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B-201557 1 (1981-09-28)

handle is hein.gao/gaobadjti0001 and id is 1 raw text is: DECISION THE COMPTROLLER GENERAL OF THE UNITEO STATES WASHINGTON. 0.C. 20548 i~ ~ FILE: B-201557 DATE: September 28, 1981 MATTER OF: Crocker National Bank DIGEST: Bank's compliance with collection procedures set forth at 31 C.F.R. § 210.10 by remitting to Government full amount of credit payment issued after beneficiary's entitlement has ceased due to death fulfilled its responsibilities under 31 C.F.R. Part 210. Bank is no longer accountable for amount of payment where Government erroneously re- turned payment to bank and beneficiary's account was closed before error was detected. The legal counsel of the Bureau of Government Financial Operations, Fiscal Service, Department of the Treasury, has recuested a decision on whether Treasury may return to the Crocker National Bank, San Rafael, California, $212.60, a sum which was charged to Crocker's Federal Reserve account pursuant to Treasury regulations set forth at 31 C.F.R. Part 210. Treasury expresses the opinion that although it has a legal right to retain the funds, equitable consider- ations dictate that the $212.60 be returned to the bank. We disagree with Treasury's contention that it has a legal right to retain the funds and thus do not reach the equitable question. The remittance by Crocker of the sum of $212.60 on May 23, 1979, in strict compli- ance with the collection procedures set forth at 31 C.F.R. § 210.10, discharged the bank of its responsibility to the Government. When Treasury, by virtue of its own error, returned the funds to Crocker, Crocker was justified in crediting them to a deceased beneficiary's account and permitting the account to be closed. Treasury was not legally entitled to debit Crocker's Federal Reserve account for the sum in question, and the funds should accordingly be recredited to its account. The facts from which the claim arose, as summarized by the Department of the Treasury, are as follows: Crocker had entered a three party agreement with its depositor, Helen Persson (the payee), and the De- partment of Treasury. By the terms of this agreement, Ms. Persson authorized the direct deposit by Treasury of her recurring monthly federal benefit payments to her Crocker account. These payments were made by electronic fund transfer and are sometimes referred to as 'credit payments.' The rights and duties of the parties to such an agreement are governed by Treasury regulations appearing at 31 C.F.R. Part 210. ,,71676 l

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