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F E D E R A L R E S E R V E BAN K O F NEW YORK Fiscal Agent of the United States r Circular N o. 4 4 5 7 ~ 1 L May 8. 1957 IN D O RSEM EN T AN D P A Y M E N T OF G O V E R N M E N T CHECKS T o A ll Banking Institutions in the Second Federal R eserve D istrict: A t the request o f the T reasury Departm ent, we are enclosing a cop y o f the Second Amendm ent, dated M arch 13, 1957, to T reasury D epartm ent Circular No. 21 (R evised Septem ber 5, 1946), containing the regulations governing the indorsem ent and paym ent o f checks drawn on the T reasurer o f the U nited States. A m ong other things, the amendment provides in effect that certain classes o f Government checks which form erly could be negotiated only under a specific pow er o f attorney executed after the issuance o f each check and describing it in fu ll m ay now also be negotiated under a special pow er o f attorney lim ited to a period not exceeding twelve months and executed in fa vor o f a bank. A lfred H ayes, President. J REGULATIONS GOVERNING THE INDORSEMENT AND PAYMENT OF CHECKS DRAWN ON THE TREASURER OF THE UNITED STATES 1957 Department Circular No. 21 (Revised September 1946) (Second Amendment) Fiscal Service Office of the Treasurer, U. S. TREASURY DEPARTMENT OFFICE OF THE SECRETARY Washington, D. C. MAR 1 3 1957 To all Banks and Bankers and Others Concerned: Treasury Department Circular No. 21, (Revised) dated September 5> 1946, as amended, is hereby further amended by revising paragraphs 5 and 6 to read as follows: 5. Checks indorsed by an attorney in fact. Checks indorsed by an attorney in fact for the payee and presented for payment by a bank will be paid by the Treasurer without the submission to the Treasurer of documentary proof of the authority of the attorney in fact. A general power of attorney in favor of an individual, bank or other appropriate entity is acceptable as authority for the indorsement of checks issued for the following purposes: 1. Principal or interest on public debt obligations or obligations guaranteed by the United States. 2. Tax refunds. 3. Payments for goods and services. Other classes of checks drawn on the Treasurer of the United States may be negotiated only under a specific power of attorney executed after the issuance of the check and describing it in full, except that such classes of checks may be negotiated also under a special power of attorney naming a bank as attorney in fact, limited to a period not exceeding twelve months and reciting that it is not given to carry into effect an assignment of the right to receive payment, either to the attorney in fact or to any other person. Powers of attorney are revoked by the death of the grantor and may also be revoked by notice from the grantor to the parties concerned. Notice of revocation to the Treasury will not ordinarily serve to revoke the power. 6. Incompetent payees. Where the payee of a check of any class not listed in para graph 4(a) has been declared incompetent, the check should not be indorsed by a guardian or other fiduciary but, instead, should be returned co the drawer, or to the adminis trative office which authorized the issuance of the check, with information as to the incompetency of the payee and submission of documentary evidence showing the appointment of the guardian, in order that the particular check, and others to be issued subsequently, may be drawn in favor of the guardian. If a guardian has not been and will not be appointed the full circumstances should be stated. Checks of the classes listed in paragraph 4(a) indorsed by a guardian or other fiduciary and presented for payment by a bank will be paid by the Treasurer without the submission to the Treasurer of documentary proof of the authority of the guardian or other fiduciary. If a guardian has not been and will not be appointed, the check should be forwarded for advice to the Treasurer of the United States, Check Claims Division, Washington 25, D. C.
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