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F ed er a l r e s e r v e Ba n k o f D allas
DALLAS, TEXAS
75222
C irc u la r No. 76-47
March 30, 1976
American Revolution Bicentennial
FISCAL AGENCY OPERATING CIRCULAR NO. 3
TO A L L BANKS,
OTHER FINANCIAL ORGANIZATIONS,
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE D IS T R IC T:
Enclosed is a copy of new Fiscal Agency O perating C irc u la r No. 3,
"Federal R ecu rrin g C re d it Paym ents," which becomes effective at the Federal
Reserve Offices in this D is tric t on A p ril 1, 1976. O perating C irc u la r No. 3 sup er
sedes Bulletin No. 15, transm itted with our C irc u la r No. 75-95, dated June 30,
1975.
Th is operating c irc u la r provides the terms and conditions upon which
this Bank, as fiscal agent of the United States, handles and distrib u tes Federal
re c u rrin g c red it payments on media designed to facilita te electronic processing,
and upon w hich banks and other financial organizations receive such payments
for c re d it to th e ir depositors' accounts.
Implementation of the electronic phase of the Social S ecurity D irect
Deposit Program w ill be phased o ve r a period of three months. T h e live im ple
mentation dates for the Eleventh D is tric t Offices a re as follows:
Office
Dallas
El Paso
Houston
San Antonio
Effective Date
August 1,
September
September
October 1,
1976
1, 1976
1, 1976
1976
If you have any questions re g ard in g this m atter, please contact at the
Head Office eith er Johnny L . Johnson at (214) 651-6188 or Jack A . C lym er at
651-6337, or any officer at the Branches.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
- 2 -
T h e enclosed copy of Fiscal Agency O perating C irc u la r No. 3 should
be filed in yo u r Regulations B inder behind the operating b ulletins of this Bank.
Additional copies, as w ell as copies of Fiscal Agency O perating C irc u la rs Nos. 1
and 2, entitled "Instructions to A ll Issuing Agents of United States Savings Bonds
of Series E in the Eleventh Federal Reserve D is tr ic t," and "T eleg rap h ic T ra n s fe rs
of M arketable T re a s u ry and Agency Securities in B earer or B o ok-E ntry Form
Between Federal Reserve B a n ks," re s p e c tiv e ly , w ill be fu rn is h ed upon request to
the S e creta ry 's Office of this Bank. A separate tab u lar m a rk in g , denoting a spe
cial section for these three c ir c u la r s , w ill be furnished in the fu tu re .
S in ce re ly y o u rs ,
T . W. Plant
F irs t V ice President
Enclosure
FISCAL AGENCY OPERATING
CIRCULAR NO. 3
Federal Recurring
Credit Payments
FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENT OF THE UNITED STATES
SCOPE
This operating circular provides the terms and conditions upon which this Bank, as
fiscal agent of the United States, handles and distributes Federal recurring credit paym ents
on media designed to facilitate electronic processing, and upon which banks and other
financial organizations receive such payments for credit to their depositors’ accounts.
FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENCY OPERATING CIRCULAR NO. 3
TABLE OF CONTENTS
2.15 Availability — payments
Section 1, GENERAL
1.00 Right to alter circular
2.20 Availability — funds
1.05 A uthority
2.25 Delays
1.10 Terms
2.30 Error verification
1.15 References to this Bank
2.35 Crediting recipients
1.20 Agreement
2.40
1.25 Effect of this
bulletin
circular on
Section 3, RETURN OF CREDIT PAYMENTS
previous
3.00 General
3.05 Format
Section 2, HANDLING OF CREDIT PAYMENTS
3.10
2.00 Designation of receiving office
Records maintenance
Section 4, LIABILITY
2.05 Delivery, pick up and mailing — direct
4.00 General
2.10 Delivery, pick up and mailing — through
agent
4 -1 -7 6
Error reporting
4.05 O ther
i
FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENCY OPERATING CIRCULAR NO. 3
Section 1, GENERAL
1.25 Effect o f this circular on previous bulletin
1.00 Right to alter circular
This circular supersedes Bulletin No. 15, revised
effective June 30, 1975, in its entirety as of the
date at the bottom of this page.
The right is reserved to w ithdraw, to add to, or
to amend, at any time, as to any or all financial
organizations, any of the provisions of this op
erating circular.
1.05 Authority
Section 2, HANDLING OF CREDIT
PAYMENTS
2.00 Designation o f receiving office
This operating circular, issued pursuant to the
provisions of Sections 4, 13, 14(e), and 15 of the
Federal Reserve Act and Section 210.3(a) of Title
31 of the Code of Federal Regulations and in
conformity w ith Part 210 of Title 31 of the Code
of Federal Regulations (hereinafter referred to
as Part 210), prescribes the terms and conditions
upon which this Bank will handle and distribute
Federal recurring payments. Part 210 and the
terms and conditions of this operating circular
will apply to the handling of credit payments.
Each financial organization shall designate one
office or location acceptable to us where it will
receive credit payments, notwithstanding the
fact that such financial organization m aintains
several branches or offices or m aintains branches
or offices in more than one Federal Reserve ter
ritory. However, we, in our sole discretion, may
perm it a financial organization to designate more
than one office or location for the receipt of
credit payments. W here eligible, a financial or
ganization may pick up credit payments at this
Bank.
1.10 Terms
2.05 Delivery, pick up and mailing — direct
Section 210.3(a) of Part 210 provides that each
Federal Reserve Bank m ay issue operating cir
culars not inconsistent w ith the provisions of
that part governing the details of its credit pay
m ent handling operations and containing such
other m atters as are required or perm itted by
such provisions. Except as otherwise defined
below, all terms defined in Part 210 and used
herein have the meanings stated in that part.
1.15 R eferences to this Bank
Unless otherwise stated, all references to the
Federal Reserve Bank of Dallas or “this Bank”
include the Head Office and its El Paso, Houston,
and San Antonio Branches.
1.20 Agreem ent
By its action in maintaining or using an account
on our books and in receiving credit payments
from us, each financial organization shall be
deemed to agree to the terms and conditions of
this operating circular. A designated correspon
dent member bank in authorizing a financial or
ganization to utilize such designated correspon
d ent’s account on our books for the purpose of
receiving the am ount of a credit paym ent shall
be deemed to agree to the terms and conditions
of this operating circular.
We will deliver credit payments direct to finan
cial organizations and processing centers on ex
isting courier routes, if volume w arrants. If
credit payments are not so delivered, such credit
payments may be picked up by such financial
organizations at this Bank, or we may mail such
credit payments to such financial organizations.
2.10 Delivery, pick up and mailing — through
agent
Pick up of credit payments in appropriate cir
cumstances may be made by the designated
agent of a financial organization; credit pay
m ents will also be mailed to a financial organi
zation’s designated agent. A processing center
is a designated agent which processes credit
payments for more than one financial organiza
tion (including itself if it is a financial organiza
tion).
2.15 A vailability — paym ents
Credit payments will be furnished in the form at
designated by us and on the medium designated
to us by a financial organization, and set forth
in technical specifications made available by us.
Credit payments will be made available by us
to a financial organization or its designated agent
not later than the close of business for such
financial organization on the business day prior
to the paym ent date. Receipt by a designated
FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENCY OPERATING CIRCULAR NO. 3
agent of a credit paym ent shall be deemed re
ceipt by the financial organization.
ceived on magnetic tape, the financial organiza
tion would act promptly to ensure that such tape
is readable and does not contain form at errors
and that the total dollar amount of credit pay
ments on such tape agrees w ith the file total on
such tape.
2.20 A vailability — funds
At our opening of business on the paym ent date,
we will make the amount of all credit payments
delivered to a financial organization available
for w ithdraw al or other use by such financial
organization or its designated correspondent
maintaining an account w ith us. We will send
an advice of credit to such financial organization
or designated correspondent. Such advice may
be aggregated each day for each financial or
ganization.
2.25 Delays
While we will handle credit payments promptly
and it is expected that credit payments will be
made available to each financial organization
during the business day prior to the payment
date, no representation of such availability is
made by us. Notice of any significant delay in
the handling of a credit paym ent will be given
to the financial organization w ithin a reasonable
time after we obtain knowledge of such delay.
If a financial organization does not receive a
delivery of credit payments w ithin the usual
time for such receipt or has reason to believe
that such credit paym ent delivery might be lost
or delayed in transit, such financial organization
should notify us by collect telephone call of
such apparently lost or delayed shipment.
Office
Dallas
El Paso
Houston
San Antonio
Area
Code
Telephone
Number
Extension
Number
214
915
713
512
651-6189
544-4730
659-4433
224-2141
—
53
16
59
2.30 Error verification
Each financial organization receiving a batch of
credit payments on a medium other than mag
netic tape should act promptly to ensure that
the total dollar am ount of the credit payments
received agrees w ith the dollar amount stated in
the transm ittal register accompanying such batch
of credit payments. If credit payments are re
2.35 Crediting recipients
As provided in Section 210.7(d] of Part 210, a
financial organization receiving a credit pay
ment as provided in paragraph 2.15 hereof shall
credit the am ount of such credit paym ent to the
appropriate account of the recipient on its books
and shall make the amount of such credit pay
ment available for w ithdraw al or other use by
the recipient not laler than the opening of busi
ness on the paym ent date.
2.40 Error reporting
If the credit payments or any related documenta
tion received by a financial organization from us
do not balance, are incomplete, are clearly er
roneous on their face, or are incapable of being
processed, such financial organization, after as
suring itself that neither it nor its agent is
responsible for such problem and that it is un
able to correct promptly such problem, shall
give us immediate notice by collect telephone
call of such problem in order that we may de
liver or make available corrected material to
such financial organization.
Section 3, RETURN OF CREDIT
PAYMENTS
3.00 General
If, as provided in Section 210.7(e) of Part 210,
a financial organization is unable to credit the
amount of a credit paym ent to the appropriate
account of the recipient, such financial organi
zation should promptly return that credit pay
m ent to us w ith a statem ent identifying the
reason therefor.1 A financial organization should
also return promptly to us any credit paym ent
to be returned as provided in Section 210.7(f) of
Part 210. Upon receipt of any such credit pay
ment, we shall debit the account of such finan
cial organization or its designated correspondent
m em ber bank on our books in the amount of
such credit payment.
1 I n t h e c a s e o f c r e d it p a y m e n t s i s s u e d b y th e U.S. A ir F o rc e , a fin a n c ia l o r g a n iz a tio n s h o u ld n o tif y th e A ir F o rc e
A c c o u n tin g a n d F in a n c e C e n te r.
FEDERAL RESERVE BANK OF DALLAS
FISCAL AGENCY OPERATING CIRCULAR NO. 3
3.05 Format
person other than to the Departm ent of the
Treasury. We shall not be liable for the insol
vency, neglect, mistake, misconduct, or default
of another person or for the loss or destruction
of a credit paym ent in transit or in the posses
sion of others.
Credit payments should be returned to us in the
form at specified by us and on the medium agreed
to by us and such financial organization. Re
turned credit payments m ust be accompanied by
a transm ittal form, in the form at specified by us,
setting forth the num ber of credit payments re
turned, the aggregate amount of such payments,
and the name and routing num ber of the desig
nated correspondent m em ber bank whose ac
count on our books was credited w ith the
am ounts of such credit payments.
3.10 Records m aintenance
Each financial organization returning a credit
paym ent to us for any reason should maintain
adequate records to perm it the reproduction or
tracing of any lost or destroyed credit payment.
Section 4, LIABILITY
4.00 General
In connection w ith the m atters specified in Part
210 or this operating circular, we shall not have,
nor shall w e assume, any responsibility to any
4.05 Other
A recipient or beneficiary of a credit payment,
or a financial organization w ith respect to its
designated correspondent, shall have no right of
recourse upon, interest in, or right of paym ent
from, any reserve balance, clearing account, de
posit account, or other funds of the Government,
a designated correspondent bank, or, in the case
of a recipient or beneficiary, a financial jjrganization, in the possession of this Bank.
APPENDIX A
E xtract From
FEDERAL REGISTER,
VOL . 40, NO . 197,
T h u r s d a y , O ctober 9, 1975,
p p . 47492 - 47495
Title 31— Money and Finance: Treasury
CHAPTER II— FISCAL SERVICE, DEPART
MENT OF THE TREASURY
subchapter a— bu reau of g o v e rnm en t
FINANCIAL OPERATIONS
PART 210— FEDERAL RECURRING PAY
MENTS THROUGH FINANCIAL ORGA
NIZATIONS BY MEANS OTHER THAN
BY CHECK
Payment to Recipients
On April 14, 1075, there was published
in the F k d i r a l R i g i s t b r (40 FR 16669),
a notice of proposed rulemaking to
amend Title 31 of the Code of Federal
Regulations by th e addition of a new
P a rt 310 to govern the making of recur
ring payments by the Federal Govern
m ent to recipients by means other th a n
by check. Tills P a rt would prescribe a
new method for making payments In
volving the preparation by the Govern
m ent of magnetic tapes reflecting the
necessary data to accomplish payment
to recipients who have chosen to be paid
by credit to their accounts In financial
organizations. Delivery of the data by the
Government to the Federal Reserve Bank
would constitute an issuance by the Gov
ernm ent of orders for the payment of
money which would be made available
by the Federal Reserve Banks, using Fed
eral Reserve distribution systems, to
those financial organizations which have
been designated by recipients and which
have agreed to participate in this system
and to accept payments for the recipi
ents. Federal Reserve Banks would make
the dollar amounts of such orders avail
able to the financial organizations which
would in tu rn credit th e funds to the
recipients’ accounts on the books of the
financial organizations.
Participation In this program of pay
m ents made through financial organiza
tions rather th an directly to recipients
would be voluntary for recipients and
financial organizations, and as applied
to recipients and financial organizations
would be based on the completion by
each of its part of a Standard Author
ization Form. However, after execution
of such Form, the method of payments,
w hether by check pursuant to P arts 2091
and 240 of this title or by means other
th an check pursuant to this P art, is op
tional with the Government and th e fi
nancial organization. The option of pay
m ent by Government check directly to
recipients would remain with recipients.
Interested parties were given 60 days
from th e date of publication of the notice
to comment on the proposed regulation.
Numerous comments were received both
during and after the notice period from
trade associations representing th e fi
nancial community, Individual financial
organizations, interested Federal agen
cies, and representatives of the Federal
Reserve Board and the Federal Reserve
Banks. The Treasury Departm ent con
sidered all of the Issues raised by these
comments, and, where appropriate,
modified the proposed regulations In
order to accommodate suggestions made
In those continents.
The principal differences between the
final regulation and the proposed regula
tion are as follows:
1. The definition of “Recurring pay
m ent” in proposed 8 210.2(h) was
amended by the addition of th e paren
thetical phrase “ (or allotm ent there
from) ” after the phrase “or other pay
m ent" to make clear th a t an allotm ent
from a “recurring payment" Is separate
and distinct from the payment from
which It Is deducted and Is Itself a re
curring payment.
2. The definition of “Standard Author
ization Form” in proposed ! 210<2(J) was
1T he D epartm ent of tb s T reasury wUI
sh ortly p u b lish • n o tice at propoM d ru lorr>string tO M K M l li P u t 309, to pTDflU* OOHformlty an d consistency w ith th* n t v Fart
3X0.
am ended to provide th a t only th e T rea
sury D epartm ent, as opposed to any pro
gram agency, can prescribe a “Standard
A uthorization Form .”
3. Proposed {21 0 .4 (h ) provided th a t
any change in th e title o f an account
w ould term inate a Standard A uthoriza
tion Form in w hich th a t account was
designated. Under th e final { 2 1 0 .4 (h ),
only a change in th e title o f an account
w hich would cause a program agency to
review th e deposit of a recurring pay
m ent to th a t account term inates th e
Standard A uthorization Form. Further,
in situ ation s where th e Standard A uthor
ization Form Is term inated by a change
in th e account title, a financial orga
n ization can continue to credit paym ents
to th a t account after a new Standard
A uthorization Form has been executed
(5 210.7(f) ( i ) ) .
4. Proposed S 2 1 0 .6 (c), w hich provided
th a t th e G overnm ent could recall a
credit paym ent a t any tim e prior to the
paym ent date, w as elim inated from th e
fin al regulations as being, in som e cases,
unduly burdensome to financial organi
zations. T he elim ination o f th is section
does n ot preclude th e G overnm ent from
n otifyin g a financial organization to
w ithhold a credit paym ent nor relieve th e
fin an cial organization o f th e duty of
m aking a reasonable effort to com ply
w ith such notice.
5. Proposed $ 210.7 was modified, in ter
alia, w ith th e substitution of a new sub
section ( e ) . T he requirem ent in th e pro
posed subsection (e) —th a t th e financial
organization n otify th e program agency
o f “any event actually known by it”
w hich would preclude crediting of an ac
count—was elim inated since it placed
th e duty o f m aking difficult factu al de
cisions on individual financial organi
zations. It is believed th a t 9 210.7(f) w ill
provide adequate notice to th e Govern
m en t in such situations. T he new sub
section (e) was added to more clearly
specify w hat inform ation in th e credit
paym ent th e financial organization can
rely on, and th e procedures to be follow ed
If financial organizations are unable to
credit the proper account based on th is
Inform ation.
6. Proposed § 210.7(f) (iii) and (iv)
were modified, th e form er since proposed
§ 210.7(e) was elim inated, and the latter
sin ce th e only notice of term ination to
th e financial organizations in m ost cases
w ill be th e failure to receive an expected
credit paym ent.
7. Proposed I 210.9 was m odified by th e
addition of a sentence defining th e term
"knowledge” used in S 210.9(a) ( i i) . Other
m odifications were m ade in th is section
to clarify th e financial organization’s
(1) duty to recover withdrawn credit
paym ents and (2) responsibilities w ith
respect to funds still in th e account.
8. In S 210.10(b) there was added an
Indem nification o f th e financial orga
nization by th e U nited S tates up to th e
am ount o f th e credit paym ent in situ a
tions w here th e financial organization is
rendered liable because it acted on in
correct Inform ation in a credit paym ent.
Other, less sign ifican t changes were
m ade in various other sections o f th e
Part.
Accordingly, Subchapter A, C hapter II,
T itle 31 o f th e Code o f Federal R egula
tions is, as o f January 1, 1970, amended
by th e addition o f a new Part, designated
P art 210, to read as follow s:
Bee.
210.1
3 1 0 .3
Scope of regulations.
Definitions.
310.3
310.4
310.5
310:8
310.7
310.8
310.9
Federal Reserve Banks.
R ecipients.
Program agencies.
T he G overnm ent.
F inancial organizations.
T im eliness of actio n .
D eath o r legal Incapacity of re
cipients or d eath of beneficiaries.
210.10 L iability of, and acq u ittan ce to , th e
U nited States.
A u t h o r i t y : 5 U.S.C. 3 0 1 ; 1 3 U.S.C. 3 9 1 ;
T itle 3 1 , U.S.C., and o th er provisions of law.
§ 210.1 Scope of regulations.
T his P art governs th e m aking of re
curring paym ents by th e G overnm ent, by
m eans other th an by check, through F ed
eral Reserve Banks and financial orga
nizations to recipients m aintaining ac
counts a t such financial organizations.
§ 210.2 Definitions.
As used in th is Part, unless th e context
otherw ise requires:
(a) “Federal Reserve B ank” m eans
any Head Office or B ranch Office of any
such Bank, acting as F iscal Agent of th e
U nited States.
(b) "Financial organization” m eans
any bank, savings bank, savings and loan
association or sim ilar Institution, or
Federal or S tate chartered credit union,
w hich was affirm atively indicted to a
Federal R eserve Bank its preparedness to
receive credit paym ents under th is Part.
(c) “G overnm ent” m eans th e Govern
m en t o f th e U nited S tates, th e D epart
m ent of th e Treasury, a Federal disburs
in g office, and a program agency w hich
h as m ade arrangem ents w ith th e D e
partm ent of th e Treasury to m ake pay
m ents under th is Part, or any o f them .
(d) "Credit paym ent” m eans an order
for th e paym ent of m oney issued by th e
G overnm ent under th is P art to pay a re
curring paym ent. A credit paym ent m ay
b e contained on (1) a letter, m em oran
dum, telegram , com puter print out or
sim ilar writing, or (2) any form of com
m unication other th an voice, w hich is
registered upon m agnetic tape, disc or
any other medium designed to capture
and contain in durable form conven
tional signals used for th e electronic
com m unication of m essages.
(e) "Payment date” m eans th e date
specified for a credit paym ent. Such date
is the date on which the funds specified
in th e credit paym ent are to be available
for w ithdrawal from th e recipient’s a c
count w ith th e financial organization
specified by such recipient, and on w hich
such funds are to be m ade available to
the financial organization by th e Fed
eral Reserve B ank w ith w hich th e finan
cial organization m aintains or utilizes
an account. If th e paym ent date is n ot a
business day for th e financial organiza
tio n receiving a credit paym ent, or for
th e Federal Reserve B ank from w hich it
received such paym ent, th en th e n ext
succeeding business day for both sh all be
deem ed to be th e paym ent date.
(f) “R ecipient” m eans a person en
titled to receive recurring paym ents from
th e Government.
(g ) “Beneficiary” m eans a person
oth er th an a recipient w ho is entitled to
receive th e benefit o f all or part of a re
curring paym ent from th e Government.
(h) "Recurring paym ent” m eans any
Federal Governm ent benefit, annuity, or
other paym ent (or allotm ent th erefrom ),
including any paym ent of salary, wages,
or pay and allowances, w hich is m ade a t
regular intervals.
(i) “Program agency” m eans any
agency w hich makes recurring paym ents,
and includes any departm ent, agency,
Independent establishm ent, board, office,
com m ission or other establishm ent in th e
executive, legislative, or judicial branch
o f th e Governm ent, any w holly-ow ned or
controlled Governm ent corporation, and
th e m unicipal governm ent of th e D istrict
o f Columbia.
(j) "Standard A uthorization Farm ”
m eans th e authorization form prescribed
by th e D epartm ent of th e Treasury for
th e recurring paym ent for execution by
(1) a recipient, and (2) a financial or
ganization m aintaining an account for
such recipient.
§ 210.3
Federal Reserve Banks.
(a) Each Federal Reserve Bank as
F iscal A gent of th e U nited S tates shall
receive credit paym ents from th e Gov
ernm ent and sh all m ake available and
pay such credit paym ents to financial or
ganizations, and sh all otherw ise carry
ou t th e procedures and conduct th e op
erations contem plated under th is Part.
E ach Federal Reserve B ank m ay Issue
operating circulars (som etim es referred
to as operating letters or bulletins) n ot
incon sisten t w ith th is Part, governing th e
details of its credit paym ent handling
operating and containing such provi
sions as are required and perm itted by
th is Part.
(b) T he G overnm ent by its action of
Issuing and sending any credit paym ent
contained in th e m edia specified in
g 210.2(d) hereof shall be deemed to au
thorize th e Federal Reserve Banks (1) to
pay such credit paym ent to th e debit of
th e general account of th e U nited S tates
Treasury on th e paym ent date, and (2)
to handle and act upon such credit
paym ent.
(c) Upon receipt o f a credit paym ent,
a Federal Reserve Bank shall, if the
credit paym ent is directed to a financial
organization w hich m aintains or utilizes
an account on th e books of another Fed
eral Reserve Bank, forward such credit
paym ent to such other Federal Reserve
Bank. The Federal Reserve Bank on
whose books th e financial organization
or its designated correspondent m ain
tain s an account sh all deliver or make
available such credit paym ent to such
financial organization n ot later th a n the
close o f business fo r such financial or
ganization on th e business day prior to
th e payment date on the medium m payment and be credited to one account
agreed to by such Federal Reserve Bank on the books of a financial organiza
and financial organization.
tion. Except a« authorized by law or
(d) A finanrtfti organization by Its ac other regulations, th e procedures set
tio n In m aintaining or utilizing an ac fo rth In this P a rt shall not be used for
count a t a Federal R eserve B ank sh all be effectuating an assignment of a recurring
deem ed to authorize th a t Federal R e payment.
serve Bank to credit th e am ount o f th e
(g) A recipient m ay be required by lo
credit p aym ent to th e account on Its
books of such fin an cial organization or
its designated correspondent m ain tain
in g a n account w ith th e Federal Reserve
Bank.
(e) A Federal R eserve B ank receiving
a credit paym ent from th e G overnm ent
sh all m ake th e am ount o f such credit
paym ent available for w ithdraw al from
th e account on its books, referred to in
9 210.3(d) above, a t th e opening of busi
ness on th e p aym ent date.
(f) Each Federal R eserve Bank sh all
be responsible only to th e D epartm ent of
th e Treasury and sh a ll n ot be liable to
any oth er party for any loss resulting
from such Federal Reserve Bank's actions
under th is Part.
§ 2 1 0 .4
R e cip ien ts.
ca l law or by financial organization pro
cedures to have th e execution o f a
Standard A uthorization Form notarized.
(h ) A change in th e title o f an account
on th e books o f a fin an cial organization
w hich (1) rem oves th e nam e o f th e recip
ient, (2) removes or adds th e nam e of a
beneficiary, or (3) alters th e in terest of
the. beneficiary in th e account sh a ll ter
m in ate any Standard A uthorization
Form in w hich th a t account is desig
nated, and shall require th e execution o f
a new Standard A uthorization Form be
fore further credit paym ents m ay be
credited to th a t account.
§ 210.5 P ro g ra m ag en cies.
T he program agency w ill m aintain th e
data necessary for authorization o f credit
paym ents and sh a ll m ake such data
available for th e Issuance of such credit
paym ents in sufficient tim e for th e Gov
ernm ent, In perform ing its disbursing
function, to carry ou t its responsibilities
under th is Part. Such data sh a ll be cer
tified by th e program agency’s certifying
officer in accordance w ith 31 U.S.C. 82c.
(a) In order for a recipient to receive
a recurring paym ent by m eans of direct
deposit o f th e am ounts of credit pay
m ents under th is Part, a t a financial or
ganization o f th e recipient’s choosing
and to an account th e title of w hich in
cludes th e recipient’s nam e, th e recipient
sh all execute th e applicable portion and § 2 1 0 .6 T h e G o v e rn m en t.
deliver to such fin an cial organization
(a) In perform ance of its disbursing
th e Standard A uthorization Form pre
scribed by th e D epartm ent o f th e T reas functions, th e G overnm ent w ill, in a c
ury for such recurring paym ents. A cordance w ith th e provisions o f th is Part,
recipient sh all be responsible for any in issue and direct credit paym ents to th e
accuracy In th e d ata entered by such Federal R eserve B ank on w hose books
recipient on such Standard A uthoriza th e fin an cial organization nam ed th ere
in m ain tain s or u tilizes an account in
tio n Form.
(b) In executing a Standard A uthori sufficient tim e for th e Federal Reserve
zation Form, a recipient (1) designates Bank to carry out Its responsibilities u n
th e fin an cial organization and th e a c der th is Part.
(b) Procedural Instructions for th e
count on th e books o f su ch fin an cial or
ganization to w hich th e am ounts of th e guidance o f th e G overnm ent and F ed
credit paym ents sh all be credited, (2) Is eral Reserve B anks In th e Im plem enta
deem ed to agree to th e provisions of th is tion of th ese regulations w ill be Issued
Part, and (3) authorizes th e program by th e D epartm ent o f th e Treasury.
agency to term inate any previously exe § 210.7 F in a n c ia l o rg a n iz atio n s.
cuted Standard A uthorization Form or
(a) A fin an cial organization’s execu
any other incon sisten t paym ent Instruc
tions applicable to th e relevant recurring tion o f a Standard A uthorization Form
sh all constitute Its agreem ent to th e
paym ent.
(c) A recipient sh all execu te a sep term s of Oils P art w ith respect to each
arate Standard A uthorization Form for credit paym ent received by it pursuant
each type of recurring paym ent m ade to such Standard A uthorization Form.
hereunder. If a recipient w ishes to direct R egardless o f w hether it h as executed
a Standard A uthorization Form, a fi
a recurring paym ent to a different a c n an cial organization’s acceptance and
count or fin an cial organization, th e re hand lin g o f a credit paym ent issued pur
cipient sh a ll execu te a new Standard su an t to th is P a rt sh a ll con stitu te Its
A uthorization Form.
agreem ent to th e provisions o f th is Part.
(d) A recipient m ay a t any tim e au
(b) A fin an cial organization in execu t
thorize th e program agency to term inate in g a Standard A uthorization Form sh all
a Standard A uthorization Form by n o be responsible for (1) th e com pleteness
tifying such program agency.
and accuracy o f th e data entered by it
(e) T h e death or legal Incapacity o f a In Its portion o f th e Standard A uthoriza
recipient or th e death of a beneficiary tion Form, and (2) verifying th a t the
sh all term inate a Standard A uthorization depositor account num ber entered by th e
Form issued w ith respect to a recurring recipient on th e Standard A uthorization
paym ent.
Form corresponds to an account bearing
(f ) A recipient of a recurring paym ent th e n am e o f th e recipient.
m ay request only th a t a cred it paym ent
(c) A financial organization wishing
be In th e fu ll am ount o f such recurring to term inate the agreement evidenced
by a Standard A uthorization Form sh a ll
do so by giving w ritten n o tice to th e
recipient. Such term ination sh a ll become
effective th irty days a fter th e financial
organization h as senlt such n o tice to the
recipient.
(d ) A finan cial organization receiving
a credit paym ent sh all credit th e am ount
o f such credit paym ent to th e designated
account o f th e recipient On its books, and
it sh a ll m ake such am ount availab le for
w ithdraw al or other use by th e recipient
n ot later th a n th e opening o f business
on th e paym ent date. If th e credit pay
m ents or an y related docum entation re
ceived by th e fin an cial organization from
a Federal R eserve Bank do n o t balance,
are Incom plete, are clearly erroneous on
th eir face, or are incapable of being
processed, th e fin an cial organization,
a fter assuring itself th a t n eith er it nor
an y o f its agen ts Is responsible, sh all im
m ediately n o tify such Federal R eserve
B ank in order th a t it m ay deliver cor
rected m aterial to such financial organi
zation.
(e) A fin an cial organization receiving
a credit paym ent shall credit th e am ount
of such credit paym ent to th e account
indicated by th e depositor accou n t num
ber inform ation specified In th e credit
paym ent. If th e fin an cial organization is
unable to cred it th e account indicated
in th e credit paym ent based upon th e
depositor account num ber inform ation
specified, and Is further unable to credit
th e accou n t designated by th e recipient
based upon other Inform ation contained
in th e cred it paym ent, It sh a ll prom ptly
return th e cred it paym ent to th e Federal
R eserve B ank w ith a statem en t id en ti
fy in g th e reason therefor.
(f) A financial organization shall
prom ptly return to th e G overnm ent
through th e Federal R eserve B ank an y
relevant credit paym ent received by such
fin an cial organization:
(1) A fter term in ation o f a Standard
A uthorization Form pursuant to $ 210.4
(h ) an d before th e execution o f a new
Standard A uthorization Form;
(2) A fter term in ation of a Standard
A uthorization Form pursuant to S 210.7
(c) h as becom e effective;
(3) A fter th e death or legal incapacity
o f th e recipient or death o f th e bene
ficiary; or
(4) A fter th e closing o f th e recipient’s
account.
(g) A financial organization to w hich
a credit paym ent is sen t under th is Part
does n ot thereby becom e a G overnm ent
depositary and sh all n o t advertise itself
as one because of th a t fact.
(h) Each financial organization by Its
action o f h andling a credit paym ent sh all
be deemed to w arrant to th e G overnm ent
th a t it has handled such credit paym ent
In accordance w ith th is Part. In addition
to th e liab ility w hich m ay be Imposed
pursuant to S'SIO.D, If th e foregoing war
ranty is breached, th e financial organi
zation sh a ll indem nify th e G overnm ent
fo r any loss sustained by th e Govern
m ent, b u t only to th e exten t th a t such
loss w as th e resu lt o f su ch breach. E xcept
a s provided in th is section, and S 210.9, a
flnanp-tai organisation shall n ot be liable
under tide F a rt to any party tor Its
handling rff a credit payment.
S 210.8
Timeliness o f action.
If, becaue of circum stances beyond its
control, th e G overnm ent, a Federal R e
serve Bank, or a fin an cial organization
shall be delayed beyond th e applicable
tim e lim its (including th e paym ent date)
provided by th is Part, th e operating circuliars of th e Federal Reserve Banks, or
applicable law in tak in g an y action w ith
respect to a cred it paym ent, th e tim e
w ith in w hich su ch action sh all be com
p leted sh all b e extended for su ch tim e
a fter th e cause o f th e delay ceases to
operate as sh a ll be necessary to tak e or
com plete th e action, p rovided th e G ov
ernm ent, th e Federal Reserve Bank, or
th e fin an cial organization exercises such
d iligence as th e circum stances require.
8 210.9 Death or legal incapacity of re
cipients o r death of beneficiaries.
(a ) W hen, because o f th e death or
leg a l in cap acity of a recipient or th e
d ea th o f a beneficiary, one or m ore credit
p aym ents should have been returned to
th e G overnm ent, a fin an cial organiza
tio n sh a ll be accountable to th e Govern
m en t fo r th e to ta l am ount of any such
cred it paym ents: P rovided, how ever,
T h a t if:
(1) S u ch am ount, or any p art thereof,
is n o t available in th e recipient’s ac
cou n t; and
(2) T h e fin an cial organization did n o t
have, a t th e tim e of th e deposit and
w ithdraw al, knowledge o f th e recipient’s
d eath or lega l Incapacity, or th e bene
ficiary’s d eath, and
(3) T h e fin an cial organization h as
m ade every practicable adm inistrative
effort to recover th e am ount w hich is not
available in th e recipient’s account;
th e fin an cial organization sh a ll be ac
countable only for:
(I) T he am ount available in th e re
cip ien t’s accou n t and th e am ount re
covered by it, plus
(II) T he am ount n o t recovered by it, or
an am ount equal to th e credit paym ents
received by it w ith in 45 days a fter th e
d eath or lega l incapacity o f th e recipient
or th e d eath o f th e beneficiary, w hichever
is th e lesser am ount.
(b) A fin an cial organization sh a ll be
deem ed to have knowledge of th e death
or leg a l incapacity o f a recipient or th e
death o f a beneficiary w hen such in for
m ation is brought to th e a tten tio n o f an
individual in th e fin an cial organization
w ho h andles credit paym ents, or w hen
such inform ation w ould h a ve been
brought to such individual’s a tten tion 4f
th e fin an cial organization h ad exercised
due diligence. T he •
nci«o organization
w ill be considered to have exercised due
diligence on ly if it m aintains procedures
for im m ediately com m unicating such in
form ation to th e appropriate individuals,
and com plies w ith such procedures.
§ 210.10 Liability of, and acquittance to,
th e United States.
proper amount of a recurring payment to
the appropriate account of the recipient
as required by this Part. Such liability
shall be limited to the amount of such
recurring payment.
(b) T he U nited S ta tes sh a ll be liab le
to th e fin ancial organization, up to th e
am ount o f th e cred it paym ent, for a loss
sustained by th e fin an cial organisation
as a result of its crediting th e am ount of
th e credit paym ent to th e accou n t speci
fied in th e credit paym ent, if th e fin a n
cia l organization h as h andled su ch credit
paym ent in accordance w ith th is P art.
T h e foregoing does n o t exten d to credit
paym ents received by th e fin an cial or
gan ization after th e d eath or lega l in
cap acity o f th e recipient or death o f the
beneficiary, in w hich even t S 210.9 sh all
govern.
(c) T he crediting o f th e am ount of a
credit p aym ent to th e appropriate ac
cou n t of a recipient on th e books of th e
appropriate fin an cial organization sh a ll
con stitu te a fu ll acquittance to th e
U nited S tates for th e am ount o f such
paym ent.
I nflation I mpact Certification
P ursuant to th e provisions o f OMB
Circular No. A -107, dated January 28,
1975, it is hereby certified th a t upon due
consideration and application o f th e
T reasury Identification C riteria1 th e
proposed regulation en titled “Federal
R ecurring P aym ents T hrough F inancial
O rganizations B y M eans O ther T h an B y
C heck”, h as n ot been determ ined-to be a
m ajor proposal requiring an evaluation
o f Its inflationary im p act and th a t such
a n evaluation h a s n o t b een perform ed.
D ated: October 3,1975.
[seal]
D a v i d M osso,
Fiscal A ssista n t S ecretary.
[FR Doc.75-27153 Filed 10-8-76:8:45 am]
1As contained in the "Proposed Treasury
(a)
The United States shall be liableIdentification Criteria: Inflation Impact
to a recipient for the failure to credit the Statements, Revision of 8/15/75."
@FedFRASER