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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’ to contact annually your customers who have given
s,
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.r
r
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

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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.

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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
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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 .
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D a te d :

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A pril 22, 1970

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GP 0

89 2-

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