256.1 Judgments against the United States. 256.2 Payment of sums appropriated in private relief acts.

AUTHORITY: The provisions of this Part 256 issued under 5 U.S.C. 301, 552.

§ 256.1 Judgments against the United States.

(a) Persons securing money judgments against the United States, in excess of $100,000 in any one case, in the Court of Claims are required, in order to secure payment, to file original transcripts of such judgments with the Secretary of the Treasury for certification to the Congress for appropriation. Following receipt of an application on the part of the claimant for payment of the amount appropriated by the Congress, the General Accounting Office transmits a certificate of settlement to the Treasury Department. Payment is then made to the claimant by check drawn in the Treasury Department by the Division of Disbursement. A similar procedure applies with respect to such judgments obtained in the Federal district courts,

except that papers pertaining to such judgments are filed with the Secretary of the Treasury by the Department of Justice instead of by the claimant.

(b) A procedure similar to that outlined in paragraph (a) of this section is followed with respect to judgments not in excess of $100,000 in any one case except that the necessary documents are filed with the General Accounting Office and no action is taken by the Treasury Department prior to the receipt of a certificate of settlement from the General Accounting Office. After receipt of a certificate of settlement a check payable from a permanent appropriation established for the payment of such judgments is drawn in the Treasury Department by the Division of Disbursement and mailed to the claimant in accordance with the terms of the certificate of settlement.

[23 F.R. 10184, Dec. 24, 1958. Redesignated, 32 F.R. 9562, July 1, 1967]

§ 256.2 Payment of sums appropriated in private relief acts.

Persons entitled to payment of sums appropriated in private relief acts should make application for payment to the Treasury Department, Bureau of Accounts, Washington, D.C. 20226. Upon receipt of an application, bearing the signature and mailing address of the beneficiary, the Treasury Department will effect payment.

[29 F.R. 13164, Sept. 23, 1964. Redesignated, 32 F.R. 9562, July 1, 1967]

(a) General requirements. (1) Applicants for payment of System accounts shall make application on Form No. 315 to the Investments Branch, Bureau of Accounts, U.S. Treasury Department, Washington, D.C. 20226.1 No application for less than the total amount of any account and of the interest accrued thereon will be honored. All the System certificates issued to the original depositor, signed by the applicant, and the supporting evidence as specified in paragraphs (b), (c), (d), or (e) of this section, or as determined necessary by the Secretary, shall accompany an application for payment. If all the certificates are not available, Form No. 607 signed by the applicant shall be submitted. If duplicate certificates have been issued and paid, original certificates will not be accepted as a basis for payment.

(2) Where the forms mentioned in this part provide for certification by a postmaster, notarization of the applicant's signature shall be substituted; however, on Form No. 315 the applicant's signature alone shall suffice. Where forms provide for notarization of the applicant's signature, such notarization shall be required.

(b) By the depositor. Form No. 315 shall be signed by a depositor exactly as his name appears on his System certificates. If the name of the original depositor has changed, he shall sign his changed name and submit a signed explanatory statement. A signature by mark (X) must be witnessed by two persons, whose signature and address must appear.

(c) By the legal representative of a living depositor-(1) Powers of attorney. When a depositor has appointed an at

1 The forms mentioned in this part were prepared and used by the Post Office Department. They are hereafter available from the Investments Branch and from local post offices where System accounts were held until their supplies of forms are exhausted.

torney in fact, payment will be made to the depositor in care of that attorney upon submission of (i) a copy of the power of attorney executed in accord with the law of the residence of the depositor, and (ii) an affidavit from the attorney that his power has not been revoked as of the date of application by the depositor's death or other means. Form No. 315 and the System certificates shall be signed so as to indicate the attorney's capacity.

(2) Incompetency. When the depositor is incompetent, payment will be made to his guardian, committee, or other equivalent legal representative. Principal amounts of $50 or less will be paid, with accrued interest, to the person handling the affairs of an incompetent upon submission of either a certificate of the clerk of the appointing court, dated within 6 months of the date of the application for payment, showing that such appointment is in full force and effect, or a notarized statement showing (1) his relationship to the incompetent depositor; (ii) the name and address of the person having care and custody of the incompetent depositor; (iii) that any money received will be applied to the use and benefit of the incompetent and (iv) that there was no appointment of a guardian or committee. For payment of principal amounts of more than $50, the law of the residence of the depositor will determine whether the legal representative must be court-appointed. If court-appointment is required, the legal representative must submit a certificate of the clerk of the appointing court, dated within 6 months of the date of the application for payment, showing that his appointment is in full force and effect. Form No. 315 and the System certificates shall be signed so as to indicate clearly the capacity of the legal representative of the living depositor.

(d) By the legal representative of a deceased depositor. (1) When the depositor is deceased, payment will be made to the legal representative of his estate. The term legal representative shall include court-appointed or statutory administrators or executors, and successors in interest of the depositor, e.g., his legatees or heirs as determined by an appropriate court or by the law of the residence of the depositor. Principal amounts of $50 or less will be paid, with accrued interest, to a legal representative upon completion

and submission of Form No. 1681. For payment of principal amounts of more than $50: (i) If administration of the deceased depositor's estate is closed, the legal representative shall submit a copy of the appropriate court's final order of distribution or other pertinent order, identifying the distributees and their addresses; (ii) if administration continues and the legal representative is court-appointed, he shall submit a certificate of the clerk of the appointing court, dated within 6 months of the date of the application for payment, showing that such appointment is in full force and effect; (iii) if the legal representative is not court-appointed he shall submit, along with a completed Form No. 1680, evidence sufficient to prove his interest and authority to apply for payment. If that evidence is a copy of the decedent's will, it shall show on its face or by attachments thereto that it has been offered for probate, and that the appropriate court has affixed its seal and attached its certification of authenticity that the will is in fact the decedent's last will and testament. Form Nos. 315, 1680, or 1681 and the System certificates shall be signed so as to indicate clearly the capacity of the legal representative of the deceased depositor.

(2) A release by a legal representative on Form No. 134 in favor of any other person will be recognized. A release by a court-appointed legal representative shall be approved by the appointing court. A release shall constitute a waiver of any distributive share due the releasor and of any reimbursement claim he has for expenses incurred in connection with the depositor's last illness or death.

(e) By the creditors of a deceased depositor. (1) Claims against the estate of a deceased depositor by preferred creditors will be accepted on Form No. 1672. Preferred creditors may include undertakers, cemeteries, doctors and hospitals; their status and rights are determined by the law of the state of residence of the deceased depositor. Claims by preferred creditors must be supported by (1) itemized bills, unreceipted if none of the claim has been paid, or receipted to the extent of the payment on the claim, and (ii) Form No. 1690 certifying the correctness of the claim and Form No. 1680 applying for any remaining balance of the deceased depositor's account, including interest due, completed by a legal

representative mentioned in paragraph (d) (1).

(2) Claims against the estate of a deceased depositor for reimbursement by a person who has paid a preferred creditor of that depositor will be accepted on Form No. 1680 supported by itemized bills receipted in his favor to the extent of his payment thereon.

(3) Form Nos. 1672, 1680, and 1690 may be revised to state the kind of preferred claim presented.

(f) Criminal sanctions applicable, Fines, penalties and forfeitures are imposed for the making of any false or fraudulent claim for the payment of System deposits. 18 U.S.C. 1001, 1691, and 31 U.S.C. 231.

§ 257.4 Interest.

(a) Termination dates. Interest on System accounts ceased to accrue on the anniversary dates of System certificates, which occurred between April 27, 1966, and April 26, 1967.

(b) Limitation to one account. If a depositor opened more than one System account, contrary to 39 U.S.C. 5210, interest will be paid only on the one account containing the larger amount, but in no event for a principal amount exceeding $2,500. Action to reclaim interest paid on more than one account will be taken as necessary.

PART 260-SHIPMENT OF VALUABLES PURSUANT TO THE GOVERNMENT LOSSES IN SHIPMENT ACT

NOTE: The Secretary of the Treasury has ordered that any shipment of gold and silver coin or bullion to, from, between, or within foreign countries under the provisions of the Gold Reserve Act of 1934, as amended (48 Stat. 337; 31 U.S.C. 440-446), and the Silver Purchase Act of 1934 (48 Stat. 1178; 31 U.S.C. 448-448e) is excepted from the prohibitions contained in the first sentence of section 4 of the Government Losses in Shipment Act (50 Stat. 480; 5 U.S.C. 134c) if, and to the extent that, adequate insurance at satisfactory rates can, in the opinion of the Secretary of the Treasury, be obtained to cover such shipment. The Secretary of the Treasury may at any time supplement, amend, or revoke this order. [Amended Order, Sept. 20, 1938; 3 F.R. 2281, Sept. 22, 1938]

After the effective date of the regulations in this part (August 15, 1937), shipments of valuables shall be made (a) in the same manner and at such time as those of the same class or kind were made, when insured, immediately preceding the effective date of the regulations in this part, or (b) in such other manner and at such other time consonant with the greatest possible protection against risk of loss and destruction of and damage to such valuables as the respective heads of the various executive departments, independent establishments, agencies and whollyowned corporations of the United States may from time to time direct, after notice to the Secretary of the Treasury. [Dept. Circ. 576, 2 F.R. 1475, July 17, 1937, as amended at 13 F.R. 9497, Dec. 31, 1948] § 260.4

Right to amend.

The Secretary of the Treasury and the Postmaster General, with the approval of the President may, at any time, or from time to time, revoke or amend the regulations in this part or prescribe and issue supplemental or amendatory rules and regulations pursuant to section 1 of the said Government Losses in Shipment Act.

The regulations in this part are prescribed pursuant to section 6 of the Government Losses in Shipment Act, 50 Stat. 479, as amended Aug. 10, 1935, 53 Stat. 1358, approved July 8, 1937, referred to in this part as the "act." All terms used in this part shall have the same meaning as when used in said act, unless otherwise indicated.

§ 261.1 General instructions.

To facilitate the reporting of loss or destruction of, or damage to valuables and submission of proofs of claim for relief, under the provisions of section 3 of the act, in the event of loss or destruction of, or damage to valuables shipped pursuant to the regulations prescribed under section 1 of said act, executive departments, independent establishments, agencies, wholly owned corporations, officers, employees, Federal Reserve banks when acting on behalf of the United States or agencies thereof, and others concerned, hereinafter sometimes referred to as "consignors," should observe strictly the following requirements, except as the Secretary of the Treasury, being satisfied that observance thereof is not necessary to carry out the purposes of the act and of the regulations in this part, may waive or modify any such requirement. Failure on the part of any consignor or agent or employee thereof to

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comply with these requirements may retard recoveries and may under the circumstances preclude reimbursement from the fund or other relief under the act, and render the consignor responsible for any loss occurring through such negligence.

[Supp. 1, 2 F.R. 1715, Aug. 24, 1937]

§ 261.2 Method of shipment.

All shipments shall be made in accordance with the terms of Treasury Department Circular No. 576-Post Office Department Circular No. Reg. 1, dated July 16, 1937 (Part 260 of this subchapter), and such amendments and supplements thereto as may, from time to time, be promulgated.

§ 261.3 Preparation of shipment.

Each shipment must be inspected and verified by two responsible employees before final preparation for delivery to the carrier (to wit, before sealing, locking, etc.) and must be finally prepared for such delivery in their presence and before leaving their immediate control. In the case of any class of shipments with respect to which it is not possible or practicable to comply strictly with the foregoing requirement, it shall be the duty of administrative officers to make adequate provision, through the establishment of accounting controls, or otherwise, for the maintenance of basic records from which they will be in a position to prove to the satisfaction of the Secretary of the Treasury the exact extent of loss, destruction or damage, in the event that claim for replacement out of the fund, or otherwise, shall be made. The foregoing requirements will apply irrespective of the carrier or method of transportation employed in making ship

ments.

§ 261.4 Record of shipment.

(a) A permanent record of each shipment must be maintained by the consignor which record must include: (1) The name and address of the consignee; (2) a complete description of the contents (if the shipment comprises securities, the record must be maintained by issue, series, denomination and serial number, and a description of the coupons, if any, attached to such securities at the time of shipment); (3) face or par value of shipment in the case of securities, currency, etc., or replacement value in the case of other valuables; (4) the registry number or the lock and rotary numbers,

if any, under which shipped; (5) the number of the registry receipt or other receipt of carrier; (6) the date and hour of delivery to the carrier; (7) a record of the signatures of the employees who verified the contents of the package and witnessed sealing; (8) a record of the signatures of the employee or employees who thereafter had custody thereof, until delivered at the post office or registration or deposited with the post office or other carrier for shipment; and (9) the name of the carrier.

(b) In addition the consignor must preserve for a reasonable time all registry receipts or other carriers' receipts, and such other documents as may be incidental to the shipments.

§ 261.5 Advice of shipment.

(a) In the event the value of any one shipment to one consignee at one time, by one consignor, except in the case of an intracity shipment, equals or exceeds $10,000, immediate notice thereof must be forwarded by the consignor to the consignee by separate mail. There should be included in such notice: (1) A complete record of the contents of the shipment; (2) the method of transportation employed and the name of the carrier; (3) the date of delivery to such carrier.

(b) The consignee should be requested to arrange: (1) That the shipment, when received, be opened and inspected by one or more responsible employees of the consignee; (2) that immediate advice of any difference between the amounts or quantity indicated in such notice and in the shipment when opened be forwarded to the consignor; (3) that the consignor and the post office, or office of other carrier through which delivery would be made, be notified immediately in the event of the failure of the shipment to arrive in due course; (4) that consignor be advised immediately concerning any damage to the shipment; and (5) that all findings of the consignee in such cases be made a matter of record which may be subject to the call or inspection of the Secretary of the Treasury or other duly authorized Government officer in connection with any investigation which may be necessary in connection therewith.

§ 261.7 Report of loss, destruction, or damage.

(a) As soon as it shall come to the attention of the consignor that loss or destruction of, or damage to valuables shipped in accordance with the act has