Page:United States Statutes at Large Volume 74.djvu/724

This page needs to be proofread.
[74 Stat. 684]
[74 Stat. 684]
PUBLIC LAW 86-000—MMMM. DD, 1960

684

48 Stat. 182.

PUBLIC LAW 86-682-SEPT. 2, 1960

[74 S T A T.

to section 37lb of title 12, by member banks of the System located nearest to the place where the depository office in which the deposit was made. (b) The Postmaster General shall compute interest on deposits under such regulations as the Board of Trustees prescribes, and shall enter it to the credit of the depositor once for each quarter, beginning with the first day of the month following the date of the deposit. H e may not allow interest on any part of funds deposited for a period of less than three months or on fractions of a dollar. § 5214. Cash reserve The Treasurer of the Board of Trustees shall maintain five percent of all postal savings funds in a cash reserve. § 5215. Apportionment of funds among banks (a) Except as otherwise provided in this chapter, the Board of Trustees shall deposit postal savings funds received at a postal savings depository office in the banks in that locality, substantially in proportion to the capital and surplus of each bank willing to receive deposits under the terms of this chapter, and the regulations of the Board. (b) If no qualified bank in the locality in which the funds were received at postal savings depository offices is willing to receive deposits of postal savings funds on the terms prescribed, the Board shall deposit the funds in the bank most convenient to the depository office. § 5216. Security for funds deposited in banks The Board of Trustees, to the extent that the deposits are not insured under section 264 of title 12, shall require banks receiving deposits of postal savings funds to provide such security in public bonds or other securities authorized by act of Congress, or supported by the taxing power, as it deems sufficient and necessary to insure the safety and prompt payment of the deposits. § 5217. Interest on bank deposits (a) Subject to subsection (b) of this section, depository banks shall pay interest on postal savings funds at a rate uniform throughout the United States and territories thereof of not less than 2^4 per centum a year. (b) The Board of Trustees may deposit postal savings funds on time in member banks of the Federal Reserve System, subject to the provisions of section 371b of title 12 and of the regulations of the Board of Governors of the Federal Reserve System. § 5218. Purchase of Government obligations (a) When the postal savings deposits in a State, Territory, the District of ColumDia or the Commonwealth of Puerto Rico exceed the amount which qualified banks therein are willing to receive the Board of Trustees may invest any excess in bonds or other securities of the United States or in other obligations which are lawful investments for trust funds of the United States. (b) When in the judgment of the President the general welfare and interest of the United States so require, the Board of Trustees may invest all or any part of the postal savings funds in bonds or other securities of the United States or in other obligations which are lawful investments for trust funds of the United States. § 5219. Sources of funds to pay depositors (a) Postal funds used to pay postal savings depositors shall be replaced from postal savings funds on deposit in the State, Territory, the District of Columbia and the Commonwealth of Puerto Rico inso-