B-161008, JUN. 12, 1967

B-161008: Jun 12, 1967

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WE NOW HAVE THE ASSISTANT ADMINISTRATOR'S REPORT WITH COPIES OF PAPERS WHICH EXPLAIN THE CIRCUMSTANCES AND THE REGULATIONS PERTAINING TO THE MATTER. THE CHECK WAS RELEASED IN ACCORDANCE WITH YOUR SIGNED AUTHORIZATION GIVEN TO THE NO. 1 FEDERAL CREDIT UNION ON JULY 16. YOU CONTEND THAT THE QUOTED AUTHORIZATION WAS NOT EFFECTIVE AFTER DECEMBER 28. THE ASSISTANT ADMINISTRATOR SAYS "WE HAVE NO RECORD OF MR. UPON THE WRITTEN REQUEST OF A PERSON TO WHOM A PAYMENT IS TO BE MADE. - "/1) BY SENDING TO THE FINANCIAL ORGANIZATION DESIGNATED BY THAT PERSON A CHECK THAT IS DRAWN IN FAVOR OF THAT ORGANIZATION AND FOR CREDIT TO THE ACCOUNT OF THAT PERSON. OR "/2) IF MORE THAN ONE PERSON TO WHOM A PAYMENT IS TO BE MADE DESIGNATES THE SAME FINANCIAL ORGANIZATION.

B-161008, JUN. 12, 1967

TO MR. MORGAN P. CHANEY:

WE REFER TO YOUR LETTER OF FEBRUARY 3, 1967, WITH ENCLOSURES, AND TO OUR LETTER OF APRIL 18, 1967, CONCERNING YOUR FINAL SALARY CHECK FOR $111.58 AS AN EMPLOYEE OF THE GENERAL SERVICES ADMINISTRATION (GSA). WE NOW HAVE THE ASSISTANT ADMINISTRATOR'S REPORT WITH COPIES OF PAPERS WHICH EXPLAIN THE CIRCUMSTANCES AND THE REGULATIONS PERTAINING TO THE MATTER.

THE CHECK WAS RELEASED IN ACCORDANCE WITH YOUR SIGNED AUTHORIZATION GIVEN TO THE NO. 1 FEDERAL CREDIT UNION ON JULY 16, 1965, WHICH READS AS FOLLOWS:

"PAY CHECK PICK-UP AUTHORIZATION

"I, MORGAN PATRICK CHANEY HEREBY AUTHORIZE THE GENERAL SERVICES ADMINISTRATION NO. 1 FEDERAL CREDIT UNION, IN THE EVENT OF ANY DELINQUENCY IN PAYMENT OF MY LOAN FROM SAID CREDIT UNION OR IF OTHERWISE AUTHORIZED, TO PICK UP MY PAY CHECKS (FROM THE PAYROLL SECTION, OR OTHERWISE), ENDORSE SAME, AND DEPOSIT THEM TO MY SHARE ACCOUNT IN THE CREDIT UNION.'

YOU CONTEND THAT THE QUOTED AUTHORIZATION WAS NOT EFFECTIVE AFTER DECEMBER 28, 1966, WHEN YOU EXECUTED THE GSA EMPLOYEE CLEARANCE STATEMENT (FORM 1655) INDICATING IN BLOCK 9 OF THAT FORM THAT YOU WANTED YOUR SALARY CHECK AND BONDS MAILED TO: "NATIONAL BANK OF WASHINGTON, D.C., A/C 6-639- 96-8.' REGARDING THE STATEMENT IN YOUR LETTER OF JANUARY 23, 1967, TO THE GENERAL SERVICES ADMINISTRATOR THAT YOU SENT A GSA FORM 1373 TO MRS. ESTELLE SOKOLOSKI, EMPLOYEE ACCOUNTS BRANCH CHIEF, THE ASSISTANT ADMINISTRATOR SAYS "WE HAVE NO RECORD OF MR. CHANEY HAVING SUBMITTED A FORM 1373.'

THE ACT OF AUGUST 28, 1965, PUB.L. 89-145, 79 STAT. 582, AS CODIFIED IN 31 U.S.C. 492 (B) (1964 ED., SUPP. I), READS IN PERTINENT PART AS FOLLOWS:

"NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION OR ANY OTHER PROVISION OF LAW, AND UNDER REGULATIONS TO BE PRESCRIBED BY THE SECRETARY OF THE TREASURY, THE HEAD OF AN AGENCY MAY, UPON THE WRITTEN REQUEST OF A PERSON TO WHOM A PAYMENT IS TO BE MADE, AUTHORIZE A DISBURSING OFFICER TO MAKE THE PAYMENT---

"/1) BY SENDING TO THE FINANCIAL ORGANIZATION DESIGNATED BY THAT PERSON A CHECK THAT IS DRAWN IN FAVOR OF THAT ORGANIZATION AND FOR CREDIT TO THE ACCOUNT OF THAT PERSON; OR

"/2) IF MORE THAN ONE PERSON TO WHOM A PAYMENT IS TO BE MADE DESIGNATES THE SAME FINANCIAL ORGANIZATION, BY SENDING TO THE ORGANIZATION A CHECK THAT IS DRAWN IN FAVOR OF THE ORGANIZATION FOR THE TOTAL AMOUNT DUE THOSE PERSONS AND BY SPECIFYING THE AMOUNT TO BE CREDITED TO THE ACCOUNT OF EACH OF THOSE PERSONS.

"IN THIS SUBSECTION,"AGENCY" MEANS ANY DEPARTMENT, AGENCY, INDEPENDENT ESTABLISHMENT, BOARD, OFFICE, COMMISSION, OR OTHER ESTABLISHMENT IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH, OF THE GOVERNMENT, ANY WHOLLY OWNED OR CONTROLLED GOVERNMENT CORPORATION, AND THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA; "FINANCIAL ORGANIZATION" MEANS ANY BANK, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION OR SIMILAR INSTITUTION, OR FEDERAL OR STATE CHARTERED CREDIT UNION.'

ALSO, WE DIRECT YOUR ATTENTION TO THE TREASURY DEPARTMENT REGULATIONS APPEARING IN TITLE 31, CODE OF FEDERAL REGULATIONS, SECTION 360.5, WHICH PROVIDES AS FOLLOWS:

"/A) CHECKS INDORSED BY AN ATTORNEY IN FACT FOR THE PAYEE AND PRESENTED FOR PAYMENT BY A BANK WILL BE PAID BY THE TREASURER WITHOUT THE SUBMISSION TO THE TREASURER OF DOCUMENTARY PROOF OF THE AUTHORITY OF THE ATTORNEY IN FACT. A GENERAL POWER OF ATTORNEY IN FAVOR OF AN INDIVIDUAL, BANK OR OTHER APPROPRIATE ENTITY IS ACCEPTABLE AS AUTHORITY FOR THE INDORSEMENT OF CHECKS ISSUED FOR THE FOLLOWING PURPOSES:

"1. PRINCIPAL OR INTEREST ON PUBLIC DEBT OBLIGATIONS OR OBLIGATIONS GUARANTEED BY THE UNITED STATES.

"2. TAX REFUNDS.

"3. PAYMENTS FOR GOODS AND SERVICES.

"/B) OTHER CLASSES OF CHECKS DRAWN ON THE TREASURER OF THE UNITED STATES MAY BE NEGOTIATED ONLY UNDER A SPECIFIC POWER OF ATTORNEY EXECUTED AFTER THE ISSUANCE OF THE CHECK AND DESCRIBING IT IN FULL, EXCEPT THAT SUCH CLASSES OF CHECKS MAY BE NEGOTIATED ALSO UNDER A SPECIAL POWER OF ATTORNEY NAMING A BANK AS ATTORNEY IN FACT, LIMITED TO A PERIOD NOT EXCEEDING TWELVE MONTHS AND RECITING THAT IT IS NOT GIVEN TO CARRY INTO EFFECT AN ASSIGNMENT OF THE RIGHT TO RECEIVE PAYMENT, EITHER TO THE ATTORNEY IN FACT OR TO ANY OTHER PERSON. POWERS OF ATTORNEY ARE REVOKED BY THE DEATH OF THE GRANTOR AND MAY ALSO BE REVOKED BY NOTICE FROM THE GRANTOR TO THE PARTIES CONCERNED. NOTICE OF REVOCATION TO THE TREASURY WILL NOT ORDINARILY SERVE TO REVOKE THE POWER.'

IT WOULD APPEAR THAT YOUR SIGNED AUTHORIZATION OF JULY 16, 1965, MAY BE REGARDED AS A GENERAL POWER OF ATTORNEY UNDER "/A)" OF THE REGULATIONS QUOTED ABOVE. MOREOVER, THE FILE DOES NOT INDICATE THAT AT ANY TIME SUBSEQUENT TO JULY 16, 1965, YOU EXPRESSLY NOTIFIED THE PARTIES CONCERNED- -- THE GSA AND THE CREDIT UNION--- OF THE REVOCATION OF THE AUTHORIZATION GRANTED TO THE CREDIT UNION. AS TO YOUR DIRECTIVE ON FORM 1655 THAT YOUR CHECK BE MAILED TO THE NATIONAL BANK OF WASHINGTON, WE POINT OUT THAT SUCH DIRECTIVE COULD ONLY BE INTERPRETED AS BEING FOR APPLICATION IN THE EVENT THE CREDIT UNION MADE NO REQUEST TO PICK UP YOUR CHECK BECAUSE OF A DELINQUENCY IN YOUR LOAN ACCOUNT. THE CREDIT UNION REPORTS THAT YOUR LOAN WAS DELINQUENT AS OF NOVEMBER 19, 1966, AND AS A CONSEQUENCE THEREOF THE GENERAL SERVICES ADMINISTRATION WAS REQUESTED TO TRANSMIT YOUR FINAL SALARY CHECK TO THE CREDIT UNION IN ACCORDANCE WITH YOUR AUTHORIZATION OF JULY 16, 1965. THE AMOUNT OF THE CHECK WAS RECEIVED BY THE CREDIT UNION FOR DEPOSIT TO YOUR ACCOUNT. SINCE YOU DID NOT FURTHER COMMUNICATE WITH THE CREDIT UNION, A SUFFICIENT AMOUNT OF SUCH ACCOUNT -- OF WHICH THE CHECK WAS A PART--- WAS USED TO LIQUIDATE YOUR LOAN. WE UNDERSTAND THERE IS A BALANCE OF $23.12 TO YOUR ACCOUNT IN THE CREDIT UNION WHICH WILL BE PAID TO YOU UPON REQUEST.

IN LIGHT OF THE FOREGOING WE MUST CONCLUDE THAT THE GENERAL SERVICES ADMINISTRATION ACTED PROPERLY IN THE DISPOSITION OF YOUR FINAL SALARY CHECK AND THAT NO AMOUNT IS DUE YOU FROM THE UNITED STATES.

THE PAPERS ENCLOSED WITH YOUR LETTER OF FEBRUARY 3, 1967, ARE RETURNED HEREWITH, AS REQUESTED BY YOU.