A-89224, OCTOBER 19, 1937, 17 COMP. GEN. 357

A-89224: Oct 19, 1937

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CHECKS - OUTSTANDING LIABILITIES - REGISTRY FUNDS OF UNITED STATES COURTS CHECKS DRAWN BY THE CLERK OF A UNITED STATES COURT ON FUNDS WHICH HAVE BEEN PAID INTO THE REGISTRY OF THE COURT AND DEPOSITED WITH THE TREASURER OF THE UNITED STATES. ARE CHECKS DRAWN ON THE TREASURER OF THE UNITED STATES WITHIN THE PURVIEW OF THE REQUIREMENT IN THE ACT OF JUNE 26. THAT AMOUNTS OF CHECKS DRAWN ON THE TREASURER WHICH HAVE BEEN OUTSTANDING AND UNPAID FOR MORE THAN ONE FULL FISCAL YEAR FOLLOWING THE FISCAL YEAR IN WHICH DRAWN SHALL BE TRANSFERRED TO THE TRUST FUND ACCOUNT "OUTSTANDING LIABILITIES. THAT MONEY DEPOSITED IN THE REGISTRY OF A UNITED STATES COURT SHALL NOT BE WITHDRAWN EXCEPT BY ORDER OF THE JUDGE OR JUDGES OF THE COURT HAVING BEEN SATISFIED WHEN CHECKS ARE DRAWN BY THE CLERK OF THE COURT.

A-89224, OCTOBER 19, 1937, 17 COMP. GEN. 357

CHECKS - OUTSTANDING LIABILITIES - REGISTRY FUNDS OF UNITED STATES COURTS CHECKS DRAWN BY THE CLERK OF A UNITED STATES COURT ON FUNDS WHICH HAVE BEEN PAID INTO THE REGISTRY OF THE COURT AND DEPOSITED WITH THE TREASURER OF THE UNITED STATES, ARE CHECKS DRAWN ON THE TREASURER OF THE UNITED STATES WITHIN THE PURVIEW OF THE REQUIREMENT IN THE ACT OF JUNE 26, 1934, 48 STAT. 1235, THAT AMOUNTS OF CHECKS DRAWN ON THE TREASURER WHICH HAVE BEEN OUTSTANDING AND UNPAID FOR MORE THAN ONE FULL FISCAL YEAR FOLLOWING THE FISCAL YEAR IN WHICH DRAWN SHALL BE TRANSFERRED TO THE TRUST FUND ACCOUNT "OUTSTANDING LIABILITIES," THE REQUIREMENT OF SECTION 996, REVISED STATUTES, AS AMENDED (28 U.S. 852), THAT MONEY DEPOSITED IN THE REGISTRY OF A UNITED STATES COURT SHALL NOT BE WITHDRAWN EXCEPT BY ORDER OF THE JUDGE OR JUDGES OF THE COURT HAVING BEEN SATISFIED WHEN CHECKS ARE DRAWN BY THE CLERK OF THE COURT--- IT BEING PRESUMED THAT ALL PRIOR REQUIREMENTS HAVE BEEN MET.

ACTING COMPTROLLER GENERAL ELLIOTT TO C. B. WATKINS, CLERK, UNITED STATES DISTRICT COURT, CLEVELAND, OHIO, OCTOBER 19, 1937:

YOUR LETTER OF SEPTEMBER 24, 1937, IS AS FOLLOWS:

THE REGISTRY FUNDS OF THIS COURT HAVE BEEN DEPOSITED WITH THE TREASURER OF THE UNITED STATES IN ACCORDANCE WITH TITLE 31, SECTION 725V, U.S.C.A., UNDER SYMBOL NO. 893-956. IN ACCORDANCE WITH THE PROVISIONS OF TITLE 31, SECTION 725T, U.S.C.A. SOME OF THESE FUNDS, REPRESENTED BY CHECKS WHICH HAVE BEEN OUTSTANDING FOR MORE THAN ONE FISCAL YEAR, WERE TRANSFERRED BY THE TREASURY DEPARTMENT TO AN APPROPRIATION ENTITLED "OUTSTANDING LIABILITIES.' I AM OF THE OPINION THAT REGISTRY FUNDS OF THIS COURT CANNOT BE DIMINISHED BY SUCH A TRANSFER UNLESS SUCH FUNDS ARE WITHDRAWN IN ACCORDANCE WITH THE PROVISIONS OF TITLE 28, SECTION 852, U.S.C.A.

THE DIVISION OF BOOKKEEPING AND WARRANTS HAS SUGGESTED THAT THIS MATTER BE TAKEN UP WITH YOU. WILL YOU THEREFORE PLEASE ADVISE WHETHER OR NOT THE PROVISIONS OF TITLE 31, SECTION 725T, U.S.C.A. PROVIDING FOR THE TRANSFER OF FUNDS WHICH REPRESENT CHECKS THAT HAVE BEEN OUTSTANDING FOR ONE YEAR FOLLOWING THE CLOSE OF THE FISCAL YEAR IN WHICH THEY WERE DRAWN APPLY TO THIS SPECIAL CCOUNT?

TITLE 31, U.S. CODE, SECTIONS 725T AND V (ACT OF JUNE 26, 1934, 48 STAT. 1235, 1236), PROVIDES:

725T. CHECKS DRAWN ON TREASURER OF UNITED STATES; WHEN PAYABLE; DEPOSIT OF AMOUNT OF UNPAID CHECKS. HEREAFTER ALL CHECKS DRAWN ON THE TREASURER OF THE UNITED STATES, EXCEPT THOSE ISSUED ON ACCOUNT OF PUBLIC-DEBT OBLIGATIONS AND TRANSACTIONS REGARDING THE ADMINISTRATION OF BANKING AND CURRENCY LAWS, SHALL BE PAYABLE ONLY UNTIL THE CLOSE OF THE FISCAL YEAR NEXT FOLLOWING THE FISCAL YEAR IN WHICH SUCH CHECKS WERE ISSUED, AND THE AMOUNTS OF ALL SUCH CHECKS PROPERLY DUE AND PAYABLE WHICH HAVE NOT BEEN PRESENTED FOR PAYMENT WITHIN SUCH PERIOD SHALL BE DEPOSITED INTO THE TREASURY TO THE CREDIT OF A TRUST FUND ACCOUNT ENTITLED "OUTSTANDING LIABILITIES (FISCAL YEAR)," DESIGNATED BY FISCAL YEARS IN WHICH THE CHECKS WERE ISSUED. THE BALANCES IN THE OUTSTANDING LIABILITIES ACCOUNT NOW CARRIED ON THE BOOKS OF THE GOVERNMENT, REPRESENTING THE AMOUNTS OF UNCLAIMED CHECKS, SHALL BE TRANSFERRED TO THE ACCOUNT "OUTSTANDING LIABILITIES, 1934," AND ANY BALANCES REMAINING THEREIN, OR IN ANY SUCCEEDING FISCAL YEAR ACCOUNT, UNCLAIMED FOR TWO FISCAL YEARS AFTER THE DEPOSIT THEREIN SHALL BE COVERED INTO THE SURPLUS FUND OF THE TREASURY: PROVIDED, THAT THE BALANCES TO THE CREDIT OF THE OUTSTANDING LIABILITIES ACCOUNT OF ANY FISCAL YEAR WHICH HAS NOT BEEN COVERED INTO THE SURPLUS FUND OF THE TREASURY SHALL BE AVAILABLE TO PAY CLAIMS ON ACCOUNT OF ANY CHECK, THE AMOUNT OF WHICH HAS BEEN INCLUDED IN ANY BALANCE SO COVERED INTO THE SURPLUS FUND. (JUNE 26, 1934, C. 756, SEC. 21, 48 STAT. 1235.)

725V. MONEYS IN REGISTRY OF UNITED STATES COURT; DISPOSITION.--- MONEYS IN, OR PAYABLE INTO, THE REGISTRY OF ANY UNITED STATES COURT, IN THE DISCRETION OF THE COURT, MAY BE DEPOSITED IN OFFICIAL CHECKING ACCOUNTS WITH THE TREASURER OF THE UNITED STATES, SUBJECT TO DISBURSEMENT ON ORDER APPROVED BY THE COURT. (JUNE 26, 1934, C. 756, SEC. 23, 48 STAT. 1236.)

TITLE 28, U.S. CODE, SECTIONS 851 AND 852 (SECS. 995 AND 996, REVISED STATUTES, AS AMENDED), PROVIDES:

MONEYS PAID INTO COURT; DEPOSIT.--- ALL MONEYS PAID INTO ANY COURT OF THE UNITED STATES OR RECEIVED BY THE OFFICERS THEREOF, IN ANY CAUSE PENDING OR ADJUDICATED IN SUCH COURT, SHALL BE FORTHWITH DEPOSITED WITH THE TREASURER, OR A DESIGNATED DEPOSITARY OF THE UNITED STATES, IN THE NAME AND TO THE CREDIT OF SUCH COURT. NOTHING HEREIN SHALL BE CONSTRUED TO PREVENT THE DELIVERY OF ANY SUCH MONEY UPON SECURITY, ACCORDING TO AGREEMENT OF PARTIES, UNDER THE DIRECTION OF THE COURT. (R.S.SEC. 995; MAY 29, 1920, C. 214, SEC. 1, 41 STAT. 654.)

SAME: WITHDRAWAL.--- NO MONEY DEPOSITED AS AFORESAID SHALL BE WITHDRAWN EXCEPT BY ORDER OF THE JUDGE OR JUDGES OF SAID COURT, RESPECTIVELY, IN TERM OR IN VACATION, TO BE SIGNED BY SUCH JUDGE OR JUDGES, AND TO BE ENTERED AND CERTIFIED OF RECORD BY THE CLERK; AND EVERY SUCH ORDER SHALL STATE THE CAUSE IN OR ON ACCOUNT OF WHICH IT IS DRAWN.

IN EVERY CASE IN WHICH THE RIGHT TO WITHDRAW MONEY SO DEPOSITED HAS BEEN ADJUDICATED OR IS NOT IN DISPUTE AND SUCH MONEY HAS REMAINED SO DEPOSITED FOR AT LEAST FIVE YEARS UNCLAIMED BY THE PERSON ENTITLED THERETO, IT SHALL BE THE DUTY OF THE JUDGE OR JUDGES OF SAID COURT, OR ITS SUCCESSOR, TO CAUSE SUCH MONEY TO BE DEPOSITED IN THE TREASURY OF THE UNITED STATES, IN THE NAME AND TO THE CREDIT OF THE UNITED STATES. ANY PERSON OR PERSONS OR ANY CORPORATION OR COMPANY ENTITLED TO ANY SUCH MONEY MAY, ON PETITION TO THE COURT FROM WHICH THE MONEY WAS RECEIVED, OR ITS SUCCESSOR, AND UPON NOTICE TO THE UNITED STATES ATTORNEY AND FULL PROOF OF RIGHT THERETO, OBTAIN AN ORDER OF COURT DIRECTING THE PAYMENT OF SUCH MONEY TO THE CLAIMANT, AND THE MONEY DEPOSITED AS AFORESAID SHALL CONSTITUTE AND BE A PERMANENT APPROPRIATION FOR PAYMENTS IN OBEDIENCE TO SUCH ORDERS. (R.S. SEC. 996; FEB. 19, 1897, C. 265, SEC. 3, 29 STAT. 578; MAR. 3, 1911, C. 224, 36 STAT. 1083).

THE PERMANENT APPROPRIATION "RETURN OF UNCLAIMED MONEYS DEPOSITED BY CLERK OF COURTS" CREATED BY THE SECOND PARAGRAPH OF SECTION 852, TITLE 28, U.S. CODE, WAS SUPERSEDED BY THE TRUST-FUND ACCOUNT "UNCLAIMED MONEYS OF INDIVIDUALS WHOSE WHEREABOUTS ARE UNKNOWN" CREATED BY SECTION 725P (B) (14), TITLE 31.

THE REQUIREMENT OF SECTION 852, TITLE 28, U.S. CODE, THAT MONEY DEPOSITED IN THE REGISTRY OF THE COURT SHALL NOT BE WITHDRAWN EXCEPT BY ORDER OF THE JUDGE OR JUDGES OF THE COURT HAS BEEN SATISFIED WHEN CHECKS ARE DRAWN BY THE CLERK OF THE COURT, IT BEING PRESUMED THAT ALL PRIOR REQUIREMENTS HAVE BEEN MET. THE QUESTION CONCERNS THE CHECKS RATHER THAN THE FUND. CHECKS SO DRAWN UPON FUNDS DEPOSITED WITH THE TREASURER OF THE UNITED STATES ARE CHECKS ON THE TREASURER OF THE UNITED STATES AND, THEREFORE, COME WITHIN THE PURVIEW OF SECTION 725T, TITLE 31, U.S. CODE, SUPRA, AND IF OUTSTANDING AND UNPAID FOR MORE THAN ONE FULL FISCAL YEAR THE AMOUNT THEREOF IS PROPERLY FOR TRANSFER TO THE TRUST-FUND ACCOUNT ENTITLED "OUTSTANDING LIABILITIES.'