§ 67.814 Theft or loss of certificates.

(a) If blank postal savings certificates are stolen or lost, the supervisor shall immediately notify the Director of Posts by telephone, and confirm by written report, giving the first and last serial numbers of the stolen or lost certificates, also stating the date on which the theft occurred or the loss was detected.

(b) Blank postal savings certificates recovered after having been reported as stolen or lost shall not be used. A report of the facts shall be submitted to the Director of Posts and the certificates held pending the receipt of instructions regarding their disposition.

ACCOUNTS

§ 67.831 Eligibility for certificates.

(a) General eligibility. Postal savings certificates may be issued only to:

(1) Residents. Bona fide residents of the Canal Zone, and not transients or persons having only transient residence in the Canal Zone.

(2) Government and agency personnel. Citizens of the United States of America residing in the Republic of Panama who are officers or employees in the regular, full-time service or employ of the United States Government, the Panama Canal Company or Canal Zone Government, and dependent members of their families residing with them.

(3) Armed forces personnel. Members of the armed forces of the United States on extended active duty who reside or sojourn in the Republic of Panama during the performance of their service with the United States of America, and dependent members of their families residing with them. This paragraph does not include members of reserve forces on temporary active duty or retired armed forces personnel.

(4) Public administrator. The Public Administrator for the Canal Zone, who may deposit funds from estates which are solely under his jurisdiction.

(b) Age of depositor. Postal savings certificates may not be issued to a person under 10 years of age.

(c) Exceptions. Persons who, on the effective date of this subpart, have deposits in postal savings accounts, but are not eligible to make further deposits, may leave such funds on deposit and may withdraw them at any time. In such cases, new or additional deposits shall not be permitted and certificates issued in lieu of those held on the effective date

(a) For all deposits. Patrons shall present completed Form 1294, "Application for Postal Savings Certificate." Postal employees may not prepare application forms for depositors.

(b) Joint deposits. Postal savings certificates may be made payable to husband and wife jointly. Other joint deposits are not authorized. The original application for a joint account shall be accompanied by a "Joint Depositor's Agreement," Form 1254. This agreement shall be signed by both husband and wife, and witnesses to signatures, before the certificates are issued. The agreement shall be filed with the open joint accounts.

(c) Representative or agent of depositor. Applications for postal savings certificates may be accepted from a representative or agent of a depositor, if the depositor first files Form 2105, "Authority for Accepting Postal Savings Deposits from Representative," indicating that deposits are to be made to his account by other persons. In such cases:

(1) The name of the representatives or agents need not be specified, and it is desirable, but not required, that the depositor complete the application form in his own handwriting.

(2) The post office accepts no responsibility for delivery of the certificate to the depositor by his agent, or the latter's failure to purchase certificate.

CROSS REFERENCE: Filing of stubs of joint deposit certificates, see § 67.834(b). § 67.833

Issuance of certificates.

(a) Amount. Postal savings certificates shall be issued only in even denominations of $5.00 or multiples thereof up to $1,000.00. The smallest possible number of certificates shall be issued on account of a single deposit. There is no limit to the amount a depositor may have on deposit in his postal savings account.

(b) Evidence of deposits. Nontransferable and non-negotiable certificates will be issued as evidence of deposits, payable to depositor only at offices of issue at no charge to the depositor. Certificates will be delivered to the depositors when issued, and, after issue, postmasters and other postal employees may not accept them for safekeeping.

(c) Procedure for issuance. Postal savings certificates shall be issued in the following manner:

(1) The application, Form 1294, shall be examined to ascertain whether all the necessary particulars appear therein and are legibly written.

(2) The impression of the office dating stamp, the serial number of the certificate or certificates issued, and the initials of the issuing clerk, shall be entered on the application.

(3) The name or names of the depositors shall be written with pen and black or blue-black ink or a post office ball point pen, except that the name of the depositor may be inserted with rubber stamp on the certificate and stub. Pencil or typewriter shall not be used. Utmost care shall be exercised to write the name of the depositor clearly and correctly.

(4) A clear impression of the office dating stamp, showing the post office and date, shall be placed in the space marked "Date of Issue" on the original certificate, stub and copy. All dating stamps MUST be the actual date of issue. Failure to make a clear impression of the dating stamp may result in embarrassment and unnecessary work when an order is presented for payment.

(5) The amount deposited shall be imprinted on the certificate and stub and punched in the certificate, stub and copy by use of the print-punch machine.

(6) A certificate shall be made payable to only one person, except a joint account.

(7) A certificate must be made payable to a complete name, i.e., "John Doe", "J. E. Doe", etc., and not by surname only. Applications requesting certificate payable to husband and wife jointly shall show the names of both such persons, i.e., "John or Mary Doe" and NOT "Mr. and Mrs. John Doe" on the certificate.

(8) The employee who actually issues the certificate must affix his initials on the certificate, stub and copy.

(9) After all particulars have been entered on the certificate and stub, the certificate should be detached from the stub and given to the depositor. The stub and copy are post office and accounting records.

(10) If there is no print-punch machine at the office of issue or the machine is out of order, postal savings certificates should be written as shown in examples

(a) A postal savings certificate, when issued, shall be delivered to the depositor or his representative or agent.

(b) The stub shall be filed alphabetically by the last name of the depositor and in numerical sequence in a separate file until paid. Stubs or joint deposit certificates shall be filed separately under the names of depositors with the "Joint Depositor's Agreement".

(c) The copy shall be forwarded to Postal Accounts with a daily report of postal savings certificates issued.

(d) Postal savings certificates that are defective by misprint or mutilation, or spoiled when issued, shall be treated as follows:

(1) Stamp or write boldly "Not Issued" or "Spoiled" across the face of the certificate, stub and copy. Detach the stub from the certificate and place it in proper sequence with other paid stubs.

(2) Submit "Not Issued" or "Spoiled" postal savings certificates and copy with the daily report of postal savings certificates issued.

§ 67.835 Care and protection of records.

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All unpaid stubs and any current postal savings statements, records, or files relating to unpaid accounts shall placed in a vault or safe regularly at the close of business each day. All such records shall be placed in vaults and safes during alerts or disaster periods. The Postmaster or Branch Superintendent shall give this matter his personal attention and shall be held accountable for the proper protection of the records. § 67.836 Interest.

(a) Rate. Postal savings certificates, for which no fee shall be charged, shall bear simple interest at the rate of onehalf of one percentum for each period of three full calendar months from the date of issue.

(b) Interest period-(1) "Three full months". In computing interest, the term "three full months" shall be considered as follows:

(1) If a certificate is issued on the last day of the month, interest is due and payable on the last day of the month, regardless of the number of days in such month, except that:

(a) If the last day of the month falls on a Sunday or holiday, interest is not payable until the first day of the following month.

(b) If the certificate is issued February 28, interest is due and payable May 28, August 28, etc.

Interest on certificates issued August 31, therefore, would be due and payable November 30, February 28, and May 31.

(ii) If a certificate is issued other than on the last day of the month, interest is due and payable three months from the actual date of issue.

(a) If issued January 15, interest is due April 15.

(b) If issued February 1, interest is due May 1, etc.

(iii) When the computation of interest results in fraction of a cent, the fraction shall be dropped.

(c) When paid. Interest shall be paid only when the certificate is paid.

(d) This section applies to all outstanding deposit money orders and postal savings certificates issued prior to the effective date of this subpart.

(2 C.Z.C. § 1134, 76A Stat. 39; § 113.3 (a) (3) of this chapter.)

§ 67.837 Payment of postal savings certificates.

(a) On demand at office of issue only. Postal savings certificates shall be payable on demand at the office of issue only to the depositor. In the case of a joint account, the certificates shall be payable to the signature of either of the depositors or the survivor. To terminate a joint account, all orders payable to the two persons jointly must be presented and cashed.

(b) Service charge—(1) Amount and when made. If withdrawal is made within one month from the date of issue shown on the certificate, a service charge of 20 cents shall be made for each certificate regardless of the denomination.

(2) When and how collected. The service charge shall be collected at the time the certificate is paid, either by deducting the amount from the princi

pal due the depositor or by collection from the depositor.

(3) Evidence of payment. To evidence payment of the service charge, an ordinary 20-cent postage stamp, or equivalent, shall be affixed securely to each certificate on the back of the certificate.

(4) Use of paid stamp. The "Paid" date stamp shall be affixed so as to imprint on both the stamp or stamps and the certificate, thereby canceling both in one operation.

(c) In person. The certificate shall be paid to the depositor only at the office of issue on proper identification and payment may be made by cash, money order, or check.

(d) By mail—(1) Requisites. Withdrawals may be made by mail, if the certificates are properly signed by the depositor and forwarded to the Postmaster at the office of issue, and if the Postmaster is satisfied as to the identity of the depositor.

(2) Manner of payment. Payment shall be made by check or money order, which shall be sent by registered mail. Before mailing the payment, any money order and registry fees, and postage, shall be deducted.

(e) Payment by check-(1) Request. Except as provided by subparagraph (2) of this paragraph, when funds have been on deposit three months or longer and the depositor making a withdrawal from his postal savings account desires a check in lieu of cash, request shall be made to the Director of Posts on Form 015. The name, or names if a joint account, shall be shown on Form 015 identical to the name or names appearing on the postal savings certificate.

(2) Exception. A check valid only for local payment may be furnished a depositor at his request, when funds have not been on deposit three months or longer and the amount of money involved is $2,000 or more. On these requests, the Postmaster shall enter "Check For Local Payment Only".

(g) Payment of certificates of deceased depositors—(1) Payment to representative. After the death of a depositor, certificates in his or her favor shall be paid to the duly authorized executor or administrator of the estate or other person only upon the authority of the Director of Posts. When it is known that a depositor has died, the stubs should be "flagged" and held to the credit of the deceased depositor.

(2) Survivor of joint depositors. After the death of either of two joint depositors, when a "Joint Depositor's Agreement" has been completed, the certificates remaining unpaid become the sole property of the survivor and may be paid to the survivor without the authority of the Director of Posts.

(h) Payment of certificates to incompetent depositors. In cases of mental disability or other legal incompetence of a depositor, contact the Director of Posts for instructions.

(i) Identification. The person presenting a postal savings certificate must identify himself before payment is made. Section 67.722(e) covering payment of money orders, shall govern in the payment of postal savings certificates. § 67.838 General procedures for pay

ment of postal savings certificates. (a) Examination of the certificate(1) Comparison with stub. When a postal savings certificate is presented for payment, the paying employee shall examine the certificate and compare it with all particulars on the post office stub to ascertain if the certificate is valid for payment at the office where presented, and if the certificate is in order.

(2) IBM Check Card. Each post office and branch will be furnished with an "IBM Check Card" for use in verifying the amount for which the postal savings certificates were issued. Oblong holes are punched in the certificate, columns 1 through 9, to record the serial number and four round holes are punched in the certificate, columns 40, 42, 44, 46, to record the amount for which the certificate has been issued. Column 38 will always record an "0" (Zero) amount. By placing the certificate over the "IBM Check Card" the amount for which issued and printed at the top of the certificate can readily be verified. If more than one hole is punched in any one of the money columns, or more than 5 holes punched in all the money columns, payment should be refused, the certificate forwarded to

the Director of Posts for handling with memorandum giving full details, including name and identity of person presenting the certificate for payment.

(3) Verification by IBM Check Card. Verification of the amount by "IBM Check Card" and comparison with original application should be made when there is doubt as to the amount for which the certificate was issued, or where particulars do not agree with those on the post office stub. The card may be used to verify serial numbers when necessary.

(b) Signatures. The certificate shall be signed by the depositor on the back in the presence of the paying employee who shall verify all particulars entered thereon. When in doubt, a signature should be verified with that which appears on the corresponding application, joint account card or the representative of depositor's card (Form 2105). The person presenting the certificate must identify himself before payment is made. If a certificate is paid to the wrong person through lack of precaution, the paying postal employee will be held accountable for the amount of the certificate.

(c) Interest Due-(1) Notation of interest. When a certificate is paid, the total amount of interest due shall be shown in red ink in the "Interest" block of the certificate and stub of the postal savings certificate. When no interest is paid, a straight line in red ink shall be drawn across the "Interest" blocks. Once the amount of interest is written on the certificate, no change or alteration shall be permitted.

(2) Errors (i) Underpayment of interest. If an underpayment of interest has been made after figures have been entered in the interest block on a certificate, paying employees shall obtain a receipt in duplicate from the depositor when the additional mount is paid to him. The original receipt shall be sent to Postal Accounts with the daily report of paid postal savings certificates in support of credit taken. The duplicate shall be attached to the stub and retained in the office files. Even though an error of this nature is discovered before report of paid certificates is sent to Postal Accounts, the amount of interest shown on the certificate shall be reported. A footnote calling attention to the error may be placed on the report. The amount of unpaid interest shall not be set aside for the depositor pending his response to a notice to call, and credit shall not be

taken until the short payment has actually been made to the depositor. Form 02 shall be used as the receipt form.

(ii) Overpayment of interest. If overpayment is made and discovered before the statement of paid certificate is sent to the Postal Accountant, the Postal Accountant shall be advised by completion of Form 02, to be prepared in duplicate. The original shall accompany the statement and the duplicate shall be attached to the stub of the postal savings certificate and retained in the office files. Correction shall not be made on the certificate itself, but the correct amount of interest shall be shown on the statement.

(d) Date of payment. A clear impression of the office dating stamp shall be placed in proper space on back of the certificate and on the back of the corresponding office stub. The date affixed by the paying employee shall be the actual day of payment.

(e) Initialing paid certificates. The paying employee's initials shall be inserted on the back of the original certificates and on the back of the corresponding office stub at time of payment, near the impression of the office dating stamp.

(f) Application for duplicate as precluding payment. The original postal savings certificate shall NOT be paid under any circumstances after an application for duplicate postal savings certificate has been applied for by the depositor.

(g) Filing paid stubs. The stubs of paid certificates shall be filed in numerical sequence in a file covering the calendar year in which paid.

regarding

(h) Final determination payment. Final determination as to whether payment has been properly made on postal savings certificates or other evidences of deposit in the postal savings system of the Canal Zone Postal Service, including duplicates, shall be based upon the official records of the Canal Zone Postal Service.

CROSS REFERENCES: Date of payment stamp when service charge collected, see § 67.837 (b).

Rate of interest, see § 67.836.

§ 67.839 Privacy of accounts.

Postmasters and postal employees shall not disclose the name of any postal savings depositor nor give information concerning a particular account to any person other than the depositor himself, without specific authority from the Director of Posts.

§ 67.840 Claims.

(a) Dispute as to ownership or claim by another person. When there is any dispute as to the ownership, or when a claim by a person other than the depositor is made for payment, of a postal savings certificate, the Postmaster or Branch Superintendent shall withhold payment of withdrawals from the account involved pending instructions from the Director of Posts.

(b) Limitations on claims. All claims for payment of any postal savings certificate, or other evidence of deposit in the postal savings system of the Canal Zone Postal Service, including duplicates, which certificate or evidence of deposit, including duplicates, are shown by the records of the Canal Zone Postal Service to have been duly paid, shall be barred if not presented to the Canal Zone Postal Service within 6 years from the date on which such records show that they were paid.

§ 67.841 Disposal of paid postal savings certificates.

Postal savings certificates or other evidences of deposit in the postal savings system of the Canal Zone Postal Service, including duplicates, may be disposed of after the expiration of 6 years from date payment thereon has been made as shown by the records of the Canal Zone Postal Service.

DUPLICATE POSTAL SAVINGS CERTIFICATES § 67.861 Replacement of certificates.

A postal savings certificate that is lost, stolen, destroyed or improperly withheld, shall be replaced without charge by the Postal Service. Duplicate postal savings certificate shall be issued only by the office of the Director of Posts. § 67.862 Application for replacement.

(a) When notified by a depositor that his certificate or certificates have been lost, stolen, destroyed or improperly withheld, the Postmaster or his designated employee may accept an application for duplicate on Form 1266, specially endorsed or stamped to distinguish it from applications for a duplicate money order. After certification by the issuing post office or branch, Form 1266 will be forwarded to the Director of Posts for handling.

(b) Application for duplicate postal savings certificate payable to husband and wife, "Joint Depositor's Agreement”,