« PreviousContinue »
362. Duplicate checks.-When the legal holder of a check drawn on a local depository by a disbursing officer against individual moneys discovers its loss he should immediately notify the bank on which drawn of the loss, stating the name of the drawer and fully describing the check, and request that payment thereon be stopped.
363. Should he desire to procure a duplicate of the lost check, he should make affidavit of the facts connected with its loss to the best of his knowledge and belief, fully describing the check and its indorsements, if any, establishing his title thereto, and stating what action has been taken to stop payment on the lost check. The affidavit must be acknowledged before an officer authorized to administer oaths for general purposes.
364. The applicant for a duplicate will also be required to furnish an indemnity bond for double the amount of the lost check, unless (1) he is a disbursing officer of the United States, (2) he is specifically exempted therefrom by the Commissioner of Indian Affairs, or (3) the amount of the original check was not more than fifty dollars. The requisite form for this bond, which may be executed and secured by individual or corporate sureties, is printed on Form 5–266. If individual sureties are furnished they must make affidavit as required by the above form.
365. After drawing an exact duplicate of the lost check, the disbursing officer must forward the check, affidavit, and bond, when required, with his recommendations in the premises to the Indian Office for approval. In case the amount of the lost check was $50 or less, the disbursing officer must also ascertain from the bank whether the original check has been paid and, if not, satisfy himself that the check has actually been lost or destroyed and the applicant is the legal owner thereof, which facts must be stated in his letter of transmittal.
366. If the lost check was drawn by a disbursing officer who is dead or no longer in the service, the affidavit and bond, when required, should be submitted to the Indian Office. If the evidence of ownership and security offered are satisfactory, the office will instruct the depository to pay the amount in question to the applicant and to forward the original letter of instructions to the General Accounting Office in lieu of the missing check.
367. No duplicate of a lost check will be issued until thirty days after the date of the original check nor for any check which shall have remained outstanding and unpaid for a period of two · full fiscal years. In the latter case, the amount of the lost check must be taken up in the disbursing officer's accounts under “Outstanding liabilities.”
368. Paid checks.—Banks which are bonded depositories for individual moneys are required to furnish monthly statements of receipts and paid checks on Form 5-308 (and Form 5-308a, if extra space is needed). Paid checks will be listed thereon in numerical order, showing for each check its date, number, and amount. These statements will be prepared in triplicate for each disbursing officer having funds to his official credit. A duplicate copy will be forwarded to the disbursing officer in charge of the unit for reconciliation within ten days after the close of the month. The disbursing officer will make a prompt comparison with his records and after adjusting any errors found with the bank, the latter will immediately forward the original statement and paid checks directly to the General Accounting Office, audit division, Washington, D. C. The triplicate copy of the statement will be retained in the bank's files.
369. In no case will the depository send the paid checks to the disbursing officer nor should the statement and checks be sent to or routed through the Indian Office.
370. Statements will be required of both time and checking depositories so long as any balance of individual moneys remains on deposit and must be furnished for fractional parts of a month whenever a change of disbursing officers takes place or a new bond becomes effective before the end of a month.
371. Depositories should apply to disbursing officers for a supply of the necessary forms.
372. Checks on insolvent banks.-Whenever a local depository becomes insolvent all checks outstanding and unpaid through no lack of diligence on the part of the holders should be sub
mitted to the disbursing officer who issued the checks who will issue in lieu of the unpaid checks his official checks on a solvent depository, or the Treasurer of the United States.
373. Cross references as to the date and number and depository on which drawn must appear on both the unpaid and lieu checks and on the respective check registers. The unpaid checks should then be transmitted directly to the General Accounting Office audit division.
374. If any of the outstanding checks on a bank which becomes insolvent are not presented in the above manner, when payment is made by the surety company the entire amount received, inclusive of such outstanding checks will be deposited in a solvent depository to the official credit of the disbursing officer, but the amounts of such checks will be carried as outstanding until the expiration of two full fiscal years, when they will be accounted for as “Outstanding liabilities." This must be borne in mind in reconciling the cash and depository accounts of a disbursing officer.
375. In the case of a solvent bank which ceases to be a depository, the amounts of all outstanding checks after the expiration of 30 days must be withdrawn and handled in the manner described in the preceding paragraph; provided that after the balance is withdrawn the disbursing officer may issue a lieu check for any valid outstanding check presented and handle the transaction as if it were a check on an insolvent depository. This allowance of 30 days does not apply to cases where cancellation notice is served by sureties, in which event the entire deposit including outstanding checks and accrued interest, or so much thereof as is necessary to bring the deposit within remaining security, shall be withdrawn on the date specified in the notice from the Indian Office.
376. Photostatic copies of checks.-Requests for photostatic copies of checks drawn on local depositories must be sent direct to the Indian Office, accompanied by the complaint of nonreceipt or other alleged irregularity.
377. Inspecting officials may procure photostatic copies of checks concerning the negotiation of which they believe there has been some irregularity upon application to the Indian Office. A full description of such checks must accompany this request for photostatic copies and the necessity therefor must be clearly stated. SELECTION AND BONDING OF BANKS AS DEPOSITORIES FOR INDIAN MONEYS
378. Deposits of Indian funds shall be made only in designated banks and under the protection of either surety bonds which have been approved by the Secretary of the Interior or United States Government bonds or notes. (36 Stat. L., 856; act of May 25, 1918.)
379. When a disbursing officer expects to have any Indian moneys to deposit, he must issue timely invitations to all banks, both State and national, in reasonable proximity, to submit proposals of the rates of interest they will pay on open accounts and time deposits. Each applicant bank must furnish a report of condition (Form 5–303) and complete a form letter addressed to the Comptroller of the Currency or the State bank commissioner (Form 5-303b or 5-303c) authorizing him to furnish the Secretary of the Interior any information he may have at any time as to the financial condition of the bank. Superintendents will forward to the Commissioner of Indian Affairs the proposals received, with appropriate recommendations and reasons therefor.
380. Any bank desiring to qualify for deposits of Indian funds may, in the absence of a call for bids, transmit to the Commissioner of Indian Affairs an application accompanied by the forms mentioned in the preceding paragraph. In applying for designation, the bank must state the maximum amount desired, the minimum amount that will be accepted, the rate of interest it is willing to pay, and the type of security that will be furnished. The following statement must be incorporated in the letter of application: “This bank agrees that if designated a depositary it will comply with the regulations of the Interior Department governing the deposit of Indian funds in banks and with such instructions as may from time to time be issued by the Commissioner of Indian Affairs."
381. In the selection of a bank to serve as a depositary, the following points will be given consideration:
(a) Location with respect to the nearest agency.
6) Financial condition, security offered.
unless it has been in successiu
(c) Rate of interest and security offered.
382. No bank will be considered for designation unless it has been in successful operation for one year and has accumulated a surplus equal to 10 per cent of the capital stock. This will not apply to banks offering United States bonds or notes as security.
383. Each bank designated as a depositary must furnish either a surety bond (corporate or individual) or collateral security in the form of United States consols, Panama Canal loan bonds, Liberty loan bonds, Treasury bonds or Treasury notes. Penal bonds must be executed in triplicate, and each copy must be accompanied by a transcript of a resolution by the board of directors of the bank, authorizing the proper officers to execute the instrument. (Form 5-020 and 5-020a or 5-0206 and 5-020c.)
384. Bonds on which surety companies or individuals appear as sureties must be executed for a stipulated term of not less than 30 days. Such bonds are continuing in nature and will remain in force beyond the stipulated period until canceled in accordance with the provisions contained therein.
385. Only those companies holding certificates of authority from the Secretary of the Treasury to write bonds running to the United States are acceptable as sureties. Any company that executes a bond for an amount which exceeds the 10 per cent limit fixed by the Treasury Department shall furnish copies of any reinsurance agreements that it may have entered into for the purpose of distributing the risk.
386. Each person appearing as surety on a personal surety bond must qualify in an amount equal to twice the penalty of the bond. At least four individuals must act as sureties on each bond. Officers or directors of a bank furnishing a personal surety bond will not be accepted as sureties, nor will any person who is a bonded officer of the United States or a married woman.
387. Banks pledging United States bonds or notes as security shall furnish in addition to a penal bond and resolution of authority, a power of attorney authorizing the sale, assignment, or transfer of the collateral. The bonds or notes shall be either deposited with the Commissioner of Indian Affairs, who will place them with the Treasurer of the United States for safekeeping, or sent directly to the Division of Securities, Treasury Department, to be held subject to the order of the Commissioner of Indian Affairs. In either case receipt for the collateral will issue from the Indian Office. Registered bonds must be assigned, before shipment, either in blank or to the Secretary of the Interior; and a resolution by the board of directors of the bank authorizing the assignment must be filed with the Division of Loans and Currency, Treasury Department, on Treasury Department Form PD-1009 or PD-1010. All correspondence relating to the deposit, withdrawal, substitution, or exchange of securities shall be addressed to the Commissioner of Indian Affairs.
388. Officers must see that only exact corporate names of principals and sureties are used in bonds and accompanying papers. If erasures, alterations, or interlineations occur in bonds, or accompanying papers which have been signed under seal, a certificate signed under seal by both principal and surety must be furnished to the effect that the changes, so described that they may be absolutely identified and located according to the lines in which or between which they appear, were made with their knowledge and consent.
392. In transmitting a substitute bond to the Indian Office, the bond it is intended to supersede must be fully described. In order to simplify filing, two or more bonds should not be submitted with one letter, but a separate letter should be written for each bond.
390. Each bank that has been designated as a depositary, and has filed acceptable security will be given a deposit in an amount equal to 95 per cent of the security, unless it has been selected to carry an active checking account. Under no circumstances must a disbursing agent permit the balance (according to the bank's books) in his checking account to exceed 90 per cent of the security. Upon receipt of the deposit from the disbursing agent, the bank shall immediately credit it to an account which must be opened under his name and official title. The deposit shall be subject to check and if covered by a surety bond in which a 30-day cancellation clause is incorporated, payable upon demand. If, however, United States bonds or a surety bond containing a 45-day cancellation clause have been furnished as security, the bank, if a member of the Federal reserve system, may, upon securing the consent of the Commissioner of Indian Affairs, carry the deposit as a time deposit, subject to withdrawal by check on 30 days' notice. State banks which are not members of the Federal reserve system may also apply for permission to carry deposits in that manner if not prohibited by State laws or regulations of the State banking department.
391. As a rule, no bank which has furnished surety bonds as security will be permitted to receive deposits of Indian moneys in excess of its capital stock. The deposit carried by a bank, including accrued interest, must never exceed the aggregate security furnished. If it is found that for any reason the principal on deposit in a bank exceeds the limits prescribed in the preceding paragraph, the officer responsible must immediately write the Commissioner of Indian Affairs a letter of explanation, and transfer the surplus to qualified depositories or to his official account with the Treasurer of the United States.
392. Each bank which is a depository for Indian money is required to send to the Indian Office a report showing its condition on the first and third calls each year by the banking department, State or National, under which it is operating. Blanks for making these reports are furnished by the Indian Office (Form 5–303).
393. At any time the rates of interest, the financial condition, or any other important circumstance of a designated bank becomes unsatisfactory, new proposals shall be invited and appropriate changes made in the banks designated, but in the absence of very cogent reasons new proposals for the amount covered by a bond will not be effective before the expiration of the stipulated term of the bond. Superintendents will notify the Commissioner of Indian Affairs promptly when any changes are made by them in interest rates.
394. Every superintendent having deposits of Indian funds in bonded depositories must submit at the close of June 30 of each year, a report as of that date giving the following information:
(a) Name and location of bank.
(e) Total interest collected which was earned during the fiscal year covered by report. Superintendents must include in their reports all interest paid by banks which have relinquished deposits during the year.
395. In case a depository for Indian funds is declared insolvent and closed, the superintendent having a deposit therein will immediately submit a report to the Commissioner of Indian Affairs, giving the following information:
(a) Name and location of bank.
396. If the bank carries the agency checking account, the superintendent will arrange with one of his other depositories to handle such an account and notify the Indian Office when the arrangements have been completed.
397. Correspondence relating to the payment of deposits by sureties will be handled by the Indian Office except in cases involving moneys belonging to members of the Five Civilized Tribes. In the latter instances, the superintendent will take the necessary steps to collect the amounts due.
398. Each bank which carries a checking account must furnish within 5 days after the close of each month a statement of all the Indian money on deposit. Banks carrying time deposits must render a similar statement within 5 days after June 30, and December 31 of each year (Form 5-302).
399. Banks which have deposits of Indian money or deposits to the credit of disbursing agents of the Indian Service are required to render such statements and to give such information as properly accredited inspecting and administrative officers may request. No bank shall charge or receive any exchange or other fees or compensation on account of the cashing or collection of any checks or drafts or the performance of any other service for disbursing agents.
400. Whenever a bank receives notice from any source that its surety bond is to be canceled, it shall immediately arrange to submit substitute security, which must reach the Indian Office and be approved 10 days before the effective date of the cancellation notice. Any bank failing to furnish other security in accordance with the foregoing shall relinquish its deposit, with accrued interest, not later than 10 days preceding the effective date of the cancellation notice.
401. Deposits of Indian funds are placed with banks and must be accepted by them subject to these regulations and to the provisions of the penal bonds furnished as security therefor. No bank will issue certificates of deposit covering Indian funds, as the period for which the deposit will run is governed by the stipulated term of the bond. Superintendents and special disbursing agents must in no case accept certificates of deposit should they be issued.
402. All messages to the Indian Office on official Government business must be marked “Official business, Government day (or night) rate, collect” and will be paid as claims on bills submitted by the Washington offices of the telegraph companies. Impression copies of messages will be accepted as supporting subvouchers. Should such messages be improperly marked or sent and bills presented to disbursing officers by local telegraph agents, it will be the duty of the former to see that bills are properly certified and forwarded to the Indian Office with original signed messages as supporting subvouchers, for payment.
403. Official messages sent from a field office (except as provided in the preceding paragraph) which are properly chargeable to its jurisdiction must be marked “Official business, Government day (or night) rate, paid, charge -- ------,' giving name of office to which bill should be presented for payment. Such messages will be paid for by disbursing officers on bills presented to them by local telegraph agents and supported by the original messages.