§265 Insured Banks as Depositaries of Public Money; Duties; Security; Discrimination Between Banks Prohibited; Repeal of Inconsistent Laws

Summary

The Secretary of the Treasury must pick insured banks to hold and handle U.S. public money, like government revenues, funds under U.S. control, and Postal Savings money. The Secretary can put public money in those banks under rules the Secretary makes. Those banks can also act as the Government’s financial agents and must do reasonable duties required of them. The Secretary must get good security from those banks (for example, U.S. bonds or other safeguards) to protect public money and make sure it can be paid quickly, but no extra security is required for parts of the deposits that are insured. Each U.S. official who lawfully deposits public funds in an insured bank counts as a separate depositor for insurance purposes. No federal department or agency may make rules, contracts, or acts about public funds that favor or hurt one class of banks over another. Any laws that conflict with these rules are repealed. The words “insured bank” and “insured deposit” use the meanings in section 1813 of this title.