s : " C re d it to th e a c c o u n t of th e w ith in - n a m e d p a y e e in a c c o r d a n c e w ith p a y e e 's or p a y e e s ' i n s t r u c t i o n s . A b sen ce o f in d o rs e m e n t g u a r a n te e d . XYZ" A f i n a n c ia l o r g a n iz a tio n u s in g t h is form of in d o rs e m e n t s h a l l be d e e m e d to g u a ra n te e to a l l s u b s e q u e n t in d o rs e rs an d to th e T re a s u re r t h a t it is a c t in g a s a n a tto rn e y in f a c t for th e p a y e e or p a y e e s , u nd er h is or t h e i r , a u th o r iz a tio n . 3 . S e c tio n 3 6 0 . 8(c) is a m e n d ed to d e l e t e th e p h r a s e " a s d e fin e d in Part 209 of t h is c h a p te r" , so a s to re a d : (c) In d o rs e m e n t o f c h e c k s d ra w n in fa v o r of f i n a n c ia l o r g a n i z a t i o n s . — All c h e c k s d raw n in fa v o r of f in a n c i a l o r g a n i z a t i o n s , for c r e d it to th e a c c o u n ts of p e rs o n s d e s ig n a tin g p ay m e n t s o to be m a d e , s h a ll be in d o rs e d in th e nam e of th e f i n a n c ia l o r g a n iz a tio n a s p a y e e in th e u s u a l m a n n e r. m - 2 - F in a n c ia l o r g a n iz a tio n s re c e iv in g an d in d o rs in g s u c h c h e c k s s h a ll com ply fu lly w ith P a rt 2 09 of th is c h a p te r (T reasu ry D e p a rtm e n t C irc u la r N o . 1 076, R e v ise d ). 4 . S e c tio n 3 6 0 . 12(b) is a m e n d ed to d e l e t e in th e o p e n in g c l a u s e th e word " b a n k " a n d s u b s t i t u t e th e re fo r th e term " f in a n c ia l o r g a n i z a t i o n " , so a s to re a d : (b) G e n e ra l p o w ers o f a tto r n e y . — C h e c k s i s s u e d for th e fo llo w in g c l a s s e s o f p a y m e n ts may be n e g o tia te d u nder a g e n e r a l p o w er of a tto rn e y in fa v o r of a n in d iv id u a l, f in a n c ia l o r g a n iz a tio n or o th e r e n tity : (1) P a y m e n ts p r in c ip a l (2) P a y m e n ts (3) P a y m e n ts for th e re d e m p tio n of c u r r e n c ie s o r for or i n t e r e s t on U n ite d S ta te s s e c u r i t i e s . for ta x r e f u n d s . for g o o d s an d s e r v i c e s . 5 . S e c tio n 3 6 0 . 12(c) is a m e n d ed by d e le tin g th e in te r n a l n u m b e rin g , an d by d e le tin g th e te rm s " b a n k in g i n s t i t u t i o n or t r u s t co m p any " a n d s u b s tit u tin g th e r e f o r th e term " f in a n c ia l o r g a n iz a tio n " , s o a s to re a d : (c) S p e c ia l p o w e rs of a t t o r n e y . — U nder d e c i s i o n s of th e C o m p tro ller G e n e r a l of th e U n ite d S t a t e s , c l a s s e s o f c h e c k s o th e r th a n th o s e s p e c if i e d in p a ra g ra p h (b) of t h i s s e c tio n may be n e g o tia te d u n d er a s p e c i a l p o w er o f a tto rn e y w h ic h n a m e s a f in a n c ia l o r g a n iz a tio n a s a tto rn e y in f a c t; is lim ite d to a p e rio d not e x c e e d in g 12 m o n th s , an d r e c i t e s th a t it is not g iv e n to c a rry in to e f f e c t a n a s s ig n m e n t of th e rig h t to r e c e iv e p a y m e n t, e ith e r to th e a tto r n e y in f a c t or to a n y o th e r p e r s o n . 6 . The a p p e n d ix is a m e n d e d by d e le tin g from th e d e s c r ip t io n of S ta n d a rd Form 233 th e te rm s " r e s p o n s ib le b a n k in g i n s t i t u t i o n or t r u s t com p an y " a n d s u b s tit u tin g th e r e f o r th e term " f in a n c ia l o r g a n i z a t i o n " , so a s to re a d : A p p en d ix — S ta n d a rd Forms For Pow er o f A ttorney And T heir A p p lic a tio n * * * * * * * * S ta n d a rd Form 2 3 3 . — A s p e c i a l p o w er of a tto rn e y o n th is form nam ing a f i n a n c i a l o r g a n iz a tio n a s a tto rn e y in f a c t , lim ite d to a p e rio d not to e x c e e d 12 m onths an d r e c itin g th a t it is not g iv e n to c a rry in to e f f e c t an a s s ig n m e n t of th e rig h t to r e c e iv e th e p a y m e n t, e ith e r to th e a tto rn e y in f a c t or to a n y o th e r p e r s o n , may be u s e d fo r c l a s s e s o f p a y m e n ts o th e r th a n t h o s e sh o w n u n d e r S ta n d a rd Form 2 3 1 . * D a te d : * A pril 22, 1970 * * * * * * GP 0 89 2-
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