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F ederal R eserve Ba n k o f Dallas DALLAS, TEXAS 75222 C irc u la r No. 75-83 June 18, 1975 SPECIAL $50 PAYMENTS TO SOCIAL SECURITY AND RAILROAD RETIREMENT BENEFICIARIES TO ALL BANKS IN THE ELEVENTH FEDERAL RESERVE D ISTR IC T: Enclosed for you r information is a notice provided by the T re a s u ry Department reg ard in g the special $50 payments to Social S ecurity and Railroad Retirem ent ben eficiaries. This no tice outlines the procedure to be observed on endorsement of T re a s u ry checks for the special one-tim e $50 payment re fe rre d to above w here the payee dies after March 31, 1975 and before the recepit or negotiation of the c h e c k . Questions reg ard in g this notice should be directed to T . E. S p reng, Assistant Vice President, or the app ro priate Branch officer having respo nsibility over the Government Checks Function. Sincerely y o u rs , T . W. Plant First Vice President Enclosure This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) DEPARTMENT OF THE TREASURY FISCAL SERVICE Bureau of Government Financial Operations SPECIAL $50 PAYMENTS TO SOCIAL SECURITY AND RAIL ROAD RETIREMENT BENEFICIARIES Deceased Payees Notice of Procedures to be Observed on Indorsement of Treasury Checks 1. Background. Section 702 of the Tax Reduction Act of 1975, Public Law 94-12, approved March 29, 1975, provides for special one-time $50 payments by the Treasury Department to persons en titled to social security, supplemental security income, and railroad retirement benefits for the month of March 1975. The intent of the Congress was to provide to the persons entitled to the benefits described above, a payment comparable in nature to the tax rebates authorized under title I of the Act. 2. Purpose and Scope. Under the Act, entitlement accrues to all individuals who were entitled to a regular payment under any of the above programs for the month of March 1975, so long as the payment check for that month is issued no later than August 31, 1975. These checks will contain a legend "P. L. 94-12 Payment" and will be payable in the amount of $50 or multiples thereof. 3. Limitation. The provisions of this notice are limited to the negotiation of Treasury checks issued for the special one time $50 payment referred to above, where the payee dies after - 2 - March 31? 1975 and before the receipt or negotiation of the check. 4. Manner of indorsement. Treasury checks hereinbefore de scribed may be negotiated and will be paid by the Treasury when indorsed in the manner indicated: (a) Executors and administrators. Executors and adminis trators may negotiate the checks in accordance with pro visions of section 240.10(a) of Treasury Department Cir cular No. 21, as amended, 31 CFR 240.10(a). (b ) Surviving spouse and next of k i n . If no executor or administrator is to be appointed, the Treasury Department will pay a check bearing (l) an indorsement, on behalf of the estate of the payee, by the surviving spouse residing with the deceased payee at the time of death, or (2) if no such spouse survives, an indorsement in a similar repre sentative capacity by the next of kin. The next of kin shall be one of the following relatives of the deceased payee in the order named: (l) children, (2) parents, (3) brothers or sisters. In either event the indorsement shall be sub stantially as follows: For the Estate of the within named payee By_______ j ________________ __________________________ Surviving Spouse Residing with Deceased Payee at Time of Death or For the Estate of the within named payee By______________________________________ ____________ Next of kin - 3 (c ) Checks drawn payable .jointly to two 'persons of the same family, A check drawn to two persons of the same family, where one of the payees dies before receipt or negotiation of the check, may be indorsed and negotiated by the survi vor for self and for the deceased payee. Any appropriate form of indorsement will suffice, such as: John Doe, and John Doe, for the deceased Mary Doe ( d ) Checks drawn to the order of representative payees. A check drawn to a representative payee for another, which has not been negotiated before the death of the representa tive payee, shall be returned to the issuing disbursing center for cancellation and reissuance to another represen tative payee. 5. Caution. Cashing indorsers are cautioned that they are protected only if the facts of each case support the indorse ment on the checks. If such a cashing indorser is doubtful about the validity of the indorsement, he should require documentation in support of the death of the payee and in support of the status of the person signing in a representa tive capacity for the estate of the decedent. Except as specifically provided herein, 31 CFR Part 240 (Treasury Department Circular 21) shall govern the negotiation and payment of these checks. - 4 5 U.S.C. 301; Sec. 702; P.L. 94-12, 89 Stat. 66. ^ John r Ccrlock John K. Carlock Fiscal Assistant Secretary Date: MflV j ;975
