§90 Depositaries of Public Moneys and Financial Agents of Government

Summary

The Treasury Secretary must pick some national banks to hold public money and can use them as the government’s financial agents. Those banks must follow the Secretary’s rules, do the reasonable tasks asked of them, and provide good security (for example, United States bonds and other kinds of protection) so the money is safe and can be paid out promptly. By January 1 each year the Secretary must say what kinds of security will be required that year. Banks chosen must accept national bank notes at face value when paid to the government for taxes, loans, or stock purchases. The Secretary should try to spread deposits fairly among the States and regions. State and local governments may put funds in national banks and the banks may give the same kind of security those banks would give for other state bank deposits. Federally recognized Indian tribes may deposit funds and banks may secure them with U.S. bonds or other methods the Secretary requires. The Secretary can pick banks as financial agents using any process the Secretary thinks right, even if some federal procurement rules don’t apply, except for sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711 of the cited laws. Financial agent duties can include running electronic benefit transfer services, including some state-run benefits if the State agrees.