delivery to the same extent as return receipts for registered mail. (Added Pub. L. 87-646, § 16(a), Sept. 7, 1962, 76 Stat. 446.)

EFFECTIVE DATE

Section effective on Nov. 1, 1962, see section 23(a) of Pub. L. 87-646, set out as a note under section 1 of this title.

PRIOR PROVISIONS

Receipt of return receipts for the delivery of certified mail as prima facie evidence of delivery to the same extent as return receipts for registered mail was authorized by Pub. L. 86-507, § 2, June 11, 1960, 74 Stat. 202, which was repealed by section 23 (b) of Pub. L. 87-646.

CONTINUATION OF ORDERS, RULES, AND REGULATIONS Orders, rules, and regulations in effect under provisions of law superseded or amended by Pub. L. 87-646, to remain in effect, to the extent they would have been authorized under Pub. L. 87-646, until specifically repealed, amended, or revised, see section 22 of Pub. L. 87-646, set out as a note under section 1 of this title.

§ 5101. Money order system.

To promote public convenience, and insure greater security in remitting funds through the mail, the Postmaster General may maintain a money order system. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 681.) HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 711 (R.S. 4027). This section covers the authority contained in section 711 of title 39, to establish a money order system. The word "uniform" is omitted as unnecessary. Establishment at "all suitable post offices" is covered by the language of section 5102 of this title. Reference to the issuance of rules and regulations is omitted in view of the provisions of section 501 of this title.

§ 5102. Issuance of money orders.

(a) The Postmaster General shall cause money orders to be issued at such post offices, including stations and branches, as he designates.

(b) The Postmaster General may not permit a money order to be issued under this chapter for more than $100.

(c) A money order is not valid unless drawn upon a form furnished by the Postmaster General.

(d) The Postmaster General may not permit money orders to be issued on the condition that identification of the payee, indorsee, or attorney may be waived, nor permit payment to be made of a money order so issued. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 681.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.SC, 1952 ed, §§ 711, 713, 716a, 720, 724 (R.S. 4027, 4029, 4034; Jan. 27, 1894, ch. 21, § 9, 28 Stat. 33; Mar. 1, 1899, ch. 327, § 5, 30 Stat. 966; July 3, 1948, ch. 830, title II, § 206, 62 Stat. 1264).

Subsection (a) covers that part of section 711 of title 39, U.S.C., which authorizes the establishment of a money order system at "all suitable post offices". It also covers that part of the first sentence of section 713, title 39, which deals with the issuance of money orders. That part of section 713 dealing with the accountability of postmasters is covered by section 2209 of this title. That part of section 713 relating to the places at which money orders are payable is covered by section 5103 of this title. Reference to postmasters' authority to permit his assist

ants to issue money orders is deleted in view of Reorganization Plan 3 of 1949.

Subsection (b) is based on section 716a of title 39. Reference to money order fees is omitted for the reason that the Postmaster General is authorized under section 507 of this title to fix the fees for the issuance of money orders.

The Subsection (c) is based on section 720, title 39. remainder of the section which authorizes the Postmaster General to prescribe the forms is omitted as unnecessary in view of the provisions of section 501 of this title.

Subsection (d) is based on section 724 of title 39.
Changes are made in phraseology.

§ 5103. Payment of money orders.

(a) The Postmaster General shall provide for the payment of money orders to the payee, indorsee, or remitter at offices at which money orders are issued.

(b) When a money order has been lost the Postmaster General, upon evidence satisfactory to him, may pay the face value thereof or issue a duplicate money order, without charge, to the person he determines is entitled thereto.

(c) The records of the Department shall serve as the basis for adjudicating claims for payment of money orders.

(d) The Postmaster General may not pay a money order after twenty years from the last day of the month of original issue. Claims for unpaid money orders are forever barred unless received by the Department within that period. (Pub. L. 86682, Sept. 2, 1960, 74 Stat. 681.)

HISTORICAL AND REVISION NOTES Based on title 39, U.S.C., 1952 ed., §§ 713, 723, 727, 728, 728a, 729 (R.S. 4029, 4037, 4039, 4040; Feb. 18, 1875, ch. 80, § 1, 18 Stat. 320; Jan. 27, 1874, ch. 21, §§ 6, 11, 28 Stat. 32, 33; Feb. 6, 1914, ch. 15, 38 Stat. 280; June 16, 1934, ch. 550, 48 Stat. 973; June 8, 1955, ch. 134, § 2, 69 Stat. 87).

Sections 713, 723, 727 and 728 of title 39, contain provisions with respect to the payment of money orders. For example, sections 713 and 727 permit the Postmaster General to provide for payment at any money order office; section 723 permits the payment of money orders to an indorsee; section 728 authorizes repayment of the face amount of the money order to the purchaser. The total effect of these sections is that the Postmaster General shall provide for the payment of money orders, to the payee, indorsee or remitter. Upon payment to any one of the three the fees charged for the issuance of the money order are earned. Subsection (a) of this section, therefore, covers the obvious purpose and intent of the cited sections.

Subsection (b) is based on section 729 of title 39. While this latter section is largely superseded by section 728a of title 39, Reorganization Plan No. 3 of 1949, and the Post Office Department Financial Control Act of 1950, the provisions for paying or replacing lost money orders to the person rightfully entitled thereto are retained. The distinction between money orders under one year of age or over one year of age, however, is omitted in view of section 728a of title 39. Reference to the General Accounting Office is omitted in view of the Post Office Department Financial Control Act.

Subsection (c) is based on the last sentence of section

728a.

Subsection (d) is based on the first and second sentences of section 728a. The third sentence of section 728a is covered by section 2202 of this title. Changes are made in phraseology.

§ 5104. Indorsement of orders.

The payee of a money order, by his written indorsement thereon, may direct it to be paid to any other person who shall be entitled to payment upon

furnishing such proof as the Postmaster General requires that the indorsement is genuine, and that he is the person named therein. More than one indorsement renders an order invalid. The holder of such an order, if otherwise entitled thereto, may obtain payment under such application and proof of the genuineness of the indorsements as the Postmaster General requires. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 681.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 723 (R.S. 4037; Feb. 18, 1875, ch. 80, § 1, 18 Stat. 320).

This section is revised to conform to authority contained in section 5103 of this title under which money orders may be paid at any money order post office, although drawn on a specified office.

For purposes of clarification the words "are not payable" are deleted. Orders bearing more than one indorsement are invalid but may be payable upon written application to the Postmaster General.

Changes are made in phraseology.

§ 5105. Postal notes.

authorize

(a) The Postmaster General may postmasters at offices designated by him to issue and pay money orders not exceeding $10, to be known as postal notes.

(b) Postal notes are valid for two calendar months from the last day of the month of their issue, but thereafter the Postmaster General may pay them or make refund in case of loss, upon evidence satisfactory to him. The Postmaster General may not consider a claim filed later than one year from the last day of the month of issue of the postal note unless the original postal note is presented with the claim and a duplicate postal note has not been issued therefor. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 681.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 738a (July 3, 1948, ch. 830, title II, § 207, 62 Stat. 1264; Apr. 28, 1950, ch. 121, § 1, 64 Stat. 91).

The last sentence of subsection (a) of § 738a, title 39; US.C., is omitted in view of general authority of Postmaster General to fix money-order fees contained in section 507 of this title.

Changes are made in phraseology.

§ 5201. Faith of United States pledged to payment of deposits.

The faith of the United States is solemnly pledged to the payment of the deposits made in postal savings depository offices, with accrued interest thereon as provided in this chapter. (Pub. L. 86–682, Sept. 2, 1960, 74 Stat. 682.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 766 (June 25, 1910, ch. 386, § 16, 36 Stat. 819). Changes are made in phraseology.

§ 5202. Definitions.

As used in this chapter "bank" means a bank, including savings banks and trust companies doing a banking business, which is subject to national or state supervision and examination. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 682.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 759 (June 25, 1910, ch. 386, § 9, 36 Stat. 816; Aug. 24, 1912, ch. 387, § 1, 37 Stat. 512; May 18, 1916, ch. 126, § 2, 39 Stat. 159; May 17, 1932, ch. 190, 47 Stat. 158; June 16, 1933, ch. 89, § 11(d), 48 Stat. 182).

This section covers the last sentence of section 759 of title 39, and that portion of the first sentence which defines the banks in which postal savings funds may be deposited. The word "solvent" is omitted as unnecessary. Reference to banks being members of the Federal Reserve System is also omitted as unnecessary. The remainder of section 759 is covered in this chapter as follows: Section 5203 covers the last clause of the first sentence; section 5214 that part of the first sentence relating to a cash reserve; section 5215 the third, fourth, and fifth sentence relating to apportionment of funds available for deposit; section 5216 the second sentence relating to the pledging of securities by banks; section 5217 that portion of the first sentence relating to interest to be paid by banks; section 5218 the eighth and ninth sentences relating to investments in obligations of the United States; section 5219 the seventh and thirteenth sentences relating to the source of funds to pay depositors; section 5221 the eleventh sentence relating to the disposition of income of the postal savings system. The sixth and twelfth sentences are omitted as surplusage, and the tenth sentence is omitted as obsolete. The authority to issue bonds mentioned in that sentence terminated on July 1, 1935, and the last such bonds matured on July 1, 1955.

Changes are made in phraseology.

§ 5203. Establishment of system.

(a) The Board of Trustees of the Postal Savings System, consisting of the Postmaster General and the Secretary of the Treasury, except as otherwise provided in this chapter, shall control, supervise and administer the Postal Savings System.

(b) The Secretary of the Treasury shall designate an officer or employee of the Department of the Treasury as Treasurer of the Board of Trustees. The Secretary of the Treasury may employ personnel and expend sums for contingent and miscellaneous items necessary to transact the business of the Postal Savings System in the office of the Treasurer of the Board of Trustees, utilizing therefor money advanced to the Secretary of the Treasury out of any available appropriation for the establishment, maintenance, and extension of postal savings depositories. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 682.)

HISTORICAL AND REVISION NOTES Based on title 39, U.S.C., 1952 ed., §§ 751, 759, 769 (June 25, 1910, ch. 386, §§ 1, 9, 36 Stat. 814, 816; Aug. 23, 1912, ch. 350, § 1, 37 Stat. 377; Aug. 24, 1912, ch. 387, § 17, 37

Stat. 512; Aug. 24, 1912, ch. 389, § 10, 37 Stat. 559; Sept. 23, 1914, ch. 308, 38 Stat. 716; May 18, 1916, ch. 126, § 2, 39 Stat. 159; May 17, 1916, ch. 190, 47 Stat. 158; July 16, 1933, ch. 89, § 11(d), 48 Stat. 182; Sept. 12, 1950, ch. 946, title III, § 301(103), 64 Stat. 844; 1950 Reorg. Plan No. 26, §§ 1, 2; Aug. 14, 1958, Pub. L. 85-634, 72 Stat. 589).

This section, with minor changes in phraseology, covers the first sentence and the first half of the second sentence of section 751. The remainder of the second sentence is covered by section 5204, the balance of section 751 is covered by section 5205.

The first sentence of subsection (b) is based on the final clause of the first sentence of section 759 of title 39, as modified by Reorganization Plan No. 26 of 1950, which transferred functions of the Treasurer of the United States to the Secretary of the Treasury with power of delegation. See note to section 5202 for distribution of the provisions of section 759. The second sentence of subsection (b) covers the provisions of section 769 of title 39, with changes to conform to Reorganization Plan 26 of 1950.

§ 5204. Regulations of Board of Trustees.

Except as otherwise provided in this chapter, the Board of Trustees may make regulations for the receipt, transmittal, custody, deposit, investment and repayment of the funds deposited at postal savings depository offices. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 682.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 751 (June 25, 1910, ch. 386, § 1, 36 Stat. 814; Aug. 24, 1912, ch. 289, § 10, 37 Stat. 559; Sept. 23, 1914, ch. 308, 38 Stat. 716).

This section covers the last half of the second sentence of section 751. The balance of section 751 is covered by sections 5203 and 5205 of this title.

The words "Except as otherwise provided" refer to powers given to the Postmaster General by section 768 of title 39, which is covered by sections 5206 and 5208 of this title. The phrase • all necessary and proper regulations" is shortened.

Changes are made in phraseology.

§ 5205. Annual report of Board of Trustees. The Board of Trustees shall submit a report to Congress at the beginning of each regular session showing by States, Territories, the District of Columbia and the Commonwealth of Puerto Rico, for the preceding fiscal year

(1) the number and names of post offices receiving deposits;

(2) the aggregate amount of deposits made therein;

(3) the aggregate amount of withdrawals therefrom;

(4) the number of depositors;

(5) the total amount standing to the credit of all depositors at the conclusion of the year; (6) the amount of deposits at interest; (7) the amount of interest received thereon; (8) the amount of interest paid thereon; (9) the number and amount of unclaimed deposits;

(10) the amount invested in Government securities by the Board of Trustees;

(11) the expense of the Department and postal service incident to the operation of the postal savings depository system; and

(12) other facts deemed pertinent and proper. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 682.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 751 (June 25, 1910, ch. 386, § 1, 36 Stat. 814; Aug. 24, 1912, ch. 389, § 10, 37 Stat. 559; Sept. 23, 1914, ch. 308, 38 Stat. 716).

This section covers the provisions of the second paragraph of section 751, title 39. The first paragraph is covered by sections 5203 and 5204 of this title. Changes are made in phraseology.

§ 5206. Depository offices.

The Postmaster General shall designate post offices which are to be postal savings depository offices and shall prescribe the hours during which they shall remain open. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 683.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 753, 768 (June 25, 1910, ch. 386, § 3, 36 Stat. 815, 816; Aug. 24, 1912, ch. 389, § 10, 37 Stat. 559).

Section 753 and that part of section 768 dealing with designation of postal savings depository offices are covered by this section.

The last sentence of section 768 is covered by section 5208 of this title. The provisions in section 768 relating to appointment of officers and employees are omitted as superseded by laws establishing compensation of employees.

Changes are made in phraseology.

§ 5207. Opening of accounts.

Upon receipt of an application to open a postal savings account, and the tender of an initial deposit, the postal savings depository office shall deliver to the depositor evidence of the deposit free of cost. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 683.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 755 (June 25, 1910, ch. 386, § 5, 36 Stat. 815; Aug. 24, 1912, ch. 389, § 10, 37 Stat. 559).

This section covers the matter preceding the proviso in section 755. The proviso is covered by section 5208. The section was shortened without change of meaning or intent.

§ 5208. Deposits and withdrawals.

The Postmaster General shall prescribe regulations with respect to deposits in and withdrawals from postal savings accounts, and shall provide for the issuance of pass books or other devices as evidence of deposits and withdrawals. (Pub. L. 86682, Sept. 2, 1960, 74 Stat. 683.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 775, 768 (June 25, 1910, ch. 386, § 5, 36 Stat. 815; Aug. 24, 1912, ch. 389, § 10, 37 Stat. 559).

This section covers the proviso in section 755 and the last sentence of section 768 of title 39. The balance of section 755 is covered by section 5207 and the balance of section 768 is covered by section 5206. Changes are made in phraseology.

§ 5209. Claims on paid postal savings certificates. (a) Claims for payment of a postal savings certificate, or other evidence of deposit in the postal savings depository system, including duplicates, which are shown by the records of the Department to have been duly paid, are barred if not presented to the Postmaster General within six years from the date on which the records show that they were paid.

(b) Final determination by the Postmaster General as to whether payment properly has been made on postal savings certificates or other evidences of deposit in the postal savings depository system, including duplicates, shall be based upon the official records of the Department. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 683.)

HISTORICAL AND REVISION NOTES Based on title 39, U.S.C., 1952 ed., § 770 (July 14, 1954, ch. 476, § 1, 68 Stat. 470). Changes are made in phraseology.

§ 5210. Depositors.

A person ten years of age or over, in his own name, and a married woman in her own name and free from control or interference by her husband, may open and maintain one postal savings account at a time. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 683.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 754 (June 25, 1910, ch. 386, § 4, 36 Stat. 815). Changes are made in phraseology.

§ 5211. Amount of deposits.

A depositor may make deposits in amounts of $5 or multiples thereof. Interest is not payable on any balance in excess of $2,500, exclusive of accumulated interest. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 683.) HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 756 (June 25, 1910, ch. 386, § 6, 36 Stat. 815; May 18, 1916, ch. 126, § 1, 39 Stat. 159; July 2, 1918, ch. 117, §§ 12, 13, 40 Stat. 754; July 26, 1939, ch. 371, 53 Stat. 1121; Aug. 1, 1956, ch. 844, 70 Stat. 897).

This section covers the first sentence of section 756 of title 39, with the exception of the clause relating to noninterest-paying deposits. That clause is covered in section 5213 of this title. The remainder of section 756 was superseded by section 756a of title 39, which is covered by section 5223 of this title.

Other laws not covered here require Attorney General to deposit in Postal Savings System cash received from aliens as bond against their becoming public charges (sec. 1183 of title 8); and permit deposit of bankrupt funds without limit (sec. 101a of title 11). See also title 46, U.S.C., section 599 (b).

§ 5212. Privacy of accounts.

Persons connected with the Department may not disclose the amount of a deposit to any person other than the depositor, unless directed to do so by the Postmaster General. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 683.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed, § 762 (June 25, 1910, ch. 386, § 12, 36 Stat. 818).

This section covers the matter following the semicolon in the first sentence of section 762.

The remainder of section 762 is omitted. Bonds of officers and employees cover postal savings funds. It is no longer necessary to keep funds separate in view of Financial Control Act of 1950. See part II this revision. Changes are made in phraseology.

§ 5213. Interest on deposits.

(a) The Postmaster General shall pay depositors interest on savings accounts at the rate of 2 per centum per year, but not in excess of the rate permitted to be paid on savings deposits by regulations prescribed by the Board of Governors of the Federal Reserve System, pursuant to section 371b of title 12, by member banks of the System located nearest to the place where the depository office in which the deposit was made.

(b) The Postmaster General shall compute interest on deposits under such regulations as the Board of Trustees prescribes, and shall enter it to the credit of the depositor once for each quarter, beginning with the first day of the month following the

date of the deposit. on any part of funds deposited for a period of less than three months or on fractions of a dollar. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 683.)

He may not allow interest

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 756, 757, 758 (June 25, 1910, ch. 386, §§ 6, 7 and 8, 36 Stat. 815, 816; Aug. 24, 1912, ch. 389, § 10, 37 Stat. 559; May 18, 1916, ch. 126, § 1, 39 Stat. 159; July 2, 1918, ch. 117, §§ 12, 13, 40 Stat. 754; June 16, 1933, ch. 89, § 11(c), 48 Stat. 182; Aug. 23, 1935, ch. 614, § 341, 49 Stat. 721; July 26, 1939, ch. 371, 53 Stat. 1121).

This section consolidates the provisions of section 757 of title 39, with the provision in section 758, relating to the rate of interest on depositors' accounts contained in items (1) and (2) of the first sentence. The prohibition in section 756 of title 39, against the acceptance of non-interest-paying deposits is covered by the broad language of subsection (a).

Item (3) of the first sentence of section 758 relating to interest on funds deposited in banks is covered by section 5217; the second sentence of section 758 relating to withdrawals is covered by section 5219 and the last sentence relating to bank charges by section 5220. Changes are made in phraseology.

§ 5214. Cash reserve.

The Treasurer of the Board of Trustees shall maintain five percent of all postal savings funds in a cash reserve. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 684.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 759 (Aug. 24, 1912, ch. 387, § 1, 37 Stat. 512; June 25, 1910, ch. 386, § 9, 36 Stat. 816; May 18, 1916, ch. 126, § 2, 39 Stat. 159; June 16, 1933, ch. 89, § 11(d), 48 Stat. 182).

This section covers that part of the first sentence of section 759 relating to the maintenance of a cash reserve. For the distribution of the provisions of section 759 see note to section 5202 of this title.

§ 5215. Apportionment of funds among banks.

(a) Except as otherwise provided in this chapter, the Board of Trustees shall deposit postal savings funds received at a postal savings depository office in the banks in that locality, substantially in proportion to the capital and surplus of each bank willing to receive deposits under the terms of this chapter, and the regulations of the Board.

(b) If no qualified bank in the locality in which the funds were received at postal savings depository offices is willing to receive deposits of postal savings funds on the terms prescribed, the Board shall deposit the funds in the bank most convenient to the depository office. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 684.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 759 (Aug. 24, 1912, ch. 387, § 1, 37 Stat. 512; June 25, 1910, ch. 386, § 9, 36 Stat. 816; May 18, 1916, ch. 126, § 2, 39 Stat. 159; May 17, 1932, ch. 190, 47 Stat. 158; June 16, 1933, ch. 89, § 11(d), 48 Stat. 182).

This section covers the provision of section 759 of title 39, relating to apportionment of funds available for deposit in banks. For the distribution of the provisions of section 759, see note to section 5202 of this title.

Section 265, title 12, prohibits Federal officials from discriminating between insured banks on the basis of State or Federal charter or membership in the Federal Reserve System.

Changes are made in phraseology.

§ 5216. Security for funds deposited in banks.

The Board of Trustees, to the extent that the deposits are not insured under section 264 of title 12, shall require banks receiving deposits of postal savings funds to provide such security in public bonds or other securities authorized by act of Congress, or supported by the taxing power, as it deems sufficient and necessary to insure the safety and prompt payment of the deposits. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 684.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed. § 759 (Aug. 24, 1912, ch. 387, § 1, 37 Stat. 512; June 25, 1910, ch. 386, § 9, 36 Stat. 816; May 18, 1916, ch. 126, § 2, 39 Stat. 159; May 17, 1932, ch. 190, 47 Stat. 158; June 16, 1933, ch. 89, § 11(d), 48 Stat. 182).

This section covers only those provisions of section 759 of title 39, U.S.C., which relate to the pledging of securities by banks. The words "on demand” are omitted in view of section 5217(b) of this title which authorizes time deposits. For distribution of section 759, see note to section 5202 of this title.

§ 5217. Interest on bank deposits.

(a) Subject to subsection (b) of this section, depository banks shall pay interest on postal savings funds at a rate uniform throughout the United States and territories thereof of not less than 21⁄4 per centum a year.

(b) The Board of Trustees may deposit postal savings funds on time in member banks of the Federal Reserve System, subject to the provisions of section 371b of title 12 and of the regulations of the Board of Governors of the Federal Reserve System. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 684.) HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 758 and 759 (June 25, 1910, ch. 386, §§ 8 and 9, 36 Stat. 816; Aug. 24, 1912, ch. 389, § 10, 37 Stat. 559; May 18, 1916, ch. 126, § 2, 39 Stat. 159; Aug. 24, 1912, ch. 387, § 1, 37 Stat. 512; May 17, 1932, ch. 190, 47 Stat. 158; June 16, 1933, ch. 89 § 11 (c), (d), 48 Stat. 182; Aug. 23, 1935, ch. 614, § 341, 49 Stat. 721.)

This section consolidates item (3) of section 758, title 39, with the provisions relating to the rate of interest in section 759. For the distribution of the provisions of sections 758 and 759, see the notes to sections 5313 and 5202 of this title, respectively.

§ 5218. Purchase of Government obligations.

(a) When the postal savings deposits in a State, Territory, the District of Columbia or the Commonwealth of Puerto Rico exceed the amount which qualified banks therein are willing to receive the Board of Trustees may invest any excess in bonds or other securities of the United States or in other obligations which are lawful investments for trust funds of the United States.

(b) When in the judgment of the President the general welfare and interest of the United States so require, the Board of Trustees may invest all or any part of the postal savings funds in bonds or other securities of the United States or in other obligations which are lawful investments for trust funds of the United States. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 684.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 759 (Aug. 24, 1912, ch. 387, § 1, 37 Stat. 512; June 25, 1910, ch. 386, § 9, 36

Stat. 816; May 18, 1916, ch. 126, § 2, 39 Stat. 159; May 17, 1932, ch. 190, 47 Stat. 158; June 16, 1933, ch. 89, § 11(d), 48 Stat. 182).

This section covers the provisions of section 759 of title 39, relating to funds not deposited in banks and the use thereof for the purchase of Government obligations. The phrase "in other obligations which are lawful investments for trust funds of the United States" has been added in subsections (a) and (b), since various provisions of law authorize instruments of the United States to issue obligations which by the enabling statutes are made lawful investments for all fiduciary, trust and public funds of the United States. Cf. section 311 of the National Housing Act, as amended. As postal savings funds are trust funds, the quoted phrase has been inserted for clarity.

Reference to purchase of postal savings bonds which have been issued under the act of July 25, 1910, is omitted as absolute. The authority to issue these bonds terminated on July 1, 1935, and the last bonds issued under this authority matured on July 1, 1955.

For the distribution of the provisions of section 759, see note following section 5202 of this title. Changes are made in phraseology.

§ 5219. Sources of funds to pay depositors.

(a) Postal funds used to pay postal savings depositors shall be replaced from postal savings funds on deposit in the State, Territory, the District of Columbia and the Commonwealth of Puerto Rico insofar as they may be sufficient for the purpose and so far as practicable, from postal savings funds on deposit in the community in which the depositor maintains his account.

(b) The Board of Trustees may obtain funds needed to meet withdrawals of postal savings depositors either by withdrawals of funds on deposit with banks or by disposal of bonds held as postal savings investments. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 684.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 758 and 759 (June 25, 1910, ch. 386, §§ 8 and 9, 36 Stat. 816; Aug. 24, 1912, ch. 389, § 10, 37 Stat. 559; May 18, 1916, ch. 126, § 2, 39 Stat. 159; Aug. 24, 1912, ch. 387, § 1, 37 Stat. 512; May 17, 1932, ch. 190, 47 Stat. 158; June 16, 1933, ch. 89, § 11 (c) and (d), 48 Stat. 182; Aug. 23, 1935, ch. 614, § 341, 49 Stat. 721).

This section consolidates the provisions relating to withdrawals contained in sections 758 and 759 of title 39. Subsection (a) covers the second sentence of section 758 of title 39, U.S.C.

Subsection (b) covers the seventh and thirteenth sentences of section 759 of title 39.

For the distribution of the provisions of sections 758 and 759 see the notes to sections 5213 and 5202. Changes are made in phraseology.

§ 5220. Bank fees on postal savings business.

Banks in which postal savings funds are deposited may not receive a fee or compensation on account of the cashing or collection of a check or the performance of other service in connection with the Postal Savings System. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 685.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 758 (June 25, 1910, ch. 386, § 8, 36 Stat. 816; Aug. 24, 1912, ch. 389, § 10, 37 Stat. 559; June 16, 1933, ch. 89, § 11(c), 48 Stat. 182; Aug. 23, 1935, ch. 614, § 341, 49 Stat. 721).

This section covers the provisions of the last sentence of section 758 of title 39. For the distribution of the provisions of section 758, see the note of section 5213 of this title.

Changes are made in phraseology.