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federal R e s e r v e b a n k o f Da l l a s F I S C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEXAS 7 5 2 2 2 Circular No. 67-240 November 29, 19^7 REVISED TREASURY DEPARTMENT CIRCULAR NO. 92 To All Banks and Others Concerned in the Eleventh Federal Reserve District: Enclosed is a revised copy of United States Treasury De partment Circular No. 92, containing the regulations governing Special Depositaries of Public Money and their authorization to maintain Treasury Tax and Loan Accounts. The circular will become effective December 1, 1967* Additional copies will be furnished upon request. Yours very truly, Watrous H. Irons President Enclosure This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) UNITED STATES TREASURY DEPARTMENT REGULATIONS G O V E R N IN G Special Depositaries of Public Money and Their A uthorization to M aintain Treasury Tax and Loan Accounts Department Circular No. 92 Revised October 9, 1967 TITLE 31—MONEY AND FINANCE: TREASURY CHAPTER II—FISCAL SERVICE, DEPARTMENT OF THE TREASURY SUBCHAPTER A—BUREAU OF ACCOUNTS Part 203—Special Depositaries of Public Money [D epartm ent Circular No. 92 (Second R e v isio n )] P art 203, Subchapter A, Chapter II o f T itle 31 of th e Code o f Federal R egulations [also appearing as T reasury D epartm ent Circular No. 92 (R e v ised ), dated Novem ber 10, 1949, as amended] is hereby revised effective Decem ber 1 ,1 9 6 7 , to read as fo llo w s : Section 203.1 203.2 203.3 203.4 203.5 203.6 203.7 203.8 203.9 Scope o f regulations. Designation. T reasury T ax and Loan Accounts. Contract o f deposit. P reviously qualified special depositaries. D iscontinuance o f special depositaries. Deposits. Collateral security. W ithdrawal of deposits. A u t h o r i ty : The provisions o f th is P art 203 issued under section 8, 40 Stat. 291, as am ended; 31 U.S.C. 771; and section 6 3 0 2 (c ), Internal R evenue Code o f 1954, unless otherw ise noted. S o u rce : The provisions of this P a rt 203 appear at 32 F.R. 14216. § 203.1 Scope of regulations The regulations in this part govern the designation o f Special D epositaries o f Public Money (h ereinafter referred to as special d ep o sita ries), and th eir authorization to m aintain Treasury Tax and Loan A ccounts in which they m ay credit funds representing paym ents for certain U nited States obligations and o f internal revenue taxes. The designation o f Depositaries and Financial A gents of the Governm ent and their authorization to accept deposits o f public m oney and to perform other services are governed by the regulations in P art 202 o f this chapter. 3 § 203.2 Designation E very incorporated bank and trust company in the U nited States, Puerto Rico, the V irgin Islands, and the P anam a Canal Zone, and every U nited States branch of a foreign banking corporation authorized by the State in which it is located to transact commercial banking business, is hereby designated as a special depositary. § 203.3 Treasury Tax and Loan Accounts (a ) A u th o r iz a tio n . E v ery special depositary is authorized, upon approval by the Federal R eserve Bank o f its district, to m aintain fo r th at Federal R eserve Bank, as Fiscal A gent o f the U nited States, a separate account, for deposits to be made under this part, to be known as the T reasury Tax and Loan Account. ( b ) Q ualification. To obtain approval for a Treasury T ax and Loan Account a special depositary m ust (1) file w ith the Federal Reserve Bank o f its d istrict an application ac companied by a resolution of its board o f directors authorizing the application (both on form s prescribed by and available from the Federal Reserve B a n k ), and (2 ) pledge col lateral security as provided fo r in section 203.8. (c) M a x im u m balance. The balance in a T reasury Tax and Loan Account w ith a special depositary m ay not exceed an am ount determined by the Federal R eserve Bank of its district. ( d ) P a r tic u la r locations. F or the purposes o f this part, special depositaries located in Puerto Rico, the V irgin Islands, and the P anam a Canal Zone w ill be considered as being located in the N ew York Federal Reserve district. § 203.4 Contract of deposit A special depositary w hich accepts a deposit under this part enters into a contract of deposit w ith the T reasury D epartm ent. The term s of the contract include all the provisions o f this part and the provisions prescribed in section 202 o f E xecu tive Order 11246, entitled “Equal E m ploym ent O pportunity” (30 F.R. 1 2319). § 203.5 Previously qualified special depositaries A special depositary previously qualified will, by the acceptance or retention of de posits, be presumed to have assented to all the term s and provisions o f this part and to the retention o f collateral security theretofore pledged. § 203.6 Discontinuance of special depositaries The au thority to m aintain a T reasury T ax and Loan A ccount o f a special depositary w hich has received an allotm ent on a subscription for obligations of the U nited States and refuses to accept the allotm ent and to make paym ent, or otherw ise fails to comply w ith the provisions o f th is part, w ill be discontinued. § 203.7 Deposits (a ) S o u rces. A special depositary m ay credit in its T reasury T ax and Loan Account funds re p r esen tin g : (1) paym ents for U nited States Savings Bonds and U nited States S avin gs N otes issued by the special d ep o sita ry ; 4 * (2 ) paym ents fo r U nited States Savings Bonds and United States Savings N otes w hich are applied for through the special depositary on behalf of its custom ers but which m ay be issued only by Federal R eserve Banks and the Treasurer o f the United S ta te s ; (3) paym ents made by or through the special depositary for allotm ents on sub scriptions for other obligations o f the U nited States issued under authority o f the Second Liberty Bond Act, as amended, w hen this method of paym ent is perm itted under the term s of the offering circu la rs; (4 ) paym ents o f such internal revenue taxes as the Secretary o f the Treasury m ay from tim e to tim e authorize to be paid through T reasury T ax and Loan Accounts. (b) P ro ced u res. In order to make paym ent by credit to its T reasury Tax and Loan Account, a special depositary m u s t: (1 ) in the case of paym ents described in paragraphs (a) (1 ) , (2 ) and ( 3 ) , com ply w ith term s and conditions prescribed by the Federal R eserve Bank of its d is tr ic t; (2 ) in the case o f paym ents described in paragraph (a ) ( 4 ) , comply w ith such requirem ents as the Secretary o f the T reasury m ay prescribe. § 203.8 Collateral security (a) R e q u ir e m e n t. Prior to crediting deposits to its T reasury T ax and Loan Account, a special depositary m ust pledge collateral security in an amount, taken at the values pro vided in paragraph ( b ) , at least equal to the portion of the balance in the account th at w ill be in excess o f the insurance coverage provided by the Federal D eposit Insurance Corporation. ( b ) A cc ep ta b le secu rities. U nless otherw ise specified by the Secretary of the Treasury collateral security pledged under this section m ay be transferable securities of any o f the follow in g c la s s e s : (1 ) O bligations issued or fully insured or guaranteed by the U nited States or any U nited States G overnment a g e n c y : at face value. (2 ) O bligations issued or fu lly guaranteed by the International Bank for Re construction and D evelopm ent or the Inter-A m erican Developm ent B a n k : at face value. (3 ) Obligations partially insured or guaranteed by any U nited States Govern m ent a g e n c y : at a value equal to the am ount of the insurance or guaranty. (4 ) N otes representing loans to students in colleges or vocational schools which are insured either by Federal insurance or by a State agency or p rivate nonprofit in stitu tion or organization adm inistering a student loan insurance program in accordance w ith a form al agreem ent w ith the Comm issioner o f Education under the provisions o f the H igher Education A ct o f 1965 or the N ational V ocational Student Loan In surance A ct o f 1965: at face value. (5 ) O bligations issued by States o f the U nited S ta te s : at 90 percent o f face value. (6 ) O bligations o f Puerto R ic o : at 90 percent of face value. (7 ) Obligations o f counties, cities, and other governm ental authorities and in strum entalities w hich are not in default as to paym ents on principal or interest: at 80 percent of fa ce value. (8 ) Obligations o f dom estic corporations w hich m ay be purchased by banks as investm ent securities under the requirem ents of Federal bank regulatory a g e n c ie s : at 80 percent o f fa ce value. 5 (9 ) Commercial and agricultural paper and bankers’ acceptances approved by the Federal R eserve Bank o f the d istrict and h aving a m aturity at the tim e of pledge o f not to exceed 6 m o n th s: at 80 percent o f face value. (c) D e p o sit o f secu rities. Collateral security under this part m ust be deposited w ith the Federal Reserve Bank or Branch of the district in w hich the special depositary is located, or w ith a custodian or custodians w ith in the U nited States designated by the Federal Re serve Bank, under term s and conditions prescribed by the Federal R eserve Bank. ( d ) A s s ig n m e n t o f secu rities. A special depositary that pledges securities w hich are not negotiable w ith ou t its endorsem ent or assignm ent may, in lieu of placing its unqualified endorsem ent on each security, furn ish an appropriate resolution and irrevocable power o f attorney authorizing the Federal Reserve Bank to assign the securities. The resolution and power o f attorney shall conform to such term s and conditions as the Federal R eserve Bank shall prescribe. § 203.9 Withdrawal of deposits All deposits w ill be payable on demand w ithout previous notice. Calls fo r w ithdraw als o f deposits w ith special depositaries w ill be made by direction of the Secretary of the T reasury through the Federal Reserve Banks, and depositaries w ill be required to arrange for paym ents o f the calls in funds th at w ill be im m ediately available on the paym ent date. Jo h n K. Carlock , F isca l A s s is ta n t S e c re ta ry . 6 U.S. GOVERNMENT PRINTING OFFICE : 1 9 6 7 -0 -2 7 9 -9 8 1