§1832 Withdrawals by negotiable or transferable instruments for transfers to third parties

Summary

Banks and similar places may let an owner of an interest‑bearing account take money out by using checks or other papers that can be passed on to a third party. That permission only applies when the account’s money is owned entirely by one or more people or by a non‑profit organization run mainly for religious, charitable, educational, political, or similar purposes, and it also applies to public funds held by officers, employees, or agents of the United States, a State or local government, the District of Columbia, Puerto Rico, Guam, American Samoa, any U.S. territory or possession, or their political subdivisions. “Depository institution” here means insured banks, state banks, mutual savings banks, savings banks, insured institutions under federal law, and building‑and‑loan or savings‑and‑loan associations organized under state law (and “State” includes U.S. states, DC, and U.S. territories). If one of these institutions breaks the rule, it must pay a $1,000 fine for each violation.