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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
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