Federal Reserve Bank as Bank of First Deposit - John Burnett

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Federal Reserve Bank as Bank of First Deposit
by John Burnett, BOL Guru
BIO AND CONTACT INFO

Question: I have always been told that a Federal Reserve Bank can not be a bank of first deposit. Is this true? I had a check that needed to be returned, and saw that the bank of first deposit was indeed a FRB, made payable to the IRS. This goes against what I was told, and sit here wondering the correct answer?

Answer: Checks payable to the IRS or the U. S. Treasury (as I recall, the instructions on IRS Form 1040-V (payment voucher) say to make the check payable to the U. S. Treasury now) are often deposited at the Federal Reserve Banks.

Although the Fed may hold some special status, it most definitely can be a depositary bank.

First published on BankersOnline.com 08/4/03

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