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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States f Circular No. 3 5 1 8 I L December 2, 1949 J REVISED SYSTEM FOR PAYMENT OF FEDERAL TAXES THROUGH DEPOSITARY BANKS AND FEDERAL RESERVE BANKS (Applicable to Wages Paid on or after January 1, 1950) To all Banks and Trust Companies in the Second Federal Reserve District: The Treasury Department lias revised the system whereby banking institutions may accept from employers deposits o f taxes withheld at the source on wages, and has extended sucli system to include deposits o f employment (social security) taxes levied under the Federal Insurance Contributions Act. A ll such taxes are hereafter referred to as “ Federal taxes” . Banking institutions desiring to accept such deposits must qualify as Depositaries for Federal Taxes under Treasury Department Circular No. 848. The new system will be effective with respect to deposits o f Federal taxes relating to wages paid on or after January 1, 1950, and will also permit employers to deposit such Federal taxes directly with Federal Reserve Banks as well as with banking institutions which qualify as Depositaries for Federal Taxes. Under the new system, banking institutions will not receive reimbursement from the Treasury Depart ment fo r any services rendered in handling deposits o f Federal taxes. However, each bank desiring to do so will receive benefits through the holding of Government deposits in its W ar Loan Deposit Account, the name o f which will be changed to “ Treasury Tax and Loan A ccou nt” , as provided in Treasury Department Circular No. 92 (Revised), dated November 10, 1949. Deposits made on or before January 31,1950, representing income tax withheld from wages paid prior to January 1, 1950, shall be handled by Depositaries fo r Withheld Taxes under the present system. The following Treasury Department circulars and forms with respect to this new plan are enclosed herewith: (1) Treasury Department Circular No. 848, containing regulations governing deposits of Federal taxes with Federal Reserve Banks and depositary banks. (2) Treasury Department Circular No. 92 (Revised), dated November 10, 1949, containing regu lations governing special deposits of public moneys. (3) Treasury Department Circular No. 660—First Amendment to First Supplement, providing for redemption of 2 Percent Depositary Bonds. (4) Treasury Department Circular No. 714—Fifth Amendment, providing for the discontinu ance of Depositaries for Withheld Taxes. (5) Two copies of Treasury Department Form No. 460, entitled “ Resolution Authorizing Execu tion of Application-Agreement, Depositary for Federal Taxes” . t (6) Two copies of Treasury Department Form No. 469, entitled “ Application-Agreement, Deposi tary for Federal Taxes” . Treasury Department Circular No. 848 Procedure for qualification of designated banks as Depositaries for Federal Taxes 1. Each banking institution in this district, regardless of whether it has previously quali fied as a Depositary fo r Withheld Taxes under Treasury Department Circular No. 714, must he qualified as a Depositary for Federal Taxes by the Federal Reserve Bank o f New York before such banking institution may accept deposits of Federal taxes from employers with respect to wages paid on or after January 1, 1950. Application for such qualification should be made by submitting to the Federal Reserve Bank of New York, Federal Reserve P. 0 . Station, New Y ork 45, N. Y., one duly executed copy o f the “ Application-Agreement, Depositary fo r Federal T axes” (F orm No. 469) together with one duly certified copy of “ Resolution Authorizing Execution of Application-Agreement, D epositary for Federal T axes” (Form No. 460). The second copy o f each o f these form s may be retained by the applying institution for its files. W ritten notice of qualification will be given to the depositary when its application is approved. 2. The general procedure to be followed by Depositaries for Federal Taxes, as set forth in Treasury Department Circular No. 848, is summarized below, and detailed procedural instruc tions will be furnished to each such depositary. General procedure for handling of deposits of Federal taxes by Depositaries for Federal Taxes 3. Depositaries for Federal Taxes shall accept from employers remittances in the form o f check, postal money-order, etc., covering the amount o f Federal taxes, but only when accom panied by a Federal D epositary R eceipt, Treasury Department Form No. 450 (see Exhibit B to Treasury Department Circular No. 848), on which form the em ployer has inscribed, by ink or typew riter, his name, address, em ployer’s identification number, amount of income tax with held, amount o f employment (social security) taxes, and total amount of such taxes. Deposi taries may not accept from employers any other form of receipt to accompany their remit tance. Collectors o f Internal Revenue will furnish each employer with a Federal Depositary Receipt, Form No. 450, inscribed with his name and address, fo r the em ployer’s use in making his initial deposit o f taxes under the new system. This is the only such receipt form which will be furnished employers by Collectors o f Internal Revenue. Thereafter, the Federal Reserve Bank, when returning to the employer the validated receipt evidencing the deposit, will enclose a blank receipt (F orm No. 450) fo r the em ployer’s use in making his next deposit. I f fo r any reason an employer in this district needs additional supplies o f Form No. 450, he should request them from the head office of the Federal Reserve Bank o f New York, stating the em ployer’ s identification number and the name and address o f the bank upon which he normally draws his checks. Supplies o f Form No. 450 will not be furnished to depositary banks for distribution to employers. 4. Depositaries will not be required to accept from employers funds which are not immediately available to depositaries at the time o f deposit. 5. Depositaries may issue a memorandum or counter receipt, if requested to do so by employers, evidencing receipt o f the em ployer’s deposit by the depositary. Exhibit C to Treasury Department Circular No. 848 contains a specimen form o f memorandum receipt which might be suitable for this purpose, but neither the Treasury nor the Federal Reserve Bank of New York will furnish a supply of such forms. 6. Depositaries must indicate on the reverse side o f each Federal Depositary Receipt (F orm No. 450) the name o f the depositary and the date on which the deposit was received from the employer. Depositaries should also verify each Depositary Receipt to determine that the sum o f the two classes o f taxes (withheld taxes and social security taxes) inscribed on the receipt is correct and agrees with the total amount of the tax deposited. 7. Depositaries must forward, at the close o f business each day, to the Federal Reserve Bank o f their district all Federal Depositary Receipts (Form No. 450) received that day together with payment in funds immediately available to such Federal Reserve Bank or appro priate advice that funds have been credited in the Treasury Tax and Loan Account of the depositary, covering the aggregate amount o f all Federal tax deposits received during that day. Depositaries will be permitted to hold funds so credited to their Treasury Tax and Loan Accounts (form erly W ar Loan Deposit Accounts) in such accounts until called fo r by the Treasury. 8. Depositaries will be expected to maintain adequate records of deposits received from employers so that the depositary will be able to identify such deposits in the event Depositary Receipts (F orm No. 450) should be lost in shipment. F or this purpose it will only be necessary to maintain a record, fo r each receipt, o f the date o f payment, the em ployer’ s identification number, and the total amount o f taxes covered by such receipt. 9. Each Federal Depositary Receipt (F orm No. 450) will be validated by the Federal Reserve Bank and returned directly to the employer together with a blank receipt form for use o f the employer in making his next deposit. Treasury Department Circular No. 92 (Revised), dated November 10, 1949 10. This circular governs deposits o f public moneys with banks and trust companies quali fied as “ Special Depositaries o f Public M oneys” . The principal changes effected by the revi sion, which is effective January 1, 1950, are that the name of the W ar Loan Deposit Account is changed to Treasury Tax and Loan Account and that a procedure is set up whereby a Special D epositary may, if it washes, have deposited in its Treasury Tax and Loan Account amounts equivalent to the total amount o f checks drawn on such Special Depositary and received by the Federal Reserve Bank directly from em ployers as remittances fo r Federal taxes. The Federal Reserve Bank which receives such deposits will send the Special Depositary a special form o f draft together with appropriate instructions to be followed by the depositary if it wishes to deposit the proceeds thereof in its Treasury Tax and Loan Account. The general terms and conditions governing the use o f such special drafts are set forth in Sections 17 through 22 o f Treasury Department Circular No. 92 (R evised). 11. Notwithstanding the change in name o f W ar Loan Deposit Account to Treasury Tax and Loan Account, effective January 1, 1950, existing form s containing the name W ar Loan Deposit Account may be used where otherwise appropriate until supplies have been exhausted, except that Federal Reserve Bank o f New Y ork Form No. 15.1 “ Remittance fo r Withheld T axes” may be used only when remitting fo r taxes withheld from wages paid prior to January 1, 1950. Treasury Department Circular No. 660, First Amendment to First Supplement 12. This circular provides fo r the redemption of 2 Percent Depositary Bonds, Second Series, as of the close o f business February 28, 1950. These bonds will earn interest for the months o f January and February, 1950. Treasury Department Circular No. 714, Fifth Amendment 13. This amendment provides for the termination o f the qualifications of Depositaries for Withheld Taxes. It should be noted that such depositaries may receive deposits from employers throughout January 1950, provided such deposits represent income taxes withheld from wages paid prior to January 1, 1950. The old D epositary Receipt system should be used in connec tion with such deposits. Federal Reserve Bank of New York Operating Circular No. 18 14. Our Operating Circular No. 18 dated December 8, 1947, as amended, entitled “ P ay ment Through Depositary Banks o f Funds W ithheld as T axes” , will become ineffective on January 1, 1950, except as applied to deposits made during January 1950, with Depositaries fo r Withheld Taxes representing income taxes withheld from wages paid prior to Janu ary 1,1950. Further information and additional copies o f this circular and of the enclosures will be furnished upon request. A llan S proul, President. REGULATIONS GOVERNING THE DEPOSIT WITH FEDERAL RESERVE BANKS AND DEPOSITARY BANKS OF EMPLOYER AND EMPLOYEE TAXES UNDER THE FEDERAL INSURANCE CONTRIBUTIONS ACT AND OF INCOME TAX WITHHELD ON WAGES UNDER SECTION 1622 OF THE INTERNAL REVENUE CODE (Applicable to Wages Paid on or after January 1, 1950) 1949 D e p a r t m e n t C ir c u l a r T reasury D e p a r tm en t, No. 848 O f f ic e of t h e Secretary, Washington, November 1 0,19U9. Fiscal Service Bureau of Accounts To Federal Reserve Banks, incorporated banks and ti'ust companies, and others concerned: 1. Scope of Regulations Pursuant to authority contained in Section 3310 (f) (2) of the Internal Revenue Code, as added by Section 7 of Public Law 271 (81st Congress), approved August 27,1949; Section 15 of the Federal Reserve Act, as amended (U. S. C. title 12, sec. 391) ; Section 10 of the Act of June 11,1942 (U. S. C. title 12, sec. 265) ; and Section 8 of the Second Liberty Bond Act, as amended (U. S. C. title 31, sec. 771), the following regulations are hereby prescribed, governing the handling and processing o f deposits made by employers with Federal Reserve Banks and depositary banks, of income taxes withheld under Section 1622 of the Internal Revenue Code (Subchapter D of Chapter 9 of the Internal Revenue Code), and employment taxes under the Federal Insurance Contributions Act, as amended (Subchapter A of Chapter 9 of the Internal Revenue Code). 2. Definition of Terms When used in this circular, the terms listed below shall have the following meaning, unless otherwise expressly stated: (a) “ Federal taxes” shall mean (1) income taxes withheld by employers pursuant to Section 1622 of the Internal Revenue Code, and (2) employees’ taxes withheld under Section 1401 of such Code and employers’ tax under Section 1410 of such Code; all with respect to wages paid on or after January 1, 1950; (b) “ Federal Reserve Banks” shall mean the several Federal Reserve Banks as fiscal agents o f the United States; ( c ) “ Depositary for Federal Taxes” shall mean a designated bank or trust company that has quali fied, in accordance with the provisions of this circular, to receive from employers deposits of Federal taxes, as defined above, and unless otherwise expressly stated the word “ depositary” shall refer to a “ Depositary for Federal Taxes.” 3. Authorization of Federal Reserve Banks Pursuant to the authority contained in Section 3310 (f) (2) of the Internal Revenue Code and the Federal Reserve Act, as amended, the several Federal Reserve Banks, in their capacity as fiscal agents of the United States, are hereby authorized and directed, subject to the provisions of this circular, to receive from employers or other persons, hereinafter referred to as employers, deposits of Federal taxes and to perform such other functions as may be prescribed by the Secre tary of the Treasury in connection with the handling and processing of such tax deposits. The functions to be performed by Federal Reserve Banks are outlined hereinafter, and will be described in detail, together with the detailed procedure to be followed in performing the required functions, in instructions to the Federal Reserve Banks. 16-60166-1 (1) 4. Designation of Banks Which May Be Qualified to A ct as Depositaries for Federal Taxes Pursuant to the authority contained in Section 3310 (f) (2) of the Internal Revenue Code, all insured incorporated banks, within the meaning of Section 10 of the Act of June 11, 1942, and all uninsured incorporated banks and trust companies designated as “ Special Depositaries of Pub lic Moneys” under the provisions of the Act of Congress approved September 24,1917, as amended, are hereby designated, subject to the provisions of this circular, as depositaries and financial agents of the Government for receiving from employers deposits of Federal taxes; Provided, That no such bank or trust company shall perform any of the acts covered by this designation until it has quali fied, in the manner herein prescribed, to so act. Banks and trust companies that qualify for the purpose of receiving deposits of Federal taxes from employers will be known as “ Depositaries for Federal Taxes.” Banking institutions which have heretofore been designated as depositaries for withheld in come taxes, in accordance with the provisions of Department Circular No. 714, as amended, or as depositaries and financial agents of the Government for the performance of certain classes of fiscal duties, will be required to qualify under the terms of this circular in order to act as depositaries for Federal taxes with respect to deposits by employers of Federal taxes applicable to wages paid on or after January 1, 1950. Incorporated banks or trust companies located in the territories and insular possessions of the United States, which are not insured banks within the meaning of Section 10 of the Act of June 11, 1942, but which are otherwise eligible for designation as depositaries or financial agents of the United States, may be specifically designated by the Secretary of the Treasury under the Act of June 19, 1922 (U. S. C. title 31, sec. 473), governing depositaries outside of the continental United States, to act as depositaries for Federal taxes, upon qualification substantially in accordance with the provisions of Section 5 hereof. Banks and trust companies located in the Territories of Alaska and Hawaii should transmit applications for such designation to the Federal Reserve Bank of San Francisco, and banks and trust companies located in Puerto Rico, the Virgin Islands and the Panama Canal Zone should transmit applications for such designation to the Federal Reserve Bank of New York. 5. Qualification of Designated Banks as Depositaries for Federal Taxes Any designated bank or trust company which desires to qualify, under the terms of this cir cular, for receiving from employers deposits of Federal taxes without compensation for its services, should apply for qualification through the Federal Reserve Bank of the district in which it is located. Such application shall be made on Application-Agreement, Depositary for Federal Taxes (Form No. 469), shown as Exhibit A of this circular. Copies of this form and instructions regardingthe application may be obtained from the Federal Reserve Bank. No designated bank, which has made application for qualification, shall act as a Depositary for Federal taxes under the terms of this circular until it receives from the Federal Reserve Bank notice of approval of the application. Upon receipt of such notice, each designated bank is hereby authorized to receive deposits of Federal taxes from employers. 6. Procedure to be Followed by Depositaries for Federal Taxes There are outlined below the basic requirements of the procedure that will be observed by Depositaries for Federal Taxes, qualified pursuant to this circular, with respect to deposits of taxes applicable to wages paid on or after January 1, 1950. More detailed instructions will be furnished depositaries for Federal taxes, through the Federal Reserve Banks. (A ) Depositaries shall accept from employers, who desire to make deposits with such depositaries, remittances in the form of check, postal money order, etc., covering the amount of Federal taxes, accompanied by a “ Federal Depositary Receipt” (Form No. 450) on which the em ployer has inscribed, in ink or typewriter, his name, address, employer’s identification num- 16— 60 166-1 2 ber, amount of income tax withheld, amount of F. I. C. A. (employment) taxes, and total amount o f taxes. Depositaries will not be required to accept from employers funds which are not immediately available to the depositary at the time of deposit, and Treasury Savings Notes, or other public debt securities of the United States, shall not be accepted as deposits of Fed eral taxes under this circular. Depositaries shall not accept from employers any form of receipt accompanying their remittances other than the prescribed receipt, Form 450, shown as Exhibit B of this circular. (B ) If requested to do so by employers, depositaries will issue a memorandum or counter receipt to employers evidencing receipt of funds by the depositary. It is important that memo randum receipts issued by depositaries clearly state that employers must not attach such memorandum receipts to their tax returns as evidence of deposit of taxes, since only official receipts on Form No. 450, which have been validated by a Federal Reserve Bank, will be ac cepted by collectors of internal revenue. A suggested form of memorandum receipt, which shall be provided by the depositaries at their own expense, is shown as Exhibit C of this circular. (C) Depositaries will identify each Federal Depositary Receipt in the space provided on the reverse thereof, by indicating the name of the depositary and the date on which the tax deposit was received by the depositary. Depositaries should also verify each depositary receipt to de termine that the sum of the two classes of taxes is equal to the “ Total Taxes” inscribed on the receipt. (D ) Depositaries shall forward daily to the Federal Reserve Bank of their district the Federal Depositary Receipts inscribed by employers, together with payment in funds immediately available at the Federal Reserve Bank point or advice that funds have been credited in the Treasury Tax and Loan Account of the depositary, covering the aggregate amount of all Federal tax deposits received during that day. (Regulations governing deposits in Treasury Tax and Loan Accounts are contained in Treasury Department Circular No. 92, Revised.) Each transmittal will be accompanied by a transmittal letter in the form prescribed by the Federal Reserve Banks. It is important that the Federal Depositary Receipts be forwarded daily in order that they may be validated by the Federal Reserve Bank and returned directly to the respective employers without delay, together with a blank Federal Depositary Receipt for the employer’s use in making his next deposit. (E ) Depositaries will establish, prior to transmittal to the Federal Reserve Bank, an adequate record of all deposits received from employers, so that the depositary will be able to identify deposits in the event depositary receipts are lost in shipment between depositaries and Fed eral Reserve Banks. For this purpose, it will only be necessary to maintain a record of the date of payment, the employer’s identification number and the total amount of tax deposit; therefore, copies of memorandum receipts and copies of the depositary’s transmittal letter, if individual deposits and employers’ identification numbers are listed separately, could be used to provide the necessary information. 7. Issuance of Replacement Receipts: Inquiries from, Employers In the event a depositary receipt, which has been validated by a Federal Reserve Bank, is lost, stolen, or destroyed before it is forwarded to a collector of internal revenue with the employer’s quarterly Federal tax return on Form 941, the employer will be issued a replacement receipt upon proper application and submission of required evidence to the Federal Reserve Bank which vali dated the receipt. Such issuance of replacement receipts will be governed by requirements and procedure prescribed by the Secretary of the Treasury. Depositaries should instruct employers to execute “ Application for Issuance of Replacement Depositary Receipt,” indicating thereon the date and amount of deposit, employer’s name, address, and identification number, and the serial number of the validated receipt, and should indicate whether deposit was made with the depositary for Federal taxes or with the Federal Reserve Bank direct. 10—60166-1 3 In the event an employer makes inquiry of a depositary with respect to a deposit made with such depositary, for which he has not received a validated receipt from the Federal Reserve Bank, the depositary should furnish the required information, stated in the preceding paragraph, to the Federal Reserve Bank to enable it to investigate the matter. If a depositary receipt without the employer’s identification number inscribed thereon is pre sented to a depositary by an employer when he makes his deposit of Federal taxes, the depositary should request him to inscribe the identification number in the space provided. In the event the employer has not been assigned an employer’s identification number, the depositary should never theless accept the deposit. If the employer has not made application for an identification number to the collector for his district, the depositary should request him to do so. 8. Termination of the Qualification of a Depositary for Federal Taxes The Secretary of the Treasury may terminate at any time the qualification of any depositary for Federal taxes. Failure upon the part of a depositary to comply with the provisions of this cir cular, and any amendments or supplements thereof, or with instructions issued pursuant thereto, may, in the discretion of the Secretary of the Treasury, constitute grounds for termination of quali fication. Likewise, any depositary may terminate its qualification upon formal notice to the Secre tary of the Treasury, through the Federal Reserve Bank of its district. 9. Treatment by Collector of Internal Revenue of Validated Depositary Receipts Deposits of Federal taxes made by employers with depositaries for Federal taxes and Federal Reserve Banks shall be treated as payment of such taxes to collectors of internal revenue upon the filing of the employer’s quarterly Federal tax return on Form 941 and the presentation therewith to such collectors of properly executed and validated Federal Depositary Receipts. Collectors of in ternal revenue will deposit all such Federal Depositary Receipts, as Internal Revenue collections, with the Federal Reserve Bank of the district in which the collector’s head office is located. Each such deposit shall be accompanied by an appropriate certificate of deposit which shall not include any other class of remittances. In any case in which a Federal Depositary Receipt is deposited by a collector of internal revenue with a Federal Reserve Bank, and it is determined that the employer failed to pay to a depositary or a Federal Reserve Bank the amount stated thereon, the Federal Reserve Bank may return such item to the collector of internal revenue, under procedure prescribed by the Secretary of the Treasury. 10. Functions to be Performed by Federal Reserve Banks The functions to be performed by Federal Reserve Banks, as fiscal agents of the United States, with respect to Federal taxes applicable to wages paid on or after January 1,1950, will be prescribed in detailed instructions to such banks. The Federal Reserve Banks will perform such additional functions relating to the deposit of Federal taxes as may be required from time to time by the Sec retary of the Treasury. In general, Federal Reserve Banks w ill: (A ) Receive directly from employers deposits of Federal taxes, accompanied by inscribed Federal Depositary Receipts, and establish appropriate accounting control for such deposits. The re quirements upon employers with respect to inscribing Federal Depositary Receipts and use of the prescribed receipt form, described in Section 6 (A ) of this circular, shall be applicable to tax deposits made directly with Federal Reserve Banks. (B) Be responsible for the qualification of designated banks as Depositaries for Federal Taxes and for the general supervision of depositaries’ operations under such qualification. (C ) Receive from depositaries remittances and inscribed depositary receipts, relating to tax deposits made with depositaries by employers, and establish appropriate accounting control for such tax deposits. 16-60166-1 4 (D ) Validate depositary receipts, relating to tax deposits made with depositaries, as well as directly with the Federal Reserve Bank, and return such validated receipts to employers, together with blank depositary receipt forms for use by the employers in making their next deposit of Federal taxes. (E ) Perform the necessary functions to provide for crediting deposits of Federal taxes in Treas ury Tax and Loan Accounts of depositary banks, with respect to deposits made directly with Federal Reserve Banks, as well as those received by depositaries. (F ) Receive deposits of validated depositary receipts from collectors of internal revenue for appro priate credit and clearance in the account o f the Treasurer of the United States. (G) Perform appropriate matching and auditing functions to verify that the tax deposits, repre sented by the depositary receipts deposited by collectors of internal revenue, were previously received by the Federal Reserve Bank from depositaries or directly from employers. (H ) Issue replacement receipts, referred to in Section 7 hereof, for validated depositary receipts which are lost, stolen or destroyed. 11. Amendment or Revocation of Regulations The Secretary of the Treasury may revoke or amend any or all provisions of this circular at any time or from time to time. JOHN W. SNYDER, Secreta/ )'y of the Treasury. 16— 60 1 66 -1 EXHIBIT A D e p a r t m e n t C ir c u l a r N o . 848 Page 1 Form No. 469 TR E A SU R Y DEPARTM EN T F i s c a l S e r v ic e B u r e a u of A c c o u n ts APPLICATION-AGREEMENT, DEPOSITARY FOR FEDERAL TAXES* The undersigned, a Designated Depositary and Financial Agent of the Government for receiving from employers deposits of Federal taxes, as defined in United States Treasury Department Circular No. 848, dated November 10, 1949, hereby makes application to qualify pursuant to the provisions of Section 6 of that circular, to receive such deposits and agrees as follows: 1. The undersigned in the performance of its duties as a “ Depositary for Federal Taxes,” as that term is defined in Section 2 of United States Treasury Department Circular No. 848, dated November 10, 1949, will without compensation for its services comply with all the requirements of that circular and any amendments or supplements thereof and instructions issued pursuant thereto. 2. The provisions of this agreement may be supplemented, amended or modified at any time subsequent hereto by agreement in writing between the undersigned and the Secretary of the Treas ury, as provided in the attached resolution of its board of directors. In W it n e s s W hereof, the undersigned has caused the signature of its officer below-named and its corporate seal duly attested to be affixed hereto th is________________________________ day of ________ ___ ______________ , 19____ , intending to be legally bound hereby. (Name of bank) [seal] B y ----------- -----------------------------------------------(Signature and title of officer executing agreement) A ttest______________________________ (Signature and title) *The execution of this Application-Agreement must be authorized by resolution of the Board of Directors of the designated Depositary, a certified copy of which on Form 460 must accompany this Application-Agreement. —60166-1 16 EXHIBIT A D e p a r t m e n t C ir c u l a r N o . 848 Page 2 Form No. 460 T R EA SU R Y DEPARTM ENT F i s c a l S e r v ic e B u reau of A ccounts RESOLUTION AUTHORIZING EXECUTION OF APPLICATION-AGREEMENT, DEPOSITARY FOR FEDERAL TAXES T h is Is to C e r t if y , That at a meeting of the Board of Directors o f __ _______________________ ___________________________________________________________________________________ , held on _________________________________ , 19 ____ , 1. “ R eso lved , the following resolution was duly adopted: That* ______________________________________________________________________ of this bank is hereby authorized to execute on behalf of this bank the ‘Application-Agreement, Depositary for Federal Taxes/ Treasury Department Form No. 4 6 9 , such execution to be under seal and with the attestation of an officer of this bank, other than an officer executing the Agreement. 2. “ R e so l v e d F u r t h e r , That any of such officers of this bank is authorized to execute in similar form on behalf o f this bank such agreements to supplement, amend, or modify the terms of such ‘Application-Agreement, Depositary for Federal Taxes/ as may from time to time be requested or approved by the Secretary of the Treasury. 3. “ R e so l v e d F u r t h e r , That any of such officers of this bank is hereby authorized to take any action on behalf of this bank which may be required in connection with the performance of its duties as a ‘Depositary for Federal Taxes’ as that term is defined in Section 2 of United States Treasury Department Circular No. 8 48, dated November 1 0 ,1 9 4 9 .” [SEAL] (Name and title of certifying officer**) ♦Insert title(s) of authorized officer(s). ••The officer certifying this resolution must have such authority. 18 - 6 0 1 6 8 -1 7 EXHIBIT B D e p a r t m e n t C ir c u l a r N o . 848 FEDERAL DEPOSITARY RECEIPT (Face) E m ployer's Identification Number In com e Tax Withheld Should be the 9-digit number appearing with the employer's name and address on the face of the quarterly tax return. Amount of income tax withheld by employer from employees' wages. F. I. C. A . Taxes Toted Taxes Amount of employment taxes under the Federal Insurance Contributions Act (Employees' Tax and Employer's Tax). Combined total of income tax withheld and F. I. C. A. taxes. (Should agree with amount of remittance.) Street Address, City, Postal Zone, and State Serial Number This number will be assigned by Federal Reserve Bank at time of validation. Employers should make record of this number for use in the event of lost, stolen, or destroyed validated receipts. Name of Employer Use address to which receipt is to be returned after validation by the Federal Reserve Bank. Use name as it appears on the quarterly tax return. Deposit Received Validation of receipt by Federal Reserve Bank will be made in this area, subject to collection of employer's check. (Reverse) DO NOT M U T IL A T E 2 ° (/> UJ 5< CO UJ <ro UJ _J ujtr IN S T R U C T IO N S TO (. Filling out receipt form : Print in spaces provided on face of receipt form ’using pen or typewriter (a ) amount of income tax withheld; (b) amount of taxes, under Federal Insurance Con tributions Act; (c) total taxes; (d) employer's identification number; and (e) name of employer and address to which this receipt should be returned following validation by Federal Reserve Bank. The employer's identification number should be the nine digit number appearing with the employer's name and address on the face o f the quarterly fax return. 2. How to moke deposit: Mail filled-out receipt form , together with single remittance covering the total amount of taxes to the Withheld Tax Deportment of any parent Federal Reserve Bank. Remittance should be in the form of check or money order, payable to the Federal Reserve Bank to which mailed. Employer may. if he prefers, make deposit with a commercial bank, which is qualified os a Depositary for Federal Taxes , instead of with a Federal Reserve Bank. Employer should deliver filled-out receipt form, together with remittance, to the depositary. Depositary will forward receipt'form to the Federal Reserve Bank which will validate and return it direct to employer. 3. When to moke deposits: Deposit should be made within 15 days after the. close of each month; however, for the last month of The calendar quarter, employer may include with his return a remittance direct to the collector. 8 EM PLO YERS DO NOT S P IN D L E 4. V a lidation of receipts by Federal Reserve Banks: Federal Reserve Banks will -validate receipts and return them direct to employers. Employer should retain validated receipts until filing quarterly tax return, and enclose witb return (do not staple). - Employer should keep a record of validated receipts which would enable him to identify them in the event-of loss. 5. Inquiries ond requests for replacement of lost validated receipts: Inquiries concerning deposits and requests for issuance of replacement receipts for lost validated receipts should be directed to the depositary or Federal Reserve Bank with which the deposit was mode. All such inquiries and requests should state date and amount of deposit, name, address, employer's identification number, and serial number of receipt. Inquiries and requests of this nature should not be made of collectors of internal revenue. Replacement receipts will be issued by Federal Reserve Bank with which deposit was made. 6. Obtaining blank receipt forms for next deposit: Federal Reserve Banks will forward a blank receipt form to employer at the time the validated receipt is returned. Do not exchange blank receipts with other employers, since identifying information is punched into each receipt. Employer may secure additional blank receipt forms from Federal Reserve Banks, if required. 16-60166-1 EXHIBIT C D e p a r t m e n t C ir c u l a r N o . 8 4 8 SUGGESTED FORM OF MEMORANDUM OR COUNTER RECEIPT * (Date) This Certifies that funds in the amount shown have been received from the employer named, covering Federal income tax withheld from wages or F. I. C. A. taxes or both, to be transmitted or credited to the Federal Reserve Bank o f _____________ ___ __ _______________ , as Fiscal Agent of the United States, pursuant to the provisions of Treasury Department Circular No. 848. $------------------(Amount) ----------------------------------------(Employer’s name and identification number) (Name of bank) (Employee of bank) FOR M EM O RAN D U M U SE O N L Y — DO NOT ATTA C H TO YO UR T A X RETURN 16---0 0 1 66 -1 V* 9 U. S. GOVERNMENT PRINTING OFFICE SPECIAL DEPOSITS OF PUBLIC MONEYS UNDER THE ACT OF CONGRESS APPROVED SEPTEMBER 24, 1917, AS AMENDED. (SECOND LIBERTY BOND ACT, AS AMENDED) 1949 T reasury D e p a r t m e n t , No. 92 (Revised) Fiscal Service— Bureau of Accounts D e p a r t m e n t C ir c u l a r O f f ic e of th e Secretary, Washington, November 10,19U9. To Federal Reserve Banks and other incorporated banks and trust companies in the United States ( including the District of Columbia), the Territories of Alaska and Hawaii, Puerto Rico, the Virgin Islands, and the Panama Canal Zone: Department Circular No. 92 (Revised), dated December 15, 1943, as amended, is revised, effec tive January 1,1950, to read as follow s: Banks and trust companies designated and qualified pursuant to the terms of this circular are given the title “ Special Depositaries of Public Moneys” and are hereinafter referred to as “ Special Depositaries.” Special Depositaries are permitted to make payment in the form of a deposit credit for the purchase price of United States Government obligations purchased by such banks or trust companies for their own account or for the account of their customers, who enter their subscrip tions through these banks or trust companies, when this method of payment is permitted under the terms of the circulars inviting subscriptions to such issues. Special Depositaries also are per mitted to establish, subject to the conditions hereinafter prescribed, deposit credit on their books for funds representing income taxes withheld under Section 1622 of the Internal Revenue Code (Subchapter D of Chapter 9 of the Internal Revenue Code) and employment taxes under the Fed eral Insurance Contributions Act, as amended (Subchapter A of Chapter 9 of the Internal Revenue Code). The deposit credits set up under this designation are called “ Treasury Tax and Loan Ac counts.” Under this arrangement the large sums of money raised by the Treasury through financ ing operations and from deposits of certain taxes are left on deposit in local banking institutions until the Treasury needs to withdraw them to meet Government expenditures, thus avoiding the dislocations in the banking system which might result from immediate withdrawal of such funds. G e n e r a l P r o v is io n s 1. All incorporated banks and trust companies in the United States (including the District of Columbia), the Territories of Alaska and Hawaii, Puerto Rico, the Virgin Islands, and the Panama Canal Zone, are hereby designated, subject to qualification in accordance with the provisions of this circular, as Special Depositaries for receiving deposits of public moneys as authorized by the Act of Congress approved September 24, 1917, as amended (Second Liberty Bond Act, as Amended), hereinafter referred to as the A c t; Provided, That no bank or trust company shall perform any of the acts covered by this designation until it has qualified so to act in the manner herein prescribed. 2. Any incorporated bank or trust company desiring to participate in the deposit of public moneys as authorized by the Act should apply for qualification through the Federal Reserve Bank of its district. Such application must be in Form H-5, hereto attached, and must be accompanied by a certified copy of a resolution, duly adopted by the Board of Directors of the applicant, in Form J-5, hereto attached. For the purpose of this circular, banks and trust companies located in the Territories of Alaska and Hawaii will be considered as being located in the San Francisco Federal Reserve district, and banks and trust companies located in Puerto Rico, the Virgin Islands and the Panama Canal Zone will be considered as being located in the New York Federal Reserve district. No incorporated bank or trust company which has made application for qualification shall act as a Special Depositary under the terms of this circular until it receives from the Federal Reserve Bank notice o f approval of the application. (l) 1 6 -6 0 1 6 4 -1 3. Special Depositaries already qualified to a sufficient amount pursuant to Department Circu lar No. 92, as previously revised and amended, will not be required to file new formal applications or resolutions, but they will, by the acceptance or retention of deposits after December 31, 1949, be conclusively presumed to have assented to all the terms and provisions hereof, and to the reten tion of collateral security theretofore pledged as collateral security hereunder. 4. A Special Depositary, heretofore or hereafter qualified, which having subscribed to an offer ing of United States bonds, notes, certificates of indebtedness, or Treasury Bills and having in due course received an allotment on its subscription refuses to receive the said allotment and to make payment therefor, or otherwise fails to comply with the provisions of this circular, may be discon tinued. A Special Depositary discontinued for any reason may be requalified by the Federal Re serve Bank of its district upon full compliance with the terms of this circular. 5. In fixing the maximum amount of deposits for which it will apply, the applicant bank or trust company should be guided by the amount of the payments which it expects to make on sub scriptions made by or through it for bonds, notes, certificates of indebtedness, and Treasury Bills of the United States issued under authority of the Act, and deposits of taxes it expects to receive under Department Circular No. 848, and, as well by any statutory limitations upon the amount of deposits which the applicant bank or trust company may receive from any one depositor. 6. Determination as to the maximum amount of deposits for which a Special Depositary may qualify is committed to the Federal Reserve Banks acting under the direction of the Secretary of the Treasury. C o l l a t e r a l S e c u r it y 7. Special Depositaries will be required, before receiving deposits, to pledge as collateral secu rity for such deposits securities of any of the following classes, to an amount, taken at the rates and conforming to the conditions provided below, at least equal to such deposits; provided, that no collateral security shall be required for such part of the deposits as are insured under section 12B of the Federal Reserve Act, as amended: (a) United States Government Securities.— Transferable bonds, notes, certificates of indebted ness, and Treasury Bills of the United States Government of any issue, including interim certificates or receipts for payment therefor, except such secu rities as by the terms of their issue are not accept able as security for deposits of public moneys; all at face value. (b) Obligations Guaranteed by the United States.— Obligations fully and unconditionally guar anteed by the United States both as to principal and interest; all at face value. (c) Obligations of Government Agencies.— Obligations of the Federal Land Banks, Federal Intermediate Credit Banks, Federal Home Loan Banks, the Federal National Mortgage Associa tion, and the Central Bank for Cooperatives; all at face value. (d) Obligations of Local Public Agencies and Public Housing Agencies.— (1) Obligations of a local public agency (as defined in section 110 (h) of the Housing Act of 1949) or of a public housing agency (as defined in the United States Housing Act of 1937, as amended) which have a maturity of not more than eighteen months, if such obligations are secured by an agreement be tween the obligor agency and the Housing and Home Finance Administrator or the Public Housing Administration in which the agency agrees to borrow from the Administrator or Administration, and the Administrator or Administration agrees to lend to the agency, prior to the maturity of such obligations, moneys in an amount which (together with any other moneys irrevocably com mitted to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity, which moneys under the terms of said agreement are required to be used for that purpose, and (2) obligations of such a public housing agency as are secured by a pledge of annual contributions under an annual contributions contract between such public hous ing agency and the Public Housing Administration if such contract shall contain the covenant by 2 1 6 -6 0 1 6 4 -1 the Public Housing Administration which is authorized by subsection (b) of section 22 of the United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period specified in such contract pursuant to said subsection 22 (b) shall not be less than the annual amount and the period for payment which are requisite to provide for the payment when due of all install ments of principal and interest on such obligations. These obligations may be accepted at face value. (e) Philippine Islands, Insular, and Territorial Government Securities.— Bonds and certifi cates of indebtedness of the Philippine Islands, issued prior to May 1, 1934, under authority of Acts of Congress of the United States, bonds of Puerto Rico and bonds of the Territory of Hawaii; all at market value, not to exceed face value. (f) State Bonds.— Bonds of any State of the United States, at market value, not to exceed face value. (g ) State Notes, Certificates of Indebtedness, and Warrants.— Approved notes, certificates of indebtedness, and warrants issued by any State o f the United States; at 90 percent of market value, not to exceed face value. (h) County and Municipal Securities.— Approved bonds of any county, city, or other political subdivision in the United States; and approved notes, certificates of indebtedness, and warrants with a fixed maturity issued by any county or city in the United States, which are direct obliga tions of the county or city as a whole, or which are payable from general taxes levied on all taxable property in such county or city; provided the obligations meet the requirements of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation for classification by bank examiners under Group I, as follow s: Group I securities are marketable obligations in which the investment characteristics are not distinctly or predominantly speculative. This group includes general market obligations in the four highest grades and unrated securities of equivalent value. Obligations of counties, cities, and other political subdivisions, rated in one of the three highest grades by a recognized investment service organization regularly engaged in the business of rating or grading bonds, may be accepted at 90 percent of market value, not to exceed face value, and other qualified obligations of counties, cities, and other political subdivisions may be accepted at 80 percent of market value, not to exceed face value. (i) Corporate Securities.— Approved bonds, notes, and other obligations o f domestic corpora tions, provided they meet the requirements for classification under Group I as defined in subpara graph (h )— “ County and Municipal Securities” — at 80 percent of market value, not to exceed face value. ( j) Commercial and Agricultural Paper and Bankers’ Acceptances.— Commercial and agri cultural paper and bankers’ acceptances having a maturity at the time of pledge o f not to exceed six months, and notes of correspondent incorporated banks or trust companies secured by such commercial or agricultural paper or bankers’ acceptances, all of which are approved by the Fed eral Reserve Bank of the district in which the depositary is located; at 80 percent of face value. (k) Obligations of the International Bank fo r Reconstruction and Development.— Obligations issued or guaranteed by the International Bank for Reconstruction and Development, all at face value. 8. The Secretary of the Treasury reserves the right to require all or any stated percentage of deposits received by any bank pursuant to the provisions of this circular and not insured under sec tion 12B o f the Federal Reserve Act, as amended, to be secured by pledge of United States Govern ment securities or obligations guaranteed by the United States as defined in subparagraphs 7 (a) and 7 (b) above. 3 16— 00164-1 9. The stipulations as to the rates at which collateral may be accepted hereunder are intended to indicate maximum values only and the right is expressly reserved to call for or require addi tional collateral security at any time. 10. The approval and valuation of securities is committed to the several Federal Reserve Banks, acting under the direction of the Secretary of the Treasury. The withdrawal of securities, the pledge of additional securities, and the substitution of securities shall be made from time to time as required or permitted by the Federal Reserve Banks, acting under like direction. Custody of Securities 11. All securities accepted as collateral security for deposits hereunder must be deposited with the Federal Reserve Bank or Branch of the district in which the depositary is located, as fiscal agent of the United States, or by the direction of and subject to the order of such Federal Reserve Bank or Branch, as fiscal agent of the United States, with a custodian or custodians within the United States designated by such Federal Reserve Bank, and under such terms and conditions as it may prescribe. Deposits in Treasury Tax and Loan Account 12. Each qualified Special Depositary will be required to open and maintain or continue for the account of the Federal Reserve Bank of its district, as fiscal agent of the United States, a sepa rate account for deposits to be made under this circular, to be known as the “ Treasury Tax and Loan Account.” 13. Qualified Special Depositaries, if and to the extent from time to time hereafter authorized by the Secretary of the Treasury, may be permitted t o : (a) Make payment by credit, when due, to the Treasury Tax and Loan Account, of amounts payable on subscriptions made by or through them, for bonds, notes, certificates of indebtedness, and Treasury Bills of the United States issued under authority of the Act of September 24, 1917, as amended, in the manner hereinafter prescribed. (b ) Deposit in the Treasury Tax and Loan Account, in the manner hereinafter prescribed, such funds representing deposits of income taxes withheld and employment taxes under the Fed eral Insurance Contributions Act, as may be made by employers with such bank when acting as a Depositary for Federal Taxes, under Department Circular No. 848. (c) Deposit in the Treasury Tax and Loan Account, in the manner hereinafter prescribed, funds representing income taxes withheld and employment taxes under the Federal Insurance Contributions Act deposited by employers with a Federal Reserve Bank, in an amount not exceed ing the amount of checks drawn on the depositary bank by employers when remitting such taxes to the Federal Reserve Bank. 14. The amount deposited with any Special Depositary shall not in the aggregate exceed at any one time (a) the maximum amount for which it shall have been qualified as a depositary, nor (b) the aggregate amount of the collateral security pledged by it taken at the rates hereinbefore pro vided, excepting that part of the deposits insured under section 12B o f the Federal Reserve Act, as amended. How Deposits Are To Be Made 15. In order to make payment by credit to its Treasury Tax and Loan Account for amounts payable in transactions described in subsection (a ) of section 13 above, the Special Depositary must, on or before the date when such payment is due, notify the Federal Reserve Bank of the district of such intention and issue a certificate o f advice to such Federal Reserve Bank, stating that a sum specified has been deposited with such depositary for the account o f such Federal Reserve Bank, as fiscal agent of the United States, in the Treasury Tax and Loan Account. Such certificate of advice will be furnished in the form and manner prescribed by the Federal Reserve Bank. 4 16— 60164-1 16. Likewise the Special Depositary must issue a certificate of advice, in the manner outlined in the preceding paragraph, and in accordance with the provisions of Department Circular No. 848, if it elects to deposit in its Treasury Tax and Loan Account funds representing deposits of taxes de scribed in subsection (b) of section 13 above. 17. Special Depositaries may elect, at their option subject to the conditions hereinafter pre scribed, to deposit in their Treasury Tax and Loan Accounts funds equivalent to the amount of checks drawn on them by employers when remitting taxes to a Federal Reserve Bank, as described in subsection (c) of section 13 above. Such deposits shall be made on the basis of documents en titled “ Special Draft for Credit in Treasury Tax and Loan Account” (Form 453), attached hereto as Exhibit C, which will be prepared and transmitted to the depositary by Federal Reserve Banks. The terms and conditions governing the use of these special drafts are set forth in the following section. Special Draft for Credit in Treasury Tax and Loan Account 18. A Special Draft for Credit in Treasury Tax and Loan Account, in the form prescribed in Exhibit C hereof, will be prepared daily by each Federal Reserve Bank for each Special Depositary in its district upon which checks are drawn by employers when remitting to a Federal Reserve Bank the amount of income taxes withheld and employment taxes under the Federal Insurance Con tributions Act. A single special draft will be prepared daily for the aggregate amount of such checks drawn on each depositary. Each Federal Reserve Bank will take note of checks received by it covering such taxes, which are drawn on commercial banks located in other Federal Reserve dis tricts, and will notify the Federal Reserve Bank of the district in which such commercial banks are located o f the aggregate amount of such checks drawn on each commercial bank. Thus, the amount of the special draft will include the total amount of checks drawn on a Special Depositary, which are received directly by the Federal Reserve Bank preparing the draft, together with the aggregate amount o f checks drawn on such depositary, which were remitted by employers to other Federal Reserve Banks. 19. Pursuant to authority contained in this circular, the Special Depositary may exercise its option o f depositing in its Treasury Tax and Loan Account moneys in an amount equal to the amount of the special draft by executing such draft and presenting it to the Federal Reserve Bank upon which it is drawn, in accordance with the terms and provisions appearing on the face of the special draft and hereinafter described. Upon proper execution and timely presentation according to the terms thereof, the special draft will be paid by the Federal Reserve Bank on which drawn, as Fiscal Agent of the United States, by charge to the General Account of the Treasurer of the United States. 20. The Special Depositary shall execute the special draft by signing and dating it in the spaces provided on the face thereof. Execution of the draft will constitute certification that the amount shown has been credited by the Special Depositary to the Federal Reserve Bank on which drawn, as Fiscal Agent of the United States, Treasury Tax and Loan Account. 21. The Special Depositary, if a member of the Federal Reserve System, or non-member clear ing bank, should transmit the executed special draft to a correspondent member bank or directly to the Federal Reserve Bank or Branch in which the depositary’s reserve or clearing account is maintained. Non-member depositaries should transmit the special draft through their correspond ent banks which are members of the Federal Reserve System or non-member clearing banks. All special drafts transmitted through a correspondent bank should be restrictively endorsed by the de positary on the reverse thereof in favor of the correspondent bank. Such correspondent banks will endorse, date, and present for payment, the special draft to the Federal Reserve Bank or Branch on which drawn. All risks of collection of special drafts shall be borne by the Special Depositaries in whose favor they are drawn. 22. The special draft should be presented to the Federal Reserve Bank or Branch before the expiration of the number of business days specified on the face of the special draft, in order to 5 16-60X 64-1 receive credit therefor. The Federal Reserve Bank will specify on the face of the special draft, at the time of preparation, the number of business days within which it should be presented, which period of time will be based upon normal check collection schedules for the point at which the Spe cial Depositary is located. The Federal Reserve Bank may, in its discretion, reject any special draft not presented within the time specified on the face thereof. Withdrawal of Deposits 23. All deposits will be payable on demand without previous notice. Calls for withrawals of deposits with Special Depositaries will be made by direction of the Secretary of the Treasury through the Federal Reserve Banks, and such depositaries will be required to arrange for pay ments o f such calls in funds that will be immediately available on the payment due date. 24. The right is reserved to amend or supplement or revise the provisions of this circular at any time or from time to time. JOHN W. SNYDER, Secretary of the Treasury. Attachments 6 16-60 16 4 -1 EXHIBIT D e p a r t m e n t C i r c u l a r N o . 92 (R evised ) A FORM H-5— BUREAU OF ACCOUNTS (Revised November 10, 1949) APPLICATION FOR DEPOSITS (City and State) (Date) To the Federal Reserve Bank o f ____ __________________ , fiscal agent of the United States: The undersigned bank or trust company, in accordance with the provisions of Treasury De partment Circular No. 92 (revised November 10, 1949), and pursuant to due action of its board of directors, hereby makes application for the deposit of public moneys with it from time to time under the Act of Congress approved September 24, 1917, as amended, the aggregate amount of such deposits not to exceed at any one time $__________________ ; and assigns and agrees to pledge, from time to time to and with the Federal Reserve Bank o f ______________________, as fiscal agent of the United States, as collateral security for such deposits as may be made from time to time pur suant to this application, securities of the character and amount required by said circular. By President (Vice President) Street [SEAL] ______ — — -------- City or Town State 7 _______ 1 6 -6 0 1 6 4 -1 D e p a r tm e n t C ir c u la r EXHIBIT B No. 92 (R evised ) FORM J-5— BUREAU OF ACCOUNTS (Revised November 10, 1949) RESOLUTIONS AUTHORIZING APPLICATION FOR DEPOSITS (City and State) (Date) I H e r e b y C e r t if y that the following resolutions were duly adopted at a meeting of the boar o f directors of the below-named bank (trust company), which meeting was duly called and duly held on th e __________ day o f __________________ , 19 ____ , a quorum being present, and that the said resolutions were spread upon the minutes of said meeting: R e so l v e d , That in accordance with the provisions of Treasury Department Circular No. 92 (revised November 10, 1 9 4 9 ), this bank (trust company) makes application for the deposit of pub lic moneys with it from time to time under the Act of Congress approved September 2 4 , 1917, as amended, the aggregate amount of such deposits not to exceed at any one time $_______________ ; and assigns and agrees to pledge from time to time to and with the Federal Reserve Bank of ______________________, as fiscal agent of the United States, as collateral security for such deposits as may be made from time to time, pursuant to such application, securities of the character and amount required by said circular; and R e so l v e d , That *________________________ II_______________________________________________ of the undersigned bank (trust company), is hereby authorized to make application, assignment, and agreement as aforesaid, and from time to time to deliver to and pledge with said Federal Re serve Bank, or any custodian or custodians appointed by it, securities of the undersigned bank (trust company) of a character and amount at least sufficient to secure such deposits according to the terms of said Treasury Department circular, and from time to time to withdraw securities and to substitute other securities and to pledge and deposit additional securities. In W it n e s s W hereof I have hereunto signed my name and affixed the seal of (Nasie of bank) (City and State) [seal] _______________________________________ Cashier (Secretary) *Insert title (s) of authorized officer(s). 8 18— 60164-1 D e p a r tm e n t C ir c u la r No. 92 (Revised) EXHIBIT C SPECIAL DRAFT FOR CREDIT IN TREASURY TAX AND LOAN ACCOUNT 2-30 710 FEDERAL RESERVE BANK OF CHICAGO FISCAL AGENT OF THE UNITED STATES CHICAGO. ILL. 1234567 SPECIAL DRAFT FOR CREDIT IN TREASURY TAX AND LOAN ACCOUNT PAY TO THE NAMED DEPOSITARY OR ORDER THE AMOUNT SHOWN BELOW. WHICH CONSTITUTES A TRANSFER FROM THE ACCOUNT OF THE TREASURER OF THE UNITED STATES. PURSUANT TO TREASURY DEPARTMENT CIRCULAR NO. 92 REVISED. BY THE ABOVE FEDERAL RESERVE BANK. TO THE NAMED DEPOSITARY. OF AN AMOUNT NOT EXCEEDING THE AMOUNT OF CHECKS DRAWN UPON THE LATTER AND DEPOSITED AS TAXES WITH THE FEDERAL RESERVE BANK FOR CREDIT TO THE TREASURER OF THE UNITED STATES. THIS DRAFT SHOULD BE PRESENTED TO THE FEDERAL RESERVE BANK OR BRANCH FOR CREDIT BEFORE THE EXPIRATION OF DATE OF ADVICE MO. DAY YR. BUSINESS DAYS FROM THE DATE OF ADVICE SHOWN HEREON. AMOUNT CREDITED MEMBER BANKS AND NONMEMBER CLEARING BANKS SHOULD FOR WARD THIS DRAFT FOR CREDIT TO A CORRESPONDENT MEMBER BANK OR DIRECTLY TO THE FEDERAL RESERVE BANK OR BRANCH WITH WHICH THEIR RESERVE OR CLEARING ACCOUNT IS MAINTAINED. NONMEMBER BANKS SHOULD FORWARD THIS DRAFT FOR CREDIT TO A CORRESPONDENT MEMBER OR NONMEMBER CLEARING BANK. I certify that the amount shown above has been credited by the depositary to the above Federal Reserve Bank as Fiscal Agent of the United States Treasury Tax and Loan Account, pursuant to Treasury Department Circular No. 92—Revised, to be held subject to withdrawal on demand. 16---6 0 1 64 -1 9 U. S. GOVERNMENT PRINTING OFFICE UNITED STATES OF AMERICA 2 PERCENT DEPOSITARY BONDS SECOND SERIES 1949 Department C ir c u la r No. 660 F ir s t Amendment to F ir s t Supplement F is c a l S e rv ice Bureau o f the P u b lic Debt TREASURY DEPARTMENT O ffi c e o f the S e cre ta ry Washington, November 10, 1949. The issu e o f 2 P ercen t D ep osita ry Bonds, Second S e r ie s , under the F ir s t Supplement, dated June 29, 1943, to Department C ir c u la r No. 660, i s h ereby term inated as o f the c lo s e o f b u sin ess January 1, 1950. A ll 2 P ercen t D ep osita ry Bonds, Second S e r ie s , ou tsta n d in g on February 28, 1950, w i l l be redeemed as o f the c l o s e o f b u sin ess on that d a te . N o tice o f redem ption w i l l be giv en to the h o ld e rs o f such bonds as p ro v id e d by the terms t h e r e o f. JOHN W. SNYDER S e cre ta ry o f the Treasury REGULATIONS GOVERNING THE PAYMENT THROUGH DEPOSITARY BANKS OF FUNDS 1TTTHHELD AS TAXES IN ACCORDANCE WITH THE PROVISIONS OF THE CURRENT TAX PAYMENT ACT OF 1943 1949 Department Circular No* 714 Fifth Amendment F iscal Service Bureau o f Accounts TREASURY DEPARTMENT OFFICE OF THE SECRETARY Washington, D. C. November 10, 194-9 The q u a lific a tio n o f a l l D epositaries fo r Withheld Taxes, q u a lifie d pursuant to Treasury Department Circular No. 714* dated June 25, 1943, as amended, -will be terminated as o f the close o f business February 28, 1950; provided, however, that no such q u a lifie d depositary i s author ized to receive from employers a fte r January 31, 1950, funds withheld as taxes pursuant to the Current Tax Payment Act o f 1943, as amended; and provided fu rth er, that no designated bank sh all be q u a lifie d , under the provisions of th is c ir c u la r , as a Depositary fo r Withheld Taxes, a fte r January 31, 1950. N o tifica tio n of termination o f q u a lifica tio n w ill be given to each depositary as provided in Section 9 o f Department Circular No. 714, as amended. The 2 Percent Depositary Bonds, Second S eries, which have been a llo tte d to banks q u a lifie d and actin g as Depositaries fo r Withheld Taxes w i l l be redeemed as o f the clo s e o f business on February 28, 1950, in accordance with n otice of redemption which w il l be given to the holders o f such bonds as provided by the terms th e re o f. E ffe ctiv e January 1, 1950, a new procedure w i l l be adopted fo r handling income taxes withheld and employment taxes under the Federal Insurance Contributions A ct, w ith respect to wages paid on and a fte r that d ate. Banks that d esire to accept deposits o f such taxes from employers, under the new procedure app lica b le to wages paid on and a fte r January 1, 1950, must be q u a lifie d to so act by the Federal Reserve Bank o f the d i s t r i c t in which they are loca ted , in accordance with the provisions o f Department Circular No. 848, dated November 10, 1949. JOHN 7'. SNYDER Secretary o f the Treasury Form N o. 468 TREASURY DEPARTMENT F i s c a l S e r v ic e B u reau of A ccounts RESOLUTION AUTHORIZING EXECUTION OF APPLICATION-AGREEMENT, DEPOSITARY FOR FEDERAL TAXES T h is Is t o C e r tify , That at a meeting of the Board of Directors o f __________________________ ____________________________________________________________________________________ held on __________________________, 19____ , the following resolution was duly adopted: 1. “ R e s o lv e d , That* ______________________________________ *______________________________ of this bank is hereby authorized to execute on behalf of this bank the ‘Application-Agreement, Depositary for Federal Taxes,’ Treasury Department Form No. 469, such execution to be under seal and with the attestation of an officer of this bank, other than an officer executing the Agreement. 2. “ R e so l v e d F u r t h e r , That any of such officers of this bank is authorized to execute in similar form on behalf of this bank such agreements to supplement, amend, or modify the terms of such ‘Application-Agreement, Depositary for Federal Taxes,’ as may from time to time be requested or approved by the Secretary of the Treasury. 3 . “ R e so l v e d F u r t h e r , That any of such officers o f this bank is hereby authorized to take any action on behalf of this bank which may be required in connection with the performance of its duties as a ‘Depositary for Federal Taxes’ as that term is defined in Section 2 of United States Treasury Department Circular No. 848, dated November 10, 1949.” [seal] (Name and title of certifying officer**) ♦Insert title(s) of authorized officer(s). **The officer certifying this resolution must have such authority. U. S. GOVERNMENT PRINTING OFFICE 16—60168-1 Form No. 469 TREASURY DEPARTMENT F i s c a l S e r v ic e B u reau op A ccou nts APPLICATION-AGREEMENT, DEPOSITARY FOR FEDERAL TAXES* The undersigned, a Designated Depositary and Financial Agent of the Government for receiving from employers deposits of Federal taxes, as defined in United States Treasury Department Circular No. 848, dated November 10,1949, hereby makes application to qualify pursuant to the provisions of Section 6 o f that circular, to receive such deposits and agrees as follows: 1. The undersigned in the performance of its duties as a “ Depositary for Federal Taxes,” as that term is defined in Section 2 of United States Treasury Department Circular No. 848, dated November 10, 1949, will without compensation for its services comply with all the requirements of that circular and any amendments or supplements thereof and instructions issued pursuant thereto. 2. The provisions of this agreement may be supplemented, amended or modified at any time subsequent hereto by agreement in writing between the undersigned and the Secretary of the Treas ury, as provided in the attached resolution of its board of directors. IN W itn e s s W h e re o f, the undersigned has caused the signature of its officer below-named and its corporate seal duly attested to be affixed hereto th is________________________________ day of ___________________________ , 19__intending to be legally bound hereby. (Name of bank) [s e a l] B y ________________________________________ (Signature and title of officer executing agreement) A ttest______________________________ (Signature and title) •The execution of this Application-Agreement must be authorized by resolution of the Board of Directors of the designated Depositary, a certified copy of which on Form 460 must accompany this Application-Agreement. 0 . S. GOVERNMENT PRINTING OFFICE 10— 0O167-1
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