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Federal

reserve

OF

Bank

DALLAS

Dallas, Texas, April 18, 1958

NEGOTIATION OF GOVERNMENT CHECKS
UNDER POWERS OF ATTORNEY

To all Banks in the
Eleventh Federal Reserve District:

The Treasury Department has recently called the attention of this bank
to possible exposure of banks and trust companies in endorsing certain
Treasury checks as agents for the payees. A copy of the Treasury’s notice
is printed on the reverse side of this circular for your information.
Banks may wish to review existing powers of attorney relating to Gov­
ernment checks for compliance with Treasury instructions. Any questions
concerning such powers of attorney may be submitted to the Treasurer of
the United States for review.

Yours very truly,

Watrous H. Irons
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TH E

S E C R E TA R Y

O F TH E

TR E A S U R Y

W ASHINGTON

April k, 1958
TO:

ALL BANKS AND TRUST COMPANIES

This Department has determined that a substantial number of residents
of the Philippine Islands entitled to pensions and retirement pay from the
United States Government have arranged to have the Treasury checks issued
to them for these payments delivered in care of banking institutions in
the United States and have authorized the banks to negotiate such checks
under powers of attorney. It has been determined also that in many cases
the powers of attorney were not executed in accordance with Treasury
instructions relating to such forms.
Treasury instructions (Treasury Power of Attorney Form No. 6 7 H )
applicable to the execution of powers of attorney for the collection
of checks issued for these types of payments provide in pertinent part
as follows:
"...This power of attorney must name a responsible banking in­
stitution or trust company as attorney, must be limited in dura­
tion to a specified 12-*month period, and must recite that it is
not given to carry into effect an assignment to the attorney, or
to any other person, of the right to receive the payments therein
described."
"This power of attorney should be acknowledged before a notary
public or other officer authorized by law to administer oaths
generally. If in a foreign country, the acknowledgment should be
made before a United States diplomatic or consular representative.
If such an officer is not available, it may be acknowledged before
a notary or other officer authorized to administer oaths, but his
official character and jurisdiction must be certified by a United
States diplomatic or consular officer, under the seal of his office."
This matter is being brought to the attention of banks and trust companies
in order that they may be in a position to guard against the acceptance of
Treasury checks for collection under powers of attorney that are not proper
in every respect. It is important to point out that in most cases which have
come to the attention of this Department there is no personal contact between
the payees of the checks and the banks; therefore, the possibility of checks
being negotiated for a period of several months after the death of a payee and
before notice of such happening has been received by the Treasury or the banks
should be of concern to banks and trust companies.
If banks or trust companies have on file powers of attorney concerning
which there may be questions, banks may, if they so desire, submit copies of
same to the Treasurer of the United States,
for review.

Ac

d
Treasury


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102