§90 — Title 12 Banks and Banking | U.S. Code

Summary

The Secretary of the Treasury must choose national banks to hold public money and set the rules they must follow. Those banks can also serve as the Government’s financial agents and must do the required duties. The Secretary must make them give good security, like U.S. bonds, to keep deposits safe and to ensure prompt payment. By January 1 each year, the Secretary must say what security will be required that year. Chosen banks must accept national currency at face value when it is paid into the Government for taxes, loans, or stock purchases. The Secretary should try to spread deposits fairly among the states and regions. When a state or local government deposits money, a national bank may give the same kind of security state law allows for other banks. For federally recognized Indian tribes, banks may use U.S. bonds and other rules the Secretary sets. Even if some procurement rules would normally apply (chapters 1–11 of Title 40 and division C of subtitle I of Title 41, except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711), the Secretary may pick banks as financial agents by any process the Secretary thinks appropriate. Those duties can include providing electronic benefit transfer services, including State-run benefits if the State agrees.

Title 12, §90

Banks and Banking — Source: USLM XML via OLRC

All national banking associations, designated for that purpose by the Secretary of the Treasury, shall be depositaries of public money, under such regulations as may be prescribed by the Secretary; and they may also be employed as financial agents of the Government; and they shall perform all such reasonable duties, as depositaries of public money and financial agents of the Government, as may be required of them. The Secretary of the Treasury shall require the associations thus designated to give satisfactory security, by the deposit of United States bonds and otherwise, for the safe-keeping and prompt payment of the public money deposited with them, and for the faithful performance of their duties as financial agents of the Government: Provided, That the Secretary shall, on or before the 1st of January of each year, make a public statement of the securities required during that year for such deposits. And every association so designated as receiver or depositary of the public money shall take and receive at par all of the national currency bills, by whatever association issued, which have been paid into the Government for internal revenue, or for loans or stocks: Provided, That the Secretary of the Treasury shall distribute the deposits herein provided for, as far as practicable, equitably between the different States and sections. Any national banking association may, upon the deposit with it of any funds by any State or political subdivision thereof or any agency or other governmental instrumentality of one or more States or political subdivisions thereof, including any officer, employee, or agent thereof in his official capacity, give security for the safekeeping and prompt payment of the funds so deposited to the same extent and of the same kind as is authorized by the law of the State in which such association is located in the case of other banking institutions in the State. Any national banking association may, upon the deposit with it of any funds by any federally recognized Indian tribe, or any officer, employee, or agent thereof in his or her official capacity, give security for the safekeeping and prompt payment of the funds so deposited by the deposit of United States bonds and otherwise as may be prescribed by the Secretary of the Treasury for public funds under the first paragraph of this section. Notwithstanding chapters 1 to 11 of title 40 and division C (except section 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41, the Secretary may select associations as financial agents in accordance with any process the Secretary deems appropriate and their reasonable duties may include the provision of electronic benefit transfer services (including State-administered benefits with the consent of the States), as defined by the Secretary.

Notes & Related Subsidiaries

Editorial Notes

Codification In text, “chapters 1 to 11 of title 40 and division C (except section 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41” substituted for “the Federal Property and Administrative Services Act of 1949, as amended” on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, which Act enacted Title 40, Public Buildings, Property, and Works, and Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts. R.S. § 5153 derived from act June 3, 1864, ch. 106, § 45, 13 Stat. 113, which was the National Bank Act. See section 38 of this title.

Amendments

1996—Pub. L. 104–208 added fourth par. 1979—Pub. L. 96–153 added third par. 1950—Act Aug. 18, 1950, permitted national banks to accept and give security for deposits of funds made by agencies or governmental instrumentalities or States or political subdivisions thereof and by their officers, employees or agents. 1930—Act June 25, 1930, added second par.

§90 Depositaries of Public Moneys and Financial Agents of Government

Summary

Title 12, §90

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata