§1832 Withdrawals by Negotiable or Transferable Instruments for Transfers to Third Parties

Summary

Banks and similar places that hold deposits may let an account owner use negotiable or transferable papers (like certain kinds of checks or drafts) to withdraw money and send it to other people. That rule only applies when the account money is entirely owned by one or more people or by a nonprofit-type group (religious, charitable, educational, political, or similar and not run for profit), or when the account holds public funds deposited by a government officer, employee, or agent. A "depository institution" here means an insured bank (bank with deposit insurance), a state-chartered bank, a mutual savings bank, a savings bank, an insured institution as defined by law, or a state-chartered building-and-loan or savings-and-loan association (states include U.S. territories). Any such institution that breaks this rule must pay a $1,000 fine for each violation.