Laws: Cases and Codes : U.S. Code : Title 12 : Section 265


   
U.S. Code as of: 01/19/04
Section 265. Insured banks as depositaries of public money; duties; security; discrimination between banks prohibited; repeal of inconsistent laws

      All insured banks designated for that purpose by the Secretary of
    the Treasury shall be depositaries of public money of the United
    States (including, without being limited to, revenues and funds of
    the United States, and any funds the deposit of which is subject to
    the control or regulation of the United States or any of its
    officers, agents, or employees, and Postal Savings funds), and the
    Secretary is authorized to deposit public money in such
    depositaries, 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 of the insured banks thus designated satisfactory security
    by the deposit of United States bonds or otherwise, for the
    safekeeping and prompt payment of public money deposited with them
    and for the faithful performance of their duties as financial
    agents of the Government: Provided, That no such security shall be
    required for the safekeeping and prompt payment of such parts of
    the deposits of the public money in such banks as are insured
    deposits and each officer, employee, or agent of the United States
    having official custody of public funds and lawfully depositing the
    same in an insured bank shall, for the purpose of determining the
    amount of the insured deposits, be deemed a depositor in such
    custodial capacity separate and distinct from any other officer,
    employee, or agent of the United States having official custody of
    public funds and lawfully depositing the same in the same insured
    bank in custodial capacity. Notwithstanding any other provision of
    law, no department, board, agency, instrumentality, officer,
    employee, or agent of the United States shall issue or permit to
    continue in effect any regulations, rulings, or instructions or
    enter into or approve any contracts or perform any other acts
    having to do with the deposit, disbursement, or expenditure of
    public funds, or the deposit, custody, or advance of funds subject
    to the control of the United States as trustee or otherwise which
    shall discriminate against or prefer national banking associations,
    State banks members of the Federal Reserve System, or insured banks
    not members of the Federal Reserve System, by class, or which shall
    require those enjoying the benefits, directly or indirectly, of
    disbursed public funds so to discriminate. All Acts or parts
    thereof in conflict herewith are repealed. The terms "insured bank"
    and "insured deposit" as used in this section shall be construed
    according to the definitions of such terms in section 1813 of this
    title.



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