a properly authorized request showing the reason it is required.

INDORSEMENT OF CHECKS

§ 360.8 Indorsement by payees.

Checks

(a) General requirements. shall be indorsed by the payee or payees named, or by another on behalf of such payee or payees as set forth in this part. The forms of indorsement shall conform to those recognized by general principles of law and commercial usage for the negotiation, transfer, or collection of negotiable instruments.

(b) Indorsement of checks by a financial organization under the payee's authorization. When a check is credited by a financial organization to the payee's account under his authorization, the financial organization may use an indorsement substantially as follows:

Credit to the account of the within-named payee in accordance with payee's or payees' instructions. Absence of indorsement guaranteed.

XYZ

A financial organization using this form of indorsement shall be deemed to guarantee to all subsequent indorsers and to the Treasurer that it is acting as an attorney in fact for the payee or payees, under his or their, authorization.

(c) Indorsement of checks drawn in favor of financial organizations. All checks drawn in favor of financial organizations, for credit to the accounts of persons designating payment so to be made, shall be indorsed in the name of the financial organization as payee in the usual manner. Financial organizations receiving and indorsing such checks shall comply fully with Part 209 of this chapter.

(d) Social Security benefit checks issued jointly to individuals of the same family. A Social Security benefit check issued jointly to two or more individuals of the same family shall, upon the death of one of the joint payees prior to the negotiation of such check, be returned to the Social Security District Office or to the Treasury Disbursing Office. Payment of the check to the surviving payee or payees may be authorized by placing on the face of the check a stamped legend signed by an official of the Social Security Administration or the Treasury Disbursing Office, redesignating such survivor or survivors as the payee or payees of the check. A check bearing such stamped legend, signed as herein prescribed, may be indorsed and negotiated by the person

(a) Classes of checks which may be indorsed by guardian or fiduciary. Where the payee of a check of any class listed in § 360.10(a) has been declared incompetent:

(1) If the check is indorsed by a legal guardian or other fiduciary and presented for payment by a bank, it will be paid by the Treasurer without submission to the Treasurer of documentary proof of the authority of the guardian or other fiduciary.

(2) If a guardian has not been or will not be appointed, and if the check (1) was issued in payment of goods and services, tax refunds or redemption of currency, it shall be forwarded for advice to the Treasurer of the United States, Check Claims Division, Washington, D.C. 20226, or (ii) was issued in payment of principal or interest on U.S. securities, it shall be forwarded to the Bureau of the Public Debt, Division of Loans and Currency, Washington, D.C. 20226, with a full explanation of the circumstances.

(b) Classes of checks which may not be indorsed by guardian or fiduciary. Where the payee of a check of any other class has been declared incompetent, the check shall not be indorsed by a guardian or other fiduciary. The check shall be returned to the Government agency for which issued with information as to the incompetency of the payee and submission of documentary evidence showing the appointment of the guardian or other explanation in order that a replacement check, and others to be issued subsequently, may be drawn in favor of the guardian.

§ 360.10 Checks issued to

payees.

deceased

(a) Classes of checks which may be indorsed by an executor or administrator. Checks issued for the following classes of payments, the right to which under law does not terminate with the death of the payee, will, when indorsed by an executor or administrator and presented for payment by a bank, be paid by the Treasurer

without the submission of documentary proof of the authority of the executor or administrator:

(1) Payments for the redemption of currencies or for principal or interest on U.S. securities.

(2) Payments for tax refunds.

(3) Payments for goods and services. If an executor or administrator has not been appointed, persons claiming as owners shall return the checks for appropriate handling to the Government agency for which issued. If there is doubt as to whether the proceeds of the check or checks pass to the estate of the deceased payee, the checks shall be handled in accordance with paragraph (b) of this section.

(b) Classes of checks which may not be indorsed by an executor or administrator. Checks issued for classes of payment other than those specified in paragraph (a) of this section may not be negotiated after the death of the payee but must be returned to the Government agency for which issued for determination whether, under applicable laws, payment is due and to whom it may be made. § 360.11 Checks issued to minor payees

in certain cases.

Checks issued to minors in payment of principal or interest on U.S. securities may be indorsed by either parent with whom the minor resides, or, if the minor does not reside with either parent, by the person who furnishes his chief support. The parent or other person indorsing in behalf of the minor shall present with the check his signed statement giving the minor's age, stating that the payee either resides with the parent or receives his chief support from the person indorsing in his behalf, and that the proceeds of the checks will be used for the minor's benefit.

(2) Payments for tax refunds.

(3) Payments for goods and services. (c) Special powers of attorney. Under decisions of the Comptroller General of the United States, classes of checks other than those specified in paragraph (b) of this section may be negotiated under a special power of attorney which names a financial organization as attorney in fact, is limited to a period not exceeding 12 months, and recites 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.

(d) Proof of authority. Checks indorsed by an attorney in fact and presented for payment by a bank, will be paid by the Treasurer without the submission to him of documentary proof of the authority of the attorney in fact.

(e) Revocation of powers of attorney. Powers of attorney are revoked by the death of the grantor and may also be revoked by notice from the grantor to the parties known, or reasonably expected, to be acting on the power of attorney. Notice of revocation to the Treasurer will not ordinarily serve to revoke the power.

(f) Acknowledgment of powers of attorney. Powers of attorney shail be acknowledged before a notary public or other officer authorized by law to administer oaths generally. In foreign countries, the acknowledgment shall be made before a U.S. diplomatic or consular representative. If such a representative is not available, the acknowledgment shall be made before a notary or other officer authorized to administer oaths, but his official character and jurisdiction must be certified by a U.S. diplomatic or consular officer, under the seal of his office. Persons subject to military jurisdiction may acknowledge powers of attorney before officers specially designated for that purpose pursuant to law or regulations. See 10 U.S.C. 936.

(g) Seal or certificate of attesting officer. Seals of attesting officers shall be impressed upon the power of attorney form, or the power of attorney shall be accompanied by a certificate from an appropriate official showing that the officer was in commission on the date of acknowledgment. In either case, the date of expiration of the attesting officer's commission shall be indicated.

(h) Forms. Power of attorney forms issued under this part are listed in the appendix to this part. They may be ob

tained from the Superintendent of Documents, Government Printing Office, Washington, D.C. 20401.

[Dept. Circ. 21, 2nd Rev., 32 F.R. 14217, Oct. 13, 1967, as amended at 35 F.R. 6707, Apr. 28, 1970]

APPENDIX-STANDARD FORMS FOR POWER OF

ATTORNEY AND THEIR APPLICATION

Standard Form 231. A general power of attorney on this form may be executed by an individual, firm, or sole owner, for checks drawn on the Treasurer of the United States, in payment (1) for redemption of currencies or for principal or interest on U.S. securities, (2) for tax refunds, and (3) for goods and services.

Standard Form 232. A specific power of attorney on this form, which must be executed after the issuance of the check, describing the check in full, may be used to authorize the indorsement of any class of check drawn on the Treasurer.

Standard Form 233. A special power of attorney on this form naming a financial organization as attorney in fact, limited to a period not to exceed 12 months and reciting that it is not given to carry into effect an assignment of the right to receive the payment, either to the attorney in fact or to any other person, may be used for classes of payments other than those shown under Standard Form 231.

Standard Form 234-5. A general power of attorney may be executed by a corporation for the classes of payment listed under Standard Form 231.

Standard Form 236-7. A specific power of attorney may be executed on this form by a corporation to cover a specific check for any class of payment.

[Dept. Circ. 21, 2nd Rev., 32 F.R. 14217, Oct. 13, 1967, as amended at 35 F.R. 6708, Apr. 28, 1970]

This part, governing the issuance of substitutes of checks drawn on the Treasurer of the United States, other than those drawn by officers or employees of the Post Office Department, is prescribed pursuant to the provisions of section 3646 of the Revised Statutes of 1873, as amended (31 U.S.C. 528), and of Treasury Department Order No. 177-16, dated December 18, 1957, 22 F.R. 10761, and shall be effective immediately.

§ 365.2 Advice of nonreceipt or loss.

(a) In the event of the nonreceipt, loss, or destruction of a check drawn on the Treasurer of the United States, or the mutilation or defacement of such a check to an extent which renders it nonnegotiable, the owner, better to protect his interest, should immediately notify the drawer, describing the check, stating the purpose for which it was issued, giving, if possible, its date, number and amount, and requesting that payment be stopped. If the name or address of the drawer is not known the request for stoppage of payment should be sent to the Treasurer of the United States, stating the purpose for which the check was issued, the name of the department or agency authorizing the payment and if possible, the date, number and amount of the check. In cases involving mutilated or defaced checks, the owner should enclose the mutilated or defaced check with his communication to the drawer or Treasurer.

(b) Upon receipt of advice from an owner as to the nonreceipt, loss, destruction, multilation, or defacement of a check, the drawer will, if appropriate, transmit the owner's letter (together with the mutilated or defaced check in cases involving such checks) to the Treasurer of the United States, Washington, D.C., 20220, or other bank through which the check is payable, as the case may be, together with a request by the drawer for stoppage of payment which includes a certification as to the

accuracy of the check description and that it was properly issued.

(c) If the check, which is the basis of the owner's claim, is determined to be outstanding, the Treasurer's Office will furnish the claimant an appropriate application form for obtaining a substitute check. However, the execution of an application will not be required in the event the original written statement submitted by the claimant substantially meets the requirements of the prescribed application form.

§ 365.3 Request for substitute check; requirements for undertaking of indemnity; execution of applications in foreign countries.

(a) An undertaking of indemnity on Form 2244 or Form 2244b in penal sum equal to the amount of the check or, in an appropriate case, an application, on Form 2244a, or an application substantially containing the same information as Form 2244a, must be executed by the claimant, as may be required by the Treasurer of the United States, and subImitted to the Treasurer of the United States, Washington, D.C. 20220.

(b) Unless the Treasurer of the United States deems that an undertaking of indemnity is essential in the public interest, no undertaking of indemnity shall be required in the following classes of

cases:

(1) If the Treasurer of the United States is satisfied that the loss, theft, destruction, mutilation, or defacement occurred without fault of the owner or holder and while the check was in the custody or control of the United States or of a person duly authorized as an agent of the United States, including the Postal Service when carrying mail for an officer, employee, agent, or agency of the United States when performing services in connection with an official function of the United States, but not including the Postal Service when otherwise acting solely in its capacity as a public carrier of the mail, or while it was in the course of shipment effected pursuant to and in accordance with regulations issued under the provisions of the Government Losses in Shipment Act, as amended;

(2) If substantially the entire check is presented and surrendered by the owner or holder and the Treasurer of the United States is satisfied as to the

identity of the check presented and that any missing portions are not sufficient to form the basis of a valid claim against the United States;

(3) If the Treasurer of the United States is satisfied that the original check is not negotiable and cannot be made the basis of a valid claim against the United States;

(4) If the amount of the check is not more than $200.00 and the check has not been endorsed by the payee;

(5) If the owner or holder is the United States or an officer or employee thereof in his official capacity, a State, the District of Columbia, a territory or possession of the United States, a municipal corporation or political subdivision of any of the foregoing, a corporation the entire capital of which is owned by the United States, a foreign government, or a Federal Reserve Bank.

(c) An application executed in a foreign country other than by an officer or an employee of the United States or a member of the Armed Forces of the United States, shall be sworn to before (1) a diplomatic or consular officer of the United States, or (2) an officer of the United States Army, Navy, Air Force, Marine Corps, or Coast Guard, or (3) an official of such foreign country authorized by law to administer oaths generally, and such foreign official shall affix his official seal, if any, and a diplomatic or consular officer of the United States shall certify that the foreign official who administered the oath was duly authorized under the laws of such foreign country so to act.

§ 365.4 Issuance of substitute check.

Upon approval of the undertaking of indemnity, application or statement of claim by the Treasurer of the United States and upon certification of that fact to the Chief Disbursing Officer of the United States, the Chief Disbursing Officer or his designee shall issue to the claimant a substitute check showing such information as may be necessary to identify the original check.

§ 365.5 Receipt or recovery of original check.

(a) If the original check is received or recovered by the owner after he has requested the drawer or the Treasurer of the United States to stop payment on the original check but before a substitute check has been received, he should im

§ 365.8

Delegation of authority to Secretary of Defense to issue substitute checks.

The Secretary of Defense is authorized to provide by regulations for the issuance of substitutes of checks drawn for pay and allowances of civilian employees and active duty military personnel which are lost, stolen, or destroyed:

(a) In shipment between military offices or installations,

(b) In the mail when addressed by military disbursing officers directly to employees, service members or dependents of service members, or

(c) In the mail when addressed by military disbursing officers to designated financial organizations for credit to accounts of employees, service members or dependents of service members.

Claims requiring settlement action.
Inquiries.

368.9 Amendments and waivers.

AUTHORITY: The provisions of this Part 368 issued under R.S. 3646, as amended; 31 U.S.C. 528.

SOURCE: The provisions of this Part 368 contained in 1960 Department Circular 1055, 25 F.R. 10869, Nov. 16, 1960, unless otherwise noted.

§ 368.1

Introductory.

This part, prescribed pursuant to the provisions of section 3646 of the Revised Statutes, as amended (31 U.S.C. 528), governs the issuance of substitutes of checks of the United States drawn on United States dollar or foreign currency accounts, other than those drawn by offcers or employees of the Post Office Department, maintained with designated depositaries in foreign countries or territories or possessions of the United States, including the Panama Canal Zone. Checks of the United States drawn on such depositaries are hereinafter referred to as "depositary checks".

DELEGATION OF AUTHORITY

§ 368.2 Delegation of authority to issue substitute checks.

Pursuant to authority contained in section 3646 of the Revised Statutes, as