A-3551, OCTOBER 7, 1924, 4 COMP. GEN. 361

A-3551, OCTOBER 7, 1924, 4 COMP. GEN. 361

CHECKS - INDORSEMENT UNDER GENERAL POWERS OF ATTORNEY THE PRACTICE OF ACCEPTING INDORSEMENTS UNDER GENERAL POWERS OF ATTORNEY ON DISBURSING OFFICERS' CHECKS IS NOT APPLICABLE TO CHECKS FOR DISABILITY COMPENSATION UNDER THE WAR RISK INSURANCE ACT, AS AMENDED, OR FOR OTHER PAYMENTS THE RIGHT TO WHICH CEASES WITH THE DEATH OF THE PAYEE. IN SUCH CASES THE POWER MUST SATISFY THE REQUIREMENTS OF SECTION 3477, REVISED STATUTES. VETERANS' BUREAU CHECKS FOR DISABILITY COMPENSATION PAYABLE TO BENEFICIARIES WHO ARE RESIDENTS OF FOREIGN COUNTRIES SHOULD BE DRAWN TO THE ORDER OF THE PAYEE IN CARE OF THE DIPLOMATIC REPRESENTATIVE (NOT CONSULAR REPRESENTATIVES) OF THE COUNTRY IN THE UNITED STATES, AND THE INDORSEMENT THEREON OF SUCH DIPLOMATIC REPRESENTATIVE MAY BE ACCEPTED. INDORSEMENTS BY A FOREIGN CONSUL FOR AND IN BEHALF OF THE PAYEES OF SUCH CHECKS SHOULD BE SUPPORTED BY INDIVIDUAL POWERS OF ATTORNEY IN EACH CASE.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, OCTOBER 7, 1924:

I HAVE THE REQUEST OF THE TREASURER, PRESUMABLY BY YOUR DIRECTION, FOR AN ADVANCED DECISION ON HIS RIGHT TO ACCEPT INDORSEMENTS UNDER GENERAL POWERS OF ATTORNEY, ON CHECKS ISSUED BY THE VETERANS' BUREAU, THE SPECIFIC CASE IN QUESTION BEING THAT OF THE POWER OF ATTORNEY EXECUTED MARCH 13, 1923, BY KAROL CHUDZICKI, KAROLINA CHUDZICKA, AND FRANCISZEK BARTKIEWICZ, GUARDIANS OF CERTAIN MINOR BENEFICIARIES UNDER THE WAR RISK INSURANCE ACT, IN FAVOR OF THE CONSUL OF THE REPUBLIC OF POLAND, WHICH AUTHORIZED THE CONSUL TO INDORSE AND COLLECT MONEY DUE ON CHECKS DRAWN IN THEIR FAVOR BY ANY DISBURSING OFFICER OF THE UNITED STATES FOR WHATEVER ACCOUNT AND IS TO REMAIN IN FORCE UNTIL REVOKED.

IN DECISION OF FEBRUARY 12, 1916, 22 COMP. DEC. 393, THE ACCEPTANCE OF INDORSEMENTS UNDER POWERS OF ATTORNEY IN THE CASE OF PENSION CHECKS WAS CONSIDERED AND IT WAS STATED THAT THE PURPOSE OF THE PENSION LAWS WAS TO PLACE THE PENSION CHECK AND ITS PROCEEDS DIRECTLY IN THE HANDS OF THE PENSIONER AND THAT A GENERAL POWER OF ATTORNEY TO INDORSE FUTURE PENSION CHECKS WOULD BE IN THE NATURE OF AN ASSIGNMENT AND SHOULD NOT BE ACCEPTED. SAID DECISION, HOWEVER, PERMITTED THE INDORSEMENT OF SUCH CHECKS UNDER SPECIFIC POWERS OF ATTORNEY EXECUTED AS ARE POWERS OF ATTORNEY UNDER SECTION 3477, REVISED STATUTES.

THE ACCEPTANCE OF GENERAL POWERS OF ATTORNEY WOULD DEPRIVE THE GOVERNMENT OF THE EVIDENCE OF THE CONTINUED EXISTENCE OF THE PAYEE OTHERWISE SUPPLIED BY HIS PERSONAL INDORSEMENT ON SUCH CHECKS AND WHICH EVIDENCE IS NECESSARY TO ESTABLISH THE VALIDITY OF THE PAYMENT.

AS TO DISBURSING OFFICERS' CHECKS WHICH HAVE BEEN HERETOFORE CASHED ON INDORSEMENTS UNDER GENERAL POWERS OF ATTORNEY NO QUESTION WILL BE RAISED AT THIS TIME, BUT IN ALL FUTURE CASES DISBURSING OFFICERS' CHECKS SHOWING UPON THEIR FACE THAT THEY CONSTITUTE PAYMENTS OF DISABILITY COMPENSATION UNDER THE WAR RISK ACT, OR PAYMENTS PURSUANT TO ANY OTHER LAWS UNDER WHICH THE RIGHT TO PAYMENT CEASES WITH THE DEATH OF THE PAYEE, IF NOT INDORSED PERSONALLY BY THE PAYEE, EXCEPT AS HEREINAFTER INDICATED, MUST BE ACCOMPANIED BY SPECIFIC POWERS OF ATTORNEY EXECUTED AS REQUIRED BY SECTION 3477, REVISED STATUTES: I.E., THE POWER OF ATTORNEY MUST BE---

* * * EXECUTED IN THE PRESENCE OF AT LEAST TWO ATTESTING WITNESSES, AFTER * * * THE ISSUING OF A WARRANT (OR CHECK) FOR THE PAYMENT THEREOF * * * MUST RECITE THE WARRANT (OR CHECK) FOR PAYMENT, AND MUST BE ACKNOWLEDGED BY THE PERSON MAKING THEM BEFORE AN OFFICER HAVING AUTHORITY TO TAKE ACKNOWLEDGMENTS OF DEEDS, * * *.

IN THE PARTICULAR CASE SUBMITTED, HOWEVER, THE POWER OF ATTORNEY RUNS TO THE CONSUL OF THE REPUBLIC OF POLAND, THE INDIVIDUAL BENEFICIARIES OF THE PAYMENTS BEING RESIDENT IN THAT COUNTRY. THE DIFFICULTY OF IDENTIFYING PARTICULAR BENEFICIARIES IN FOREIGN COUNTRIES OR OF COLLECTING ERRONEOUS PAYMENTS TO PERSONS RESIDING IN FOREIGN COUNTRIES, OR OF DETERMINING WHETHER A PARTICULAR POWER OF ATTORNEY EXECUTED IN A FOREIGN COUNTRY IS LEGAL UNDER THE LAWS OF THAT COUNTRY, MAKE IT DESIRABLE, WHENEVER IT CAN BE DONE, THAT PAYMENTS TO NATIVES OF AND RESIDENTS IN FOREIGN COUNTRIES BE MADE THROUGH THE REPRESENTATIVE OF THAT COUNTRY IN THE UNITED STATES. THE ADVANTAGES OF MAKING PAYMENTS IN THAT MANNER MORE THAN OVERBALANCE ANY OBJECTION TO A GENERAL POWER OF ATTORNEY. 22 COMP. DEC., 254; 6 MS. COMP. GEN., 1671.

IT IS DESIRABLE WHERE THE FACTS MAKE IT IMPOSSIBLE TO MAKE PAYMENT DIRECT TO THE PARTY CONCERNED IN A FOREIGN COUNTRY THAT THE REMITTANCES BE MADE THROUGH THE DIPLOMATIC REPRESENTATIVE OF SUCH FOREIGN COUNTRY. IN SUCH INSTANCES THE CHECK SHOULD BE DRAWN TO THE ORDER OF THE PARTY IN CARE OF THE DIPLOMATIC REPRESENTATIVE AND THE INDORSEMENT THEREON OF SUCH DIPLOMATIC REPRESENTATIVE MAY BE ACCEPTED. THE TRANSACTION IN SUCH FROM MAY REASONABLY BE CONSIDERED AS WITH THE FOREIGN GOVERNMENT. A CONSULAR OFFICER IS NOT SUCH A REPRESENTATIVE AS TO ENTITLE TRANSACTIONS SUCH AS IN QUESTION TO BE CONSIDERED AS WITH THE FOREIGN GOVERNMENT AND IN SUCH CASES THERE SHOULD APPEAR POWER OF ATTORNEY TO RECEIVE AND INDORSE THE RESPECTIVE CHECKS THE SAME AS IS REQUIRED BY OTHER INDIVIDUALS ACTING UNDER POWERS OF ATTORNEY TO SIGN GOVERNMENT CHECKS.

IT APPEARS THAT THE REPUBLIC OF POLAND HAS A DIPLOMATIC REPRESENTATIVE TO THIS GOVERNMENT.

INDORSEMENTS BY THE CONSUL OF THE REPUBLIC OF POLAND FOR AND IN BEHALF OF THE PAYEES OF WAR RISK INSURANCE OR DISABILITY COMPENSATION SHOULD BE SUPPORTED BY INDIVIDUAL POWERS OF ATTORNEY IN ACCORDANCE WITH THE ABOVE.