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F E D E R A L R E S E R V E BANK O F NEW YO RK Fiscal Agent of the United States r Circular No. 6 5 5 6 T L June 15, 1970 J Restriction on Payment of Treasury Checks Issued to Philippine Residents Amendment to Treasury Department Circular No. 21 To All Banlcs, and Others Concerned, in the Second Federal Reserve D istrict: A t the request of the T reasury D epartm ent, we enclose copies of (a) a T reasury D epartm ent notice entitled “ Instructions Concerning Checks Issued to Residents of the Republic of the P hilippines,” and (b) an amendment, dated A pril 22, 1970, to T reasury D epartm ent Circular No. 21 (Revised October 9, 1967). The enclosed notice states th at the T reasury D epartm ent is overprinting, in red ink, the following legend on checks drawn on the T reasu rer of the U nited States for delivery to residents of the P h ilip p in es: This check payable only through M anila office, F ir s t N ational City Bank. P aym ent will be made in accordance w ith P hilippine Foreign Exchange Regulations. Checks bearing this legend should not be accepted by banks in the U nited States, but should be returned without credit to the persons from whom they are received, calling attention to the legend. The amendment to T reasury D epartm ent Circular No. 21 extends the authorized use of special powers of attorney to negotiate checks draw n on the T reasu rer to financial organizations as defined in section 360.2 of the circular. The T reasury D epartm ent has asked us to point out th at the amendment does not in any way alter the 12-month lim ita tion on the validity of such powers (see section 360.12(c)) nor your responsibility, for your own protection as well as the G overnm ent’s, to contact annually your custom ers who have given special powers of attorney in your favor for renewal of those powers. Please encourage your employees to review the provisions of T reasury D epartm ent Circular No. 21, as now amended. Additional copies of the enclosures will be furnished upon request. A lfred H ayes, President. T I T L E 31 - M O N E Y A N D F I N A N C E : C H A P T E R II - F I S C A L S E R V I C E SUBCHAPTER , TREASURY DEPARTMENT OF THE TREASURY C - O FFICE O F T H E TREASURER O F T H E U N I T E D STATES PART 360 - I N D O R S E M E N T A N D PAYMENT OF CHECKS D R A W N O N THE TREASURER O F T H E U N I T E D STATES / D e p a r t m e n t Circular N o . Part 3 6 0 , _ S u b c h a p t e r C , 21 ( S e c o n d R e v i s i o n , First A m e n d m e n t ) / C h a p t e r II of Title 31 of the C o d e of Fe d e r a l R e g u l a t i o n s / a l s o a p p e a r i n g a s T r e a s u r y D e p a r t m e n t Circular N o . d a t e d O c t o b e r 9, 1 9 6 7 7 is h e r e b y a m e n d e d effective M a y 21, R e v i s e d , 1, 1 9 7 0 in the following w a y s : 1. S e c t i o n 3 6 0 . 2 is a m e n d e d b y a d d i n g b e l o w the definition of " F e d e r a l R e s e r v e B a n k " a n e w definition to read: " F ina ncial o rganization" m e a n s any bank, savings bank, savings a n d loan a s s o c i a t i o n or similar institution, or F e d e r a l or State chartered credit union. 2. S e ction 360. 8 ( b ) is a m e n d e d to delete the w o r d " b a n k " w h e r e v e r it a p p e a r s a n d substitute therefor the t e r m "financial orga n i z a t i o n " , a n d to r e v o k e the final s e n t e n c e thereof, s o as to read: (b) I n d o r s e m e n t of c h e c k s b y a financial o r g a n i z a t i o n u n d e r the p a y e e ' s authori z a t i o n . - - W h e n a c h e c k is credited b y a financial o r g a n i z a t i o n to the p a y e e ' s a c c o u n t u n d e r his authorization, the financial o r g a n ization m a y u s e a n i n d o r s e m e n t substantially a s follows: "Credit to the a c c o u n t of the w i t h i n - n a m e d p a y e e in a c c o r d a n c e with p a y e e ' s or p a y e e s ' instructions. Absence of i n d o r s e m e n t g u a r a n t e e d . XYZ" A financial o r g a n ization using this f o r m of i n d o r s e m e n t shall be d e e m e d to g u a r a n t e e to all s u b s e q u e n t indorsers a n d to the Tr e a s u r e r that it is acting a s a n attorney in fact for the p a y e e or p a y e e s , under his or their, authorization. 3. S e c t i o n 360 . 8 ( c ) is a m e n d e d to delete the p h r a s e "a s d e f i n e d in Part 209 of this chapter" , s o as to read: (c) I n d o r s e m e n t of c h e c k s d r a w n in favor of financial o r g a nizations. --All c h e c k s d r a w n in favor of financial or g a n i z a t i o n s , for credit to the a c c o u n t s of p e r s o n s d e s i g n a t i n g p a y m e n t s o to b e m a d e , shall b e i n d o r s e d in the n a m e of the financial o r g a n i z a t i o n as p a y e e in the u s u a l m a n n e r . - 2 Fi nancial or g a nizations receiving a n d indorsing s u c h c h e c k s shall c o m p l y fully wi t h Part 2 0 9 of this ch a p t e r (Treasury D e p a r t m e n t Circular N o . 1076, Revised). 4. S e c t i o n 3 6 0 . 1 2 ( b ) is a m e n d e d to delete in the o p e n i n g c l a u s e the w o r d " b a n k " a n d substitute therefor the t e r m "financial organiz a t i o n " , (b) G e n e r a l p o w e r s of attorney. — s o as to read: C h e c k s i s s u e d for the following c l a s s e s of p a y m e n t s m a y b e negoti a t e d u n d e r a g e n e r a l p o w e r of attorney in favor of a n individual, financial organiz a t i o n or other entity: (1) P a y m e n t s for the r e d e m p t i o n of currencies or for principal or interest o n U n i t e d States securities. 5. (2) P a y m e n t s for tax refunds. (3) P a y m e n t s for g o o d s a n d services. S e c t i o n 3 6 0 . 12(c) is a m e n d e d b y deleting the internal n u m b e r i n g , a n d b y deleting the t e r m s " b a n k i n g institution or trust c o m p a n y " a n d substituting therefor the t e r m "financial organization" , s o as to read: (c) Sp e c i a l p o w e r s of attorney .- - U n d e r d e c i s i o n s of the C o m p t r o l l e r G e n e r a l of the U n i t e d States, c l a s s e s of c h e c k s other t h a n t h o s e specified in p a r a g r a p h (b) of this section m a y b e negoti a t e d u n d e r a special p o w e r of attorney w h i c h n a m e s a financial o r g a n i z a t i o n as attorney in fact; is limited to a period not e x c e e d i n g 12 m o n t h s , a n d recites that it is not g i v e n to carry into effect a n a s s i g n m e n t of the right to re c e i v e p a y m e n t , either to the attorney in fact or to a n y other p e r s o n . 6. T h e a p p e n d i x is a m e n d e d b y deleting f r o m the description of S t a n d a r d F o r m 2 3 3 the t e r m s " r e s p o n s i b l e b a n k i n g institution or trust c o m p a n y " therefor the t e r m "financial organizati o n " , Appendix— * a n d substituting s o as to read: S t a n d a r d F o r m s For P o w e r of Attorney A n d Their Application * * * * * * * S t a n d a r d F o r m 2 3 3 .— A special p o w e r of attorney o n this f o r m n a m i n g a financial o rganization as attorney in fact, limited to a period not to e x c e e d 12 m o n t h s a n d reciting that it is not g i v e n to carry into effect a n a s s i g n m e n t of the right to receive t he p a y m e n t , fact or to a n y other p e r s o n , either to the attorney in m a y b e u s e d for c l a s s e s of p a y m e n t s other than those s h o w n under Standard F o r m 231. * * * * * * * * Fiscal As s i s t a n t Secretary Dated: April 22, 1970 GP0 89 2 -1 6 9 INSTRUCTIONS CONCERNING CHECKS ISSUED TO RESIDENTS OF THE REPUBLIC OF THE PHILIPPINES TO FEDERAL RESERVE BANKS, INCORPORATED BANKS AND TRUST COMPANIES, AND OTHERS CONCERNED: 1. To assist the Government of the Republic of the Philippines in making its Foreign Exchange Regulations effective, the Treasury Department is overprinting checks drawn on the Treasurer of the United States for delivery to residents of the Philippines, with the following legend, in red ink, in the manner illustrated on the reverse hereof: "This check payable only through Manila office First National City Bank. Payment will be made in accordance with Philippine Foreign Exchange Regulations.tr The Philippine Foreign Exchange Regulations generally require the sale to authorized agents of the Philippine Central Bank of all Foreign Exchange negotiable instruments received by any person or entity residing, or located, in the Philippines. 2. United States Treasury checks bearing the legend shown should, therefore, be negotiated in the Philippines through authorized agents of the Philippine Central Bank. The authorized agents will present the checks for payment through the Manila Branch, First National City Bank, New York. The Manila Branch of the First National City Bank will accept checks bearing the over print only from authorized agents of the Philippine Central Bank and will not accept such checks from other sources either within or outside of the Philippines. Treasury checks bearing the legend in question should not be accepted by banks in the United States and the routing symbol thereon should, therefore, be disregarded. All banking institutions of the United States receiving Treasury checks bearing the legend shown above should return them without credit to the person or other entity from which received, calling attention to the red legend on the checks. 3. Apart from the foregoing, we would also like to call the attention of all banks to the requirements of Treasury Department Circular No. 21, Revised October 9, 1967, 31 CFR 360.12 for the execution of a general or special power of attorney under the - 2 - conditions set forth in subsections (b) and (c). Particular atten tion is directed to subsection (f) of this section which requires the acknowledgement of the power of attorney in a foreign country to be made before a United States diplomatic or consular repre sentative, or by a foreign notary whose official character and jurisdiction is certified to by a United States diplomatic or consular officer. See instructions on the reverse Power of Attorney Forms designated as Standard Forms 231 and 233. TREASURY BtREAl OF ACCOUNTS D I V I S I O N OF DISBURSEMENT THIS CHECK PAYABLE O NLY TH R O U G H MANILA O FFICE MANI L A. PHILIPPINES cheek No. F I R S T N A T I O N A L C I T Y B A N K . P A Y M E N T W I L L BE M A O C IN A C C O R b A N C E WITH PHILIPPINE FO R EIG N EXCHANGE R EGULATIONS * 3^529,147 S Y M B O L 3280 < jr J PAY TO THE ORDER OF D != ! 5L■ * Li 2 O u '2n j Si 0 z 1 n FQID - HOT NEGOTIABLE o -I c Oc NO CHECK ISSU ED o ***n THIS NUMBER rtw o c jc c t . i:oooo*-oo5i«: OFFICE OF THE TREASURER OF THE UNITED STATES 1970 G P O 89 1-8 8 3
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