§90 Depositaries of public moneys and financial agents of Government

Summary

The Secretary of the Treasury chooses national banks to hold government money and to act as the Government’s financial agents. Those banks must follow the Secretary’s rules and do reasonable tasks the Government asks. They must give good security, like U.S. bonds, to protect the money and to promise they will pay it when needed. The Secretary must say publicly, on or before the 1st of January of each year, what securities will be required that year. Banks chosen must take national bank notes at face value when paid into the Government for taxes, loans, or stock purchases. The Secretary should try to spread deposits fairly among the different States and regions. A national bank may accept deposits from a State, local government, or their officials and secure those funds the same way state law allows for other banks in that State. A national bank may also accept deposits from a federally recognized Indian tribe and secure them with U.S. bonds or other measures the Secretary requires for public funds. The Secretary may pick financial agent banks by whatever process he thinks is appropriate, even if that departs from many federal procurement rules, and those banks’ duties can include running electronic benefit transfer services (including State-run benefits if the State agrees).