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at the rates and conforming to the conditions provided below, at least equal to such deposits:

(a) United States Government securities. Bonds, notes, certificates of indebtedness, and Treasury bills of the United States Government of any issue, including interim certificates or receipts for payment therefor; all at face value.

(b) Obligations guaranteed by the United States. Obligations fully and unconditionally guaranteed both as to principal and interest by the United States; all at face value.

(c) Federal farm loan, insular, and Territorial Government securities. Bonds and debentures issued under the Federal Farm Loan Act (39 Stat. 360; 12 U.S.C. Chapter 7), as amended (other than bonds of the Federal land banks as specified in (1) of this section), bonds of Puerto Rico, bonds and certificates of indebtedness of the Philippine Islands, and bonds of the Territory of Hawaii; all at market value, not to exceed face value.

(d) State bonds. Bonds of any State of the United States; at market value, not to exceed face value.

(e) State notes, certificates of indebtedness and warrants. Approved notes, certificates of indebtedness, and warrants issued by any State of the United States; at 90 percent of market value, not to exceed face value.

(f) Municipal securities. Approved bonds of any county, city, or 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 obligations 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; all at 90 percent of market value, not to exceed face value: Provided, That the obligations tendered are issued by a county, city, or political subdivision in the United States which has obligations classified in one of the three highest grades by a recognized investmentservice organization regularly engaged in the business of rating or grading bonds.

(g) Railroad, public utility, and industrial securities. Approved bonds, listed on a recognized stock exchange, and notes, of domestic railroad companies within the United States; approved equipment trust obligations of such domestic railroad companies; and approved bonds and notes of domestic electric railway and traction companies, telephone and telegraph companies, electric-light, power, and gas companies, and industrial companies, secured (directly or by the pledge of mortgage bonds) by mortgage upon physical properties in the United States and listed on a recognized stock exchange; all at 75 per cent of market value, not to exceed face value: Provided, That all such bonds, notes, and obligations are classified in one of the four highest grades by a recognized investment service organization regularly engaged in the business of rating or grading bonds.

(h) National credit corporation gold notes. Gold notes of the National Credit Corporation; at 90 percent of face value.

(i) Commercial paper and bankers' acceptances. Commercial paper and bankers' acceptances having maturity at the time of pledge

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of not to exceed 6 months, exclusive of days of grace, and which are otherwise eligible for rediscount or purchase by Federal Reserve banks, and which have been approved by the Federal Reserve bank of the district in which the depositary is located; at 90 percent of face value. All such commercial paper and acceptances must bear the indorsement of the depositary bank or trust company.

(j) Customers' notes, drafts, and bills of exchange. Customers' notes, drafts, and bills of exchange indorsed by a correspondent incorporated bank or trust company and rediscounted by the depositary bank or trust company, when approved by the Federal Reserve bank of the district in which the depositary is located; at 75 percent of face value. All such notes, drafts, and bills of exchange must bear the indorsement of the depositary bank or trust company,

(k) Notes and bills payable of a correspondent incorporated bank or trust company. Notes and bills payable of a correspondent incorporated bank or trust company secured by customers' notes drafts, or bills of exchange, or by other collateral eligible under this part, to at least an equal amount, when approved by the Federal Reserve bank of the district in which the depositary is located; at 75 percent of face value. All such notes and bills payable must bear the indorsement of the depositary bank or trust company.

(1) Federal land bank bonds, bonds issued under the Federal Farm Mortgage Corporation Act, obligations of the Reconstruction Finance Corporation, obligations of Federal Home Loan Banks, Home Owners' Loan Corporation bonds, Mutual Mortgage Insurance Fund debentures issued under the National Housing Act, and Series B Commodity Credit Corporation collateral trust notes. Bonds of the Federal land banks, bonds issued under the Federal Farm Mortgage Corporation Act (48 Stat. 344; 12 U.S.C. 1020–1020h), obligations of the Reconstruction Finance Corporation, obligations of the Federal home loan banks, bonds of the Home Owners' Loan Corporation, Mutual Mortgage Insurance Fund debentures issued under the provisions of title II of the National Housing Act, approved June 27, 1934 (48 Stat. 1247; 12 U.S.C. 1707–1715), including interim certificates issued therefor, and Series B Commodity Credit Corporation collateral trust notes; all at face value.*+ [As amended July 24, 1933, Aug. 21, 1937, Apr. 27, 1938]

203.8 Unacceptable security. No security shall be valued at more than face value. No municipal bond, obligation, or evidence of indebtedness, shall be accepted unless the municipality has been in existence for a period of 10 years. No State or municipal bond, obligation, or evidence of indebtedness shall be accepted if the State or municipality has made default in payment of principal or interest during the past 10 years.**

203.9 Additional collateral. The right is reserved to call for additional collateral security at any time.*+

203.10 Additional collateral; approval and valuation; withdrawals; substitution. 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 **For statutory and source citations, see note to 8 203.1.

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securities shall be made from time to time as required or permitted by the Federal Reserve banks, acting under like direction.**

203.11 Custody of securities. 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.*i

203.12 How deposits are to be made; War Loan Deposit Account. Each qualified 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 separate account for deposits to be made hereunder, to be known as the "War Loan Deposit Account." **

203.13 Payment by credit of amounts payable on subscriptions; form of notice. Qualified depositaries, if and to the extent from time to time hereafter authorized by the Secretary of the Treasury, may be permitted to make payment by credit, when due, of amounts payable on subscriptions made by or through them for bonds, notes, and certificates of indebtedness of the United States issued under authority of said Act. In order to make payment by credit, the 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 of advice to such Federal Reserve bank, stating that a sum specified has been deposited with such depositary for the account of such Federal Reserve bank, as fiscal agent of the United States, in the War Loan Deposit Account. Such certificate of advice must be substantially in Form K-2.**

203.14 Payment by credit in specific cases. Payment by credit through “War Loan Deposit Accounts” for accepted tenders of Treasury bills may be made in specific cases when the public notice given by the Secretary of the Treasury offering such Treasury bills authorizes payment in that manner.** [As amended Jan. 30, 1934]

203.15 Payment of income taxes cannot be made by credit; proceeds from payment thereof to be deposited in qualified depositaries. Payment of income taxes can not be made by credit. Out of the unexpended cash proceeds, if any, arising from the payment of income taxes, deposits may be made through the Federal Reserve banks, under direction of the Secretary of the Treasury, with qualified depositaries throughout the United States, as may be hereafter announced by the Secretary of the Treasury.**

203.16 Deposits and withdrawals made at direction of the Secretary of the Treasury. All deposits and withdrawals will be made by the Federal Reserve banks by direction of the Secretary of the Treasury.**

203.17 Deposits not to exceed authorized amount. The amount deposited with any depositary shall not in the aggregate exceed at any one time (a) the maximum amount for which it shall have been designated as a depositary, nor (b) the aggregate amount of the collateral security pledged by it taken at the rates provided in this part.**

203.18 Withdrawal of deposits. All deposits will be payable on demand without previous notice. Calls for withdrawals of deposits Page 28

**For statutory and source citations, see note to $ 203.1.

with special depositaries will be made through the Federal Reserve banks, and depositaries will be required to arrange for payments of such calls in funds that will be immediately available on the payment due date.**

203.19 Right reserved to amend, supplement or revise the regulations in this part. The right is reserved to amend or supplement or revise the regulations in this part at any time or from time to time.t*

PART 204—ISSUE OF DUPLICATES OF CHECKS OF THE

UNITED STATES

6

Sec.

Sec. 204.0 Requirements must be strictly Instructions for executing bond observed.

of indemnity
204.1 Advice of nonreceipt or loss. 204.8 Names and residences.
204.2 Affidavit of nonreceipt or loss. 204.9 Signature and seal.
204.3 Issue of duplicate; application 204.10 Witnesses.

forms; when bond of indemnity 204.11 Corporation as principal.
not required.

204.12 Unincorporated companies, socie204.4 Procedure where disbursing offi

ties, lodges, as principal.
cer who issued lost check is 204.13 Partnerships.
dead or no longer in the service 204.14 Assumed business title.
of the United States.

204.15 Joint ownership.
204.5 Recovery of original check. 204.16 Sureties.
204.6 Errors, erasures.

204.17 Sufficiency of sureties. 204.7 Penalty of bond.

204.18 Previous regulations superseded. Section 204.0 Requirements must be strictly observed. The regulations and instructions in this part governing the issue of duplicates of checks drawn by officers or agents of the United States are hereby established pursuant to section 3646 of the Revised Statutes of the United States, as amended by the Act approved July 8, 1937 (50 Stat. 482; 31 U.S.C., Sup., 528), known as the Government Losses in Shipment Act, and section 3647 of the Revised Statutes of the United States (31 U.S.C. 119), as amended. The requirements contained in this part must be strictly observed except as the Secretary of the Treasury, being satisfied that observance thereof is not necessary to carry out the purposes of the law and the regulations in this part, may waive or modify any such requirement.** [Introduction, Dept. Circ. 327, Oct. 16, 1937]

**88 204.0 to 204.18, inclusive, issued under the authority contained in R.S. 3646, sec. 9, 50 Stat. 482, R.S. 3647, 35 Stat. 644, sec. 304, 42 Stat. 24; 31 U.S.C. 528 and Sup., 31 U.S.C. 119.

204.1 Advice of nonreceipt or loss. In the event of the nonreceipt or loss of a check issued by an officer or agent of the United States, the owner, better to protect his interest, should immediately notify the Treasurer of the United States or other drawee, describing

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6 The following footnote appears on page one of Dept. Circ. 327: The word “duplicate” as used herein means a “substitute, marked duplicate” as provided in section 9 of the Government Losses in Shipment Act (50 Stat. 482; 31 U.S.C., Sup., 528).

°All forms mentioned in this part may be obtained from the Office of the Commissioner of Accounts and Deposits, U. S. Treasury Department, Washington, D. C.

**For statutory and source citations, see note to $ 203.1.

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the check, stating the name of the officer or agent of the United States by whom the check was drawn, giving, if possible, its date, number, and amount, and requesting that payment be stopped.

Upon receipt of such request, if the check is found to be outstanding, a form of affidavit, and in appropriate cases a bond of indemnity (Form No. 2244 or 2244a) will be prepared in the Treasurer's office and transmitted for execution by the claimant. The bond and affidavit, when duly executed according to instructions, must be transmitted to the officer or agent who issued the original check.**

tin 88 204.1 to 204.18, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Department Circular 327, Secretary of the Treasury, Oct. 16, 1937.

204.2 Affidavit of nonreceipt or loss. An affidavit in substantially the form prescribed, Form 2244, 2244a, 2244b, or 2244c, as the case may be, must be executed by the claimant and submitted to the officer or agent who drew the original check, with a bond of indemnity or application (Form 2244b or 2244c), giving the claimant's name and residence in full, describing the check, and all endorsements thereon, showing the claimant's interest therein and detailing the circumstances attending its nonreceipt or loss. The affidavit must be made and signed before a notary public or other officer authorized by law to administer oaths for general purposes, who must certify that he administered the oath. If executed in a foreign country, the affidavit must be made before a notary public or before a diplomatic or consular officer of the United States.

If a corporation or association, etc., is the claimant, an officer thereof must make and sign the affidavit individually, but on behalf of the corporation or association.

If a partnership is the claimant or if the check is owned jointly by two or more persons, all partners or joint owners must execute the affidavit.**

204.3 Issue of duplicate; application forms; when bond of indemnity not required. After the expiration of 30 days from the date of the original check, and before the close of the fiscal year following the fiscal year in which it was issued, the officer or agent will prepare a duplicate, which must be an exact transcript of the original, special care being taken that the number, date, and name of the payee correspond to those of the original. In the case of checks issued on account of public-debt obligations and transactions regarding the administration of banking and currency laws, duplicates may be issued without limitation of time. The officer or agent will then, without delay, forward the bond (Form 2244 or 2244a) or application (Form 2244b or 2244c), and the duplicate check to the Secretary of the Treasury (Division of Bookkeeping and Warrants). The bond or application and the information obtained shall be examined by the Division of Bookkeeping and Warrants, and if satisfactory, shall be approved and the duplicate check certified, by direction of the Secretary, by the Chief or the Assistant Chief, Division of Bookkeeping and Warrants. In the event the claimant is someone other than the payee of the original check, he should

.present clear and satisfactory evidence of his ownership to the Division

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*For statutory citation, see note to 8 204.0.

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