Page:United States Statutes at Large Volume 54 Part 1.djvu/1120

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PUBLIC LAWS-CHS. 795, 796-OCT. 9, 1940 Right reserved. October 9, 1940 [S. 4353] [Public, No. 828] Restriction on send- ing certain checks,etc., for delivery in foreign countries. Holding of undeliv- ered checks, etc. Transmittal to drawees at end of quarter. Report. Transfer to special deposit account. Veterans' Adminis- tration. Disposition of amounts of designated checks. Deposit, etc., con- sidered payment. 43 Stat. 26. 38U..C.C 516. SEC. 5 . The right to alter, amend, or repeal this Act is hereby expressly reserved. Approved, October 9, 1940. [CHAPTER 796] AN ACT To restrict or regulate the delivery of checks drawn against funds of the United States, or any agency or instrumentality thereof, to addresses outside the United States, its Territories, and possessions, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter no check or warrant drawn against funds of the United States, or any agency or instrumentality thereof, shall be sent from the United States (including its Territories and possessions and the Common- wealth of the Philippine Islands) for delivery in a foreign country in any case in which the Secretary of the Treasury determines that postal, transportation, or banking facilities in general, or local con- ditions in the country to which such check or warrant is to be deliv- ered, are such that there is not a reasonable assurance that the payee will actually receive such check or warrant and be able to negotiate the same for full value. SEC. 2. Any check or warrant, the sending of which is prohibited under the provisions of section 1 hereof, shall be held by the drawer until the close of the calendar quarter next following its date, during which period such check or warrant may be released for delivery if the Secretary of the Treasury determines that conditions have so changed as to provide a reasonable assurance that the payee will actually receive the check or warrant and be able to negotiate it for full value. At the end of such quarter, unless the Secretary of the Treasury. shall otherwise direct, the drawer shall transmit all checks and warrants withheld in accordance with the provisions of this Act to the drawee thereof, and forward a report stating fully the name and address of the payee; the date, number, and amount of the check or warrant; and the account against which it was drawn, to the Bureau of Accounts of the Treasury Department. The amounts of such undelivered checks and warrants so transmitted shall thereupon be transferred by the drawee from the account of the drawer to a special deposit account with the Treasurer of the United States entitled "Secretary of the Treasury, Proceeds of Withheld For- eign Checks", at which time such checks and warrants shall be marked "Paid into Withheld Foreign Check Account". Thereafter the drawee shall deliver such checks and warrants, together with other paid checks and warrants, to the Comptroller General of the United States, who shall allow credit therefor in the accounts of the drawer and the drawee. In the case of checks representing payments under laws adminis- tered by the Veterans' Administration, when the amount transferred to the special deposit account on behalf of any individual payee equals $1,000, the amounts of any further checks, except checks under contracts of insurance, payable to such payee under such laws shall be covered into the Treasury as miscellaneous receipts. The deposit in the special deposit account or the covering into the Treasury as miscellaneous receipts, pursuant to the provisions of this section, of the amount of any check issued under laws administered by the Vet- erans' Administration shall be considered for all purposes, including determinations of rights under section 305 of the World War Vet- erans' Act, 1924, as amended, as payment to the person entitled thereto. 1086 [54 STAT.