RD Instruction 2018-D

Table of Contents

Page 1

PART 2018 - GENERAL

Subpart D - Policy and Procedure for Processing Loan and Grant
Disbursements

and Delivery of Salary Checks and Savings Bonds

[TABLE OF CONTENTS]{.underline}

[Sec]{.underline}. [Page]{.underline}

2018.151 General. 1

2018.152 Authority and responsibility. 1

\(a\) Loan and grant disbursements. 1

\(b\) Delivery of salary checks and savings bonds. 1

2018.153 Loan and grant disbursement processing. 2

\(a\) General policy. 2

\(b\) EFT disbursements. 2

\(c\) Treasury checks. 3

\(d\) Emergency requests for disbursements. 4

2018.154 Supervised bank accounts. 5

2018.155 Non-receipt of EFT disbursements. 6

2018.156 Lost, stolen, missing or destroyed Treasury check. 6

2018.157 Mutilated Treasury check. 6

2018.158 Cancellations. 7

\(a\) Return of EFT disbursment. 7

\(b\) Check cancellation. 7

2018.159 Stale dated checks. 7

2018.160 Monitoring. 8

2018.161 Salary checks. 8

\(a\) Issuance and delivery of salary disbursements. 8

\(b\) Delivery to employee. 8

\(c\) Allotment from salary disbursement for credit to

savings account. 8

\(d\) Nonreceipt of salary disbursement. 8

\(e\) Errors in salary disbursements. 9

\(f\) Recertification system. 9

\(g\) Recertification and replacement after receipt by

employee. 11

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2018.162 Savings bonds. 11

\(a\) Purchase. 11

\(b\) Verification of bonds. 12

\(c\) Replacement bonds (nonreceipt). 12

\(d\) Replacement bonds for lost, stolen, mutilated,

defaced, or destroyed bonds. 13

\(e\) Credit balances. 14

2018.163 - 2018.200 \[Reserved\] 14

Exhibit A -- Rural Development Disbursement Matrix

Exhibit B -- Fax Transmittal

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RD Instruction 2018-D

PART 2018 - GENERAL

Subpart D - Policy and Procedure for Processing Loan and Grant
Disbursements

and Delivery of Salary Checks and Savings Bonds

§ 2018.151 [General]{.underline}.

This subpart prescribes the policy and procedure for the disbursement
and cancellation of Rural Development loan and grant funds, rental
assistance, and guaranteed loan disbursements, and the delivery of
salary checks and savings bonds. Disbursements related to recoverable
and nonrecoverable cost items processed as Type 60 purchase orders are
discussed in RD Instruction 2024-A. Rental assistance disbursements will
be made in accordance with RD Instruction 1951-K.

§ 2018.152 [Authority and responsibility]{.underline}.

\(a\) [Loan and grant disbursements]{.underline}. Designated Rural
Development program staff personnel in the National Office and field
offices, hereinafter referred to as the servicing office (SO), will be
responsible for requesting and delivering loan and grant funds to
program recipients. Recipients are defined as any individual,
corporation, or other public or private entity, such as a borrower,
grantee, lender, closing agent, management firm, contractor, etc.,
authorized to receive a Federal payment. SO's are responsible for
requesting disbursements on an "as needed" basis, ensuring effective
fiscal management and use of multiple advance provisions within program
guidelines. For assistance in the processing and/or delivery of program
disbursements to recipients, the SO will contact the Rural Development
disbursement contacts for the applicable programs as listed in Exhibit A
of this subpart.

\(b\) [Delivery of salary checks and savings bonds]{.underline}.
Designated personnel services staff in the National Office, State
Offices, and St. Louis Rural Development offices, are designated as
Human Resources offices. These offices are responsible for matters
relating to salary checks and savings bonds, as described in § 2018.161
and § 2018.162 of this subpart.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DISTRIBUTION: WSAL Administrative Services

General

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§ 2018.153 [Loan and grant disbursement processing]{.underline}.

\(a\) [General policy]{.underline}. SO's will process disbursement
requests in accordance with related loan and grant program guidelines.
Additionally, SO's will need to refer to the applicable automated system
user documentation for the data entry procedures associated with
requesting loan and grant disbursement; (e.g., Program Loan Accounting
System (PLAS), Automated Multi-Housing Accounting System (AMAS),
Guaranteed Loan System (GLS), Dedicated Loan Origination and Servicing
System (DLOS), and Rural Utilities Loan Servicing System (RULSS)).
Exhibit A of this subpart provides general guidance for requesting loan
and grant disbursements through each of the automated systems. This
exhibit is subject to modifications as subsequent appropriation bills
and system enhancements are implemented. Exhibit A also identifies loan
and grant programs that are not maintained on an automated system,
hereinafter referred to as manual programs. For manual programs, the SO
will mail, phone, or fax a disbursement request to the office of the
Deputy Chief Financial Officer (DCFO), Cash Management Branch (CMB),
referenced in Exhibit A of this subpart. The delivery of disbursements
to recipients will be made via the electronic funds transfer (EFT) or
Treasury paper check method. The EFT method will be used if identified
as the disbursement method for a disbursement type in Exhibit A of this
subpart because EFT is more cost effective and disbursements are fully
traceable if not received by the recipient. Also, the destruction,
mutilation, loss, theft, and 2 to 3 day mail time associated with paper
checks will be eliminated if the EFT method is used. Disbursements made
by EFT will be available for withdrawal from a recipient\'s account at
the designated financial institution 2 work days after update to the
respective system referenced in Exhibit A. EFT disbursements must be
delivered to the recipient within 5 working days and Treasury check
disbursements must be delivered to the recipient within 20 working days.
Accordingly, SO\'s should schedule loan closings within 5 working days
of EFT disbursements and 20 working days from Treasury check dates. If a
disbursement cannot be delivered within these timeframes, the funds must
be returned to the applicable DCFO or Centralized Servicing Center (CSC)
Cash Management organization referenced in Exhibit A for cancellation
and reordered when needed.

\(b\) [EFT disbursements]{.underline}.

\(1\) [Enrollment]{.underline}. The SO will enroll the payee in EFT by
completing Standard Form (SF) 3881, "ACH Vendor/Miscellaneous Payment
Enrollment Form." SF 3881 may also be obtained from the website for
Treasury's Financial Management Service at http://fms.treas.gov. The SO
will submit the payee routing information for processing in accordance
with § 2018.153(b)(2) or § 2018.153(b)(3) of this subpart, as
applicable.

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> RD Instruction 2018-D

§ 2018.153(b) (Con.)

\(2\) [Processing - Automated Systems]{.underline}. For program
disbursements processed through PLAS, GLS, or AMAS, the Rural
Development EFT System Handbook should be used as the primary guide for
EFT enrollment and processing procedures. For electric and
telecommunication program disbursements, Rural Utilities Service program
staff enters the borrower\'s EFT routing information into the Borrower
Directory Management System, and processes the disbursement request via
the RULSS. See Exhibit A of this subpart for further discussion. For
program disbursements processed through the DLOS, refer to the DLOS
Training Manual.

\(3\) [Processing - Manual Programs]{.underline}. SO's may mail, phone,
or fax a disbursement request to the DCFO, CMB referenced in Exhibit A
of this subpart. The request must include the payee name, case number,
loan type/type of assistance, amount of disbursement, payee\'s EFT bank
routing number, account number and account type (checking/savings), date
of obligation, and undisbursed balance (non-contracts). The DCFO will
issue the disbursement via EFT.

\(c\) [Treasury checks]{.underline}.

The following procedures must be used by the SO to issue and correct
problems with Treasury Check disbursements:

\(1\) [Issuance of Treasury check]{.underline}. Treasury checks will be
prepared by Treasury\'s Kansas City Regional Finance Center (RFC) in
accordance with instructions received from the DCFO. The RFC will issue
the check in the payee\'s name (no address) and mail the check to the
Rural Development SO. Treasury checks will be dated 2 to 3 working days
after the date the disbursement request is processed.

\(2\) [Delivery of checks by SO]{.underline}. Checks will be delivered
to the respective recipients in accordance with the appropriate loan or
grant program instruction. When checks are delivered to the SO, the
Rural Development official will ensure that the name of the payee and
the amount of the check coincide with the request on file. The Rural
Development official should be sure that the check is properly endorsed
to ensure payment to the intended recipient. An example of such a
restrictive endorsement is:

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§ 2018.153(c)(2) (Con.)

\"Pay to the order of (3rd party payee) - (contractor, developer,
sub-contractor, building supply house, etc.) for the purpose of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.\"

Treasury checks not delivered within 20 working days of the date of the
check will be returned in accordance with 2018.158(b) of this subpart.

\(d\) [Emergency requests for disbursements]{.underline}.

\(1\) [PLAS, GLS, AMAS and Rural Utilities Service (RUS) electric and
telephone emergency disbursement]{.underline}. EFT disbursements will be
made available to the recipient 2 days after the disbursement
transaction successfully processes to PLAS, GLS, AMAS, or RULSS. If a
disbursement is required sooner, a rush request can be requested from
the DCFO, CMB if banking information for a prescheduled loan closing or
disbursement date has not been entered into the EFT database. (Reference
Rural Development Disbursement Contacts listed in Exhibit A of this
subpart). These requests will be limited and will be handled on an
exception basis. The information captured on the SF 3881 and the
disbursement request information must be given to the DCFO, CMB either
by phone or fax. When submitting the disbursement request information to
the DCFO, CMB by fax, see Exhibit B of this subpart. This sample page
may be used as a fax transmittal sheet to submit the required data. At
the time of the request, the DCFO, CMB will verify that the routing
number is accurate. Once the funds have been released, the
borrower\'s/lender\'s account will be updated to show the request.

\(2\) [DLOS emergency disbursement]{.underline}. If funds are required
in less than 48 hours for a program disbursement processed through DLOS,
a wire transfer will be necessary. The SO should follow the instructions
in the DLOS Training Manual. The SO should make every effort to complete
the appropriate DLOS processing actions at least 5 days before the
planned closing. However, if for some reason this was not possible, the
following steps must be taken:

\(i\) The SO must complete and sign the Rush Closing Form (which can be
obtained from the DLOS Training Manual) explaining the reason(s) for the
exception.

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RD Instruction 2018-D

§ 2018.153(d)(2) (Con.)

\(ii\) The completed Rush Closing Form, along with all items on the
Pre-Audit Document Fax Checklist, \"Closing\" section list, must be
faxed to the State Office. The signed Rush Closing Form must be faxed
(before 10:00 AM Central Time) to CSC Cash Management Section,
Disbursement Unit to obtain approval from the CSC for the exception.
(Reference Rural Development Disbursement Contacts listed in Exhibit A
of this subpart.)

\(iii\) CSC will process the wire transfers based on CSC staff\'s
ability to handle the volume. The wire transfers will be handled in the
order that the requests are received.

§ 2018.154 [Supervised bank accounts]{.underline}.

Supervised bank accounts are bank, savings and loan, or credit union
accounts established through deposit agreements entered into among the
borrower, the United States of America acting through Rural Development,
and the Financial Institution on Form RD 402-1, \"Deposit Agreement.\"
Under circumstances described in RD Instruction 1902-A, SO's may deposit
loan and grant disbursements into supervised bank accounts for
subsequent payment to recipients. SO's will order loan and grant funds
on an as needed basis to minimize the use of supervised bank accounts.
Supervised bank accounts will be used only when needed as defined in RD
Instruction 1902-A to assure the correct expenditure of all or a part of
loan and grant funds, borrower contributions, and borrower income. Such
accounts will be limited in amount and duration to the extent feasible
through the prudent disbursement of funds and the prompt termination of
the interests of Rural Development and other lenders when the accounts
are no longer required. SO\'s are responsible for ensuring that
supervised bank accounts are properly collateralized in accordance with
RD Instruction 1902-A.

§ 2018.155 [Non-receipt of EFT disbursements]{.underline}.

For non-receipt of EFT disbursements, the SO's should contact the
appropriate DCFO or CSC Cash Management organization listed in Exhibit A
of this subpart for assistance. The DCFO or CSC Cash Management
organization will put a tracer on the Automated Clearing House
disbursement and inform the SO of the appropriate corrective action.

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§ 2018.156 [Lost, stolen, missing or destroyed Treasury
check]{.underline}.

Upon notification by the recipient of a lost, stolen, missing, or
destroyed Treasury check, the SO's will call or send a memorandum to the
appropriate DCFO or CSC Cash Management organization listed in Exhibit A
of this subpart. The SO will provide Cash Management with the case
number, payee name, amount of check, date of check, check number (if
this is available), whether or not the check has been endorsed, whether
or not a replacement check is required, and whether the loss occurred
prior to or subsequent to the release of the check to the recipient. The
CSC or DCFO Cash Management organization will place a stop payment on
the check with Treasury. If the Treasury check has been negotiated,
Treasury will provide a copy of the negotiated check. In this case, a
replacement check may not be issued. If the Treasury check has not been
negotiated, a replacement check may be issued. In the event the lost
check is received or located prior to receipt of the replacement check,
the SO will immediately notify CSC for DLOS disbursements or DCFO for
all other program disbursements. In most circumstances, the original
check cannot be released to the payee. In the event the original check
is received or located after receipt of the replacement check, the SO
will contact the appropriate DCFO or CSC Cash Management organization
listed in Exhibit A of this subpart for assistance in proper disposition
of the check. Under no circumstances will the SO process a new loan
voucher to obtain a check to replace one which has been lost, stolen,
missing, or destroyed.

§ 2018.157 [Mutilated Treasury check]{.underline}.

For mutilated Treasury checks issued for DLOS disbursements, the SO
should send the check, along with Form RD 1940-10, "Cancellation of U.S.
Treasury check and/or Obligation," and Form RD 3550-17, "Funds
Transmittal," to CSC, Cash Management Section, Disbursement Unit, in
accordance with the Direct Single Family Housing Loans and Grants, Field
Office Handbook (HB-1-3550). CSC will cancel the check and issue a new
check**.** A loan check for all other programs that is mutilated or
defaced to such an extent as to render it nonnegotiable will be returned
promptly to the DCFO, CMB, with a memorandum requesting that the SO be
notified when a new check can be ordered. The DCFO will request a stop
payment to be processed through Treasury. Under no circumstances will
the SO process a new loan voucher to obtain a check to replace one which
has been mutilated.

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RD Instruction 2018-D

§ 2018.158 [Cancellations]{.underline}.

\(a\) [Return of EFT disbursement]{.underline}. EFT funds not delivered
within 5 working days of the disbursement will be returned. In the event
that funds disbursed through EFT must be returned, the following
procedures should be followed. For program disbursements processed
through PLAS, GLS, or AMAS, the Rural Development EFT System Handbook,
*Special Processing Procedures* - *Return of ACH Disbursements*, should
be used as the primary guide for procedures relating to the return of
EFT disbursements. The SO will contact the borrower immediately and the
borrower will authorize the return of the disbursement. In situations
where the borrowers or payees cannot be contacted, the DCFO, CMB should
be contacted immediately. As the originator of the disbursement, the
DCFO\'s office can request the bank to return the funds. See the EFT
System Handbook for detailed instructions. For DLOS disbursement
returns, the SO must notify the CSC, Cash Management Section,
Disbursement Unit (ACH Unit) if a closing is not going to occur within 5
business days. If funds are in the recipient\'s bank account, and the
loan is not rescheduled to close within the 5 business day timeframe,
the CSC Disbursement Unit will retrieve the funds from the Closing
Agent, and transmit the funds back to the Department of Treasury.

\(b\) [Check cancellation]{.underline}. The SO will cancel and return
checks not delivered within 20 working days of the date of the check
with Form RD 1940-10, "Cancellation of U.S. Treasury Check and/or
Obligation," or Form RD 1944-53, "Multi-Family Housing Cancellation of
U.S. Treasury Check and/or Obligation," as prescribed in RD Instruction
1951-B. Under no circumstances will an undelivered check remain
outstanding for more than 20 working days after the date of the check.

§ 2018.159 [Stale dated checks]{.underline}

Under the provisions of Public Law 100-86, the Competitive Equality
Banking Act of 1987, generally all U.S. Treasury checks must be
negotiated within 12 months after the date of the check or become
\"stale dated.\" Stale dated checks are automatically cancelled by
Treasury and are not negotiable. Stale dated checks received by or held
by the SO should be forwarded to the applicable DCFO or CSC, Cash
Management organization listed in Exhibit A of this subpart, along with
instructions regarding whether the disbursement should be reissued or
cancelled.

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§ 2018.160 [Monitoring]{.underline}

SO's are responsible for establishing controls to ensure disbursements
are negotiated within the 5 and 20 workday timeframes as prescribed in

§ 2018.153.

§ 2018.161 [Salary checks]{.underline}

All salary disbursements must be made by EFT unless the employee has
requested and received a waiver to continue receiving a Treasury check
in accordance with 31 CFR Part 208. The employee should contact his/her
servicing Human Resources Office to request a waiver.

\(a\) [Issuance and delivery of salary disbursements]{.underline}.

\(1\) Employees will execute a SF-1199A, "Direct Deposit Sign-Up Form,"
to have their net salary deposited directly in a financial institution.

\(2\) Employees who meet one of the circumstances under which a waiver
of EFT is available will execute an\
AD-349, "Employee Address," to have their checks sent to their mailing
address.

\(b\) [Delivery to employee]{.underline}. All salary disbursements must
be sent by EFT unless a circumstance exists under which a waiver is
available. Salary checks for USDA employees are mailed from the RFC to
the address designated by the employee.

\(c\) [Allotment from salary disbursement for credit to savings
account]{.underline}. Employees who wish to have payroll deductions for
savings in specified amounts remitted regularly to a financial
institution of their choice will execute a SF-1199A.

\(d\) [Nonreceipt of salary disbursement]{.underline}. Any salary
disbursement which is not received the day it is normally received
should be reported to the Human Resources Office.

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RD Instruction 2018-D

§ 2018.161 (Con.)

\(e\) [Errors in salary disbursements]{.underline}.

\(1\) Checks which contain an error in name or designation of payee that
would preclude proper negotiation will be forwarded by the employee to
his/her Human Resources Office together with a signed memorandum citing
the employee\'s social security number, the pay period involved, and a
request for issuance of a replacement check. The Human Resources Office
will forward the signed memorandum received from the employee together
with the check to the National Finance Center (NFC). The NFC will
forward the incorrectly drawn check to the RFC and begin reprocessing
procedures.

\(2\) Salary disbursements for an incorrect amount will be brought to
the attention of the Human Resources Office. It is incumbent upon the
employee to notify the Human Resources Office immediately of any
unexplained increase in pay as well as any decrease. Administrative
errors which result in underpayments will be corrected expeditiously
through normal NFC payroll processing procedures.

\(3\) Overpayments or erroneous payments of pay represent claims against
the employee. Such payments are subject to the provisions of
Departmental Regulation 2570-002 which provides the standards and
procedures for possible waiver of claims arising out of erroneous
payments of pay to employees. The employee to whom the erroneous payment
was made is responsible for initiating a request for waiver to the Human
Resources Office. Rural Development may not consider for waiver any
claims that are received after 3 years immediately following the date on
which the erroneous payment was discovered. Employee requests for waiver
of overpayment of pay are settled by investigating the overpayment and
coordinating the resolution of the employee\'s waiver claim.

\(f\) [Recertification system]{.underline}. Recertification is the
reissuing of a second payment because a payee is claiming nonreceipt,
loss, theft, mutilation, destruction, or forgery of U.S. Treasury
disbursements (either a Treasury check, Direct Deposit, or EFT).

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§ 2018.161 (Con.)

\(1\) The EFT System transfers salary disbursements electronically from
the U.S. Treasury Department, through the Federal Reserve System, to an
employee\'s financial institution. EFT enables direct deposit to an
employee\'s account. If deposits fail to arrive in the bank account of
the employee\'s financial institution, the NFC is notified by the Human
Resources Office based on input from the employee. NFC interacts with
the Kansas City RFC to correct the problem.

\(2\) In the event an employee is paid by a U.S. Treasury check and the
employee has not received the check by noon on Friday following the
Thursday payday, the following recertification actions will be followed.

\(i\) The employee reports to Human Resources Office that he/she was not
paid.

\(ii\) The Human Resources Office calls the NFC Payroll Adjustments and
Inquiry Section and reports checks which were not received.

\(iii\) NFC determines whether a check has been issued. If no check has
been issued, the Human Resources Office is notified and advised to send
a \"Quick Service\" request to NFC as specified in Chapter 13 of the
Payroll/Processing Manual. The \"Quick Service\" process will result in
manual processing procedures to produce a check if necessary.

\(iv\) For checks that have been issued, the NFC provides the Human
Resources Office with information which may be needed if the check is
not subsequently received by the employee.

\(v\) The Human Resources Office advises the employee of the status of
the check based on information received from the NFC.

\(3\) If the employee has not received a check by Monday following the
Thursday payday, the Human Resources Office will telephone the NFC to
request a replacement check.

\(i\) NFC will begin recertification procedures upon receipt of the
telephone call from the agency on Tuesday.

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RD Instruction 2018-D

§ 2018.161(f)(3) (Con.)

\(ii\) At this time, the employee must file and the agency must certify
the AD-663, "Request for Issuance of Substitution/Replacement Check," in
accordance with Chapter 13 of the NFC Payroll/Personnel Processing
Manual.

\(iii\) When the replacement check is requested, NFC processes a stop
payment action on the original check.

\(4\) If the payee has both checks, the replacement check should be
negotiated and the original check must be returned to the NFC.

\(g\) [Recertification and replacement after receipt by
employee]{.underline}. The procedures outlined in paragraph (f) of this
section are also followed to initiate the replacement of salary checks
which are lost, stolen, mutilated, defaced, or destroyed after receipt
by the employee. If the NFC determines that the original check has been
negotiated, the employee will be required to complete Financial
Management Service (FMS)-1133, "Claim Against the United States for The
Proceeds of A Government Check."

§ 2018.162 [Savings bonds]{.underline}.

\(a\) [Purchase]{.underline}. Employee execution of a Savings Bonds
(SB)-2362E, "Authorization for Purchase and Request for Change-United
States Series EE Savings Bonds or United States Series I
(Inflation-Indexed) Savings Bonds," authorizes the NFC to purchase U.S.
Savings Bonds through salary allotment. The SB-2362E will be prepared
and forwarded to the Human Resources Office having jurisdiction over the
employee. The Human Resources Office will review the SB-2362E for
completeness and accuracy. The data contained in the\
SB-2362E will be transmitted to the NFC and the original will be
retained on file in the Human Resources Office. The Disbursing Center,
Birmingham, Alabama, issues bonds. Delivery of bonds may be expected not
later than 30 days from the date of final payroll deduction for this
purpose. Human Resources Offices will not make inquiries of the NFC
regarding issuance of bonds until after the previously stated time
schedule for issuance and delivery clearly indicates there is need to
follow up with the NFC.

\(1\) An employee desiring to change the amount of the bond allotment or
denomination, or the name and address of the owner or co-owner will
execute a new SB-2362E.

\(2\) Payroll deductions for purchase of bonds will remain in effect
until canceled by the employee by executing a new SB-2362E or
termination from Federal service.

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§ 2018.162 (Con.)

\(b\) [Verification of bonds]{.underline}. Recipients should examine
each bond when received. Any bond drawn erroneously or incorrectly
should be returned to the employee\'s Human Resources Office with a
letter explaining the reason for such return and request issuance of a
properly drawn bond. All communications and correspondence with the NFC
regarding the correction process will be handled by the Human Resources
Office as prescribed in the NFC Payroll/Personnel Processing Manual.

\(c\) [Replacement bonds (nonreceipt)]{.underline}.

\(1\) A bond that is not received within 30 days of the date of the
final payroll deduction which provided an accumulated amount sufficient
to purchase the bond should be reported, by letter signed by the owner,
to the Human Resources Office. The letter should contain the following
information:

\(i\) A statement that the bond was not received;

\(ii\) Name of the owner and co-owner or beneficiary, if designated;

\(iii\) Owner\'s social security number. If the owner is not the
employee who purchased the bond, include the purchasing employee\'s name
and social security number;

\(iv\) Denomination of the bond;

\(v\) Mailing address for the replacement bond; and

\(vi\) A list containing the issue dates of bonds received immediately
before and after the missing bond(s).

\(2\) Upon receipt of the signed letter from the owner, the Human
Resources Office will contact the NFC Inquiry Section to obtain the
inclusive number series in which the bond was issued, the issue date, a
SF-1166, "Voucher and Schedule of Payments," pay period in which issued,
and any additional information needed. The Human Resources Office will
assist the employee in completing Public Debt Form (PD F) 3062-4, "Claim
For Relief on Account of the Nonreceipt of United States Saving Bonds,"
and then forward the signed letter with the additional information to
the RFC. The Human Resources Office will insert "SAVINGS BOND" in bold
type in the top margin of the letter to expedite issuance of the bond.

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RD Instruction 2018-D

§ 2018.162(c) (Con.)

\(3\) If a replacement bond is issued and the original bond is
subsequently received, the original bond must be returned through the
Human Resources Office to the Bureau of the Public Debt as prescribed in
the NFC Payroll/ Personnel Processing Manual. The substitute bond is the
only one which will be honored by the Treasury Department at the time it
is to be redeemed.

\(d\) [Replacement bonds for lost, stolen, mutilated, defaced, or
destroyed bonds]{.underline}.

\(1\) A request for a replacement bond should be prepared only if the
bond was received but subsequently lost, stolen, mutilated, defaced, or
destroyed to the extent of being nonnegotiable. In this case, the
designated owner must send a signed letter directly to:

U.S. Treasury Department

Bureau of Public Debt

200 Third Street

Parkersburg, WV 26106

\(2\) The letter should identify the bond(s) to be replaced and should
contain as much of the following information as possible:

\(i\) The owner\'s name and social security number;

\(ii\) Mailing address for the replacement bond;

\(iii\) Name of co-owner or beneficiary, if designated;

\(iv\) Denomination, issue date, and number of each bond; and

\(v\) A concise statement describing the circumstances which require
that a replacement bond be issued.

\(3\) The Human Resources Office will assist the employee in completing
PD F 3062-4, or PD F 1048 \"Claim For Lost, Stolen, Or Destroyed United
States Savings Bonds,\" as applicable; and then forward the signed
letter with the additional information to the RFC. If the nonnegotiable
bond is in the possession of the owner, it must be attached to and
forwarded with the letter. A copy of the letter should be furnished to
the employee\'s Human Resources Office.

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§ 2018.162(d) (Con.)

\(4\) The Human Resources Office will furnish any information needed for
the letter if requested by the employee or owner. If necessary, the
Human Resources Office will contact the NFC Inquiry Section for such
information.

\(5\) Whenever a bond is reported as lost or stolen but is subsequently
recovered, it must be returned to the Bureau of Public Debt in
Parkersburg, West Virginia, when the replacement bond is received. The
replacement bond is the only one which will be honored by the Treasury
Department at the time it is to be redeemed.

\(e\) [Credit balances]{.underline}.

\(1\) When an employee cancels a bond allotment, the salary disbursement
for the pay period in which the cancellation is effective will include
the balance in the bond account.

\(2\) When an employee terminates service with the Federal Government,
any accumulated balance to the employee\'s credit will be included in
the employee\'s final salary disbursement.

§§ 2018.163 - 2018.200 \[Reserved\]

Attachments: Exhibit A and Exhibit B

## oOo

14

Exhibit A in PDF ONLY.

RD Instruction 2018-D

Exhibit B

**[FAX TRANSMITTAL]{.underline}**

**To: Rural Development: DCFO, CMB**

**FAX No.: 314-457-4371**

**Telephone No.: 314-457-4031**

**From:**

**FAX No.:**

**Telephone No.:**

**Comments:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Request for Disbursement of Funds Data Sheet**

+--------------------------+-------------------------------------------+
| **Borrower Name**        |                                           |
+--------------------------+-------------------------------------------+
| **Amount of Loan/Grant** |                                           |
+--------------------------+-------------------------------------------+
| **Fund Code/Loan No.**   |                                           |
|                          |                                           |
| **for ADPS Borrowers**   |                                           |
+--------------------------+-------------------------------------------+
| **Undisbursed Balance**  |                                           |
+--------------------------+-------------------------------------------+
| **Date of Obligation**   |                                           |
+--------------------------+-------------------------------------------+
| **Amount of Original     |                                           |
| Obligation**             |                                           |
+--------------------------+-------------------------------------------+
| **Payee Name**           |                                           |
+--------------------------+-------------------------------------------+
| **Bank Routing Number**  |                                           |
+--------------------------+-------------------------------------------+
| **Payee Bank Account     |                                           |
| No.**                    |                                           |
+--------------------------+-------------------------------------------+
| **Type of Account**      |                                           |
+--------------------------+-------------------------------------------+
| **Borrower (Case)        |                                           |
| Number**                 |                                           |
+--------------------------+-------------------------------------------+
| **Type of Assistance**   |                                           |
+--------------------------+-------------------------------------------+
| **Check Request Amount** |                                           |
+--------------------------+-------------------------------------------+

(05-18-05) PN 386