[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR240.17]

[Page 93-95]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 240_INDORSEMENT AND PAYMENT OF CHECKS DRAWN ON THE UNITED STATES 
 
Sec.  240.17  Powers of attorney.

    (a) Specific powers of attorney. Any check may be negotiated under a 
specific power of attorney executed in accordance with applicable State 
or Federal law after the issuance of the check

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and describing the check in full (check serial and symbol numbers, date 
of issue, amount, and name of payee).
    (b) General powers of attorney. Checks may be negotiated under a 
general power of attorney executed, in accordance with applicable State 
or Federal law, in favor of a person for the following classes of 
payments:
    (1) Payments for the redemption of currencies or for principal and/
or interest on U.S. securities;
    (2) Payments for tax refunds, but subject to the limitations 
concerning the mailing of Internal Revenue refund checks contained in 26 
CFR 601.506(c); and
    (3) Payments for goods and services.
    (c) Special powers of attorney. Checks issued for classes of 
payments other than those specified in paragraph (b) of this section, 
such as a recurring benefit payment, may be negotiated under a special 
power of attorney executed in accordance with applicable State or 
Federal law, which describes the purpose for which the checks are 
issued, names a person as attorney-in-fact, and recites that the special 
power of attorney is not given to carry into effect an assignment of the 
right to receive such payment, either to the attorney-in-fact or to any 
other person.
    (d) Durable special powers of attorney. A durable special power of 
attorney is a special power of attorney that continues despite the 
principal's later incompetency, and is created by the principal's use of 
words explicitly stating such intent. Classes of checks other than those 
specified in paragraph (b) of this section may be negotiated under a 
durable special power of attorney executed in accordance with applicable 
State or Federal law, which describes the purpose for which the checks 
are issued, names a person as attorney-in-fact, and recites that the 
special power of attorney is not given to carry into effect an 
assignment of the right to receive such payment, either to the attorney-
in-fact or to any other person. For the purpose of negotiating Treasury 
checks, durable special powers of attorney are effective only during the 
six-month period following a determination that the named payee is 
incompetent.
    (e) Springing durable special powers of attorney. A springing 
durable special power of attorney is similar to a durable power of 
attorney except that its terms do not become effective until the 
principal's subsequent incompetence. As with a durable special power of 
attorney, a springing durable special power of attorney is created by 
the principal's use of language explicitly stating that its terms become 
effective at such time as the principal is determined to be incompetent. 
Classes of checks other than those specified in paragraph (b) of this 
section may be negotiated under a springing durable special power of 
attorney executed in accordance with applicable State or Federal law, 
which describes the purpose for which the checks are issued, names a 
person as attorney-in-fact, and recites that the springing durable 
special power of attorney 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. For the purpose of negotiating Treasury 
checks, springing durable special powers of attorney are effective only 
during the six-month period following a determination that the named 
payee is incompetent.
    (f) Proof of authority. Checks indorsed by an attorney-in-fact must 
include, as part of the indorsement, an indication of the capacity in 
which the attorney-in-fact is indorsing. An example would be: ``John 
Jones by Paul Smith, attorney-in-fact for John Jones.'' Such checks when 
presented for payment by a financial institution, will be paid by 
Treasury without the submission of documentary proof of the claimed 
authority, with the understanding that evidence of such claimed 
authority to indorse may be required by Treasury in the event of a 
dispute.
    (g) Revocation of powers of attorney. Notwithstanding any other law, 
for purposes of negotiating Treasury checks, all powers of attorney are 
deemed revoked by the death of the principal and may also be deemed 
revoked by notice from the principal to the parties known, or reasonably 
expected, to be acting on the power of attorney.
    (h) Optional use forms. Optional use power of attorney forms are 
listed in

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the appendix to this part. These forms are available on the FMS website 
at: http://www.fms.treas.gov/ checkclaims/ regulations.html.