If an agency needs to open a TRS account, the request must be made in writing to the Director of the Finance Division explaining the justification for the new account. The written request should be accompanied by the Request for New Treasury (TRS) Account Form C-1 which includes the following information:

Statutory authority providing for the account.

1. Whether or not check-writing authority is being requested.

2. Whether or not interest is to be retained, including statutory authority granting right to retain interest earnings.

3. Signature of officer authorized to open such an account.

4. Account title and number requested.

5. Anticipated monthly volumes for deposits and checks, if applicable.

If the ability to write checks is requested, the Banking Section will forward the request, if approved, to the Department of Administrative Services (DAS) for its approval prior to granting such authority.

Along with the Request for New Treasury (TRS) Account form, the agency will need to furnish the Banking Section with specimen signatures of all persons who will be authorized to sign checks or otherwise move funds from the account. These signatures should be submitted on the Signature Authorization Form C-2. Rubber stamp facsimiles are not acceptable. When it is necessary to add or delete signatures, a complete new  Signature Authorization Form must be submitted.

Deposit slips should always be completed before going to the bank. The following information should be included on the deposit slip:

1. Field office name (may be preprinted).

2. Date.

3. Account number (should be preprinted).

4. Coin and currency listed separately in area provided.

5. Checks listed by amount and Bank Fractional number (if listing checks on tape, attach tape to deposit slip and stamp tape with endorsement stamp). Note that all checks should have proper endorsement.

6. Total of deposit on deposit slip.

Things to do:

1. Place all cash in front of checks. The cash should be faced and in order by denomination.

2. Separate out any non-imageable items (checks drawn on foreign banks, checks in carrier documents, damaged checks, photocopies in lieu, and notices in lieu of return). These items must be prepared in a deposit separate from domestic checks, money orders, and cashiers checks.

3. Send the State Treasurer's copy of all deposit slips for banks other than Bank of America, Key Bank, U.S. Bank, and Wells Fargo Bank to the Banking Section.

4. Reconcile your Treasury accounts in a timely manner.

Note: Remember that the validation of the deposit slip or a receipt does nothing more than confirm that the deposit was made and when. It does not confirm the accuracy of the information presented on the deposit slip. That confirmation is done by the bank's proof department later that day and by the agency upon notification by Treasury of credit for the deposit. Agency verification is the only way to detect that the amount credited from Treasury is the same as the amount that was validated on the receipt.

Things not to do:

1. Do not list coin or currency in check area of deposit slip.

2. Do not include Traveler's Checks with cash; list as checks.

3. Do not send copies of voided deposit slips to Treasury.

4. Do not cash personal employee checks out of agency cash receipts.

5. Do not accept third party checks.

Deposits to the Treasurer's accounts are usually over the counter (at a teller window), through a night drop, by armored car, or electronically. Regardless of the method, there are a few basic rules that always need to be followed.

1. All night depository deposits should be made with locking or sealed bags.

2. Unprocessed bags should not be returned to the agency.

3. All corrections made after the deposit is taken to the bank must be made on deposit correction advices, not by alterations to the deposit slip. Under no circumstances should money be added to, or subtracted from, a deposit after it has been handed to a teller or dropped into a night depository. Subsequent deposits can be made if an error was made, such as cash inadvertently left out of a deposit or some similar error; but the original deposit must not be altered except by a debit or credit advice from the bank.

4. Never take "less cash" on a deposit.

5. Deposits containing cash should be counted in front of the agency representative making the deposit or delivered into a dual control arrangement at the bank. All night depository and armored car deposits should likewise be processed under dual control. (If you are interested in obtaining armored car service, contact the purchasing area of Department of Administrative Services.) If there is no dual control arrangement at the bank or branch where an agency makes its deposits, the Banking Section should be notified. We will work with the agency and the bank to set up adequate cash controls for these deposits.

6. Notification of an error in the form of a deposit correction will be sent by the bank to the Banking Section, with a copy forwarded to the agency's central office. The appropriate adjustments to the account will be made upon receipt of the advice from the bank. If an agency makes an error on a deposit slip and the bank does not find it at the time of deposit, the bank will generally not correct the error if it is less than $5.00. Therefore, if the bank does not correct an error under $5.00, Treasury will not make the deposit correction either. Agencies will be responsible for making the required adjustments on their own accounting records. The Banking Section will work with any agency in need of more timely notification of deposit corrections to the central office to try to set up a workable program with the applicable banks.

7. Under no circumstances is the agency to attempt to direct the bank to provide service in a manner inconsistent with those procedures outlined above. Any deviations from these procedures must be approved in writing by the Banking Section of Treasury.  Remember: The owner of the account the agency is depositing to at the bank is the State Treasurer.

Returned Items

Occasionally, an agency deposits a check that is returned unpaid from the bank on which the check was written. The original debit advices are sent to the Banking Section, so Treasury accounts can be corrected. The quicker the items can be handled, the better the chances are of recovering the original payment. It is expected that agencies will act on returned items at once to maximize their chances of collection. Returned items received which do not belong to the agency should be delivered, along with a copy of the bank advice, to the Banking Section at Treasury. Do not return the items directly to the bank.

Front of Check:

• State seal (should be at least 1/2 inch in diameter)

• Issuing agency name

• “To the State Treasurer Salem, Oregon”

• “State of Oregon” (optional)

• Check number

• Check date

• Check amount

• Field for written amount of check (recommended)

• “Void 2 Years after Date Issued” (8 pt type minimum)

• Fractional routing number “96-10/1232”

• “Pay to the order of”

• Issuing agency phone number

• No solid border around date, signature, payee, written amount and numerical amount field is allowed

• Only two (2) asterisks in the numerical amount field allowed, and the bank suggests using a floating dollar sign

• No asterisks in the written amount field

• Dollar amount area must be at least 1/2 inch from the right of the check, 1 3/8 to 2 9/16 inches from the bottom of the check and the area should be 2 1/2 inches wide

• No shading of fields (Shading produces poor check images; and since the implementation of Check 21 in October of 2004, most banks are moving to image replacement documents.)

• No commas in the dollar amount

• Do not use silver/gold embossed test or logos

• Use a font that is basic and clearly legible (avoid Serif font), and be sure font is dark enough and large enough (10pt minimum) to be imaged

• The phrase “Payable Through U.S. Bank” in 8 pt font. Recommended placement is upper middle of check; but if this is not possible, contact Treasury for exception processing. Black ink is recommended, but green is also acceptable.

Warning Band:

• Top – “Do not accept this check unless you can see a true watermark of chain-linked shapes when held to the light”

• Bottom – “The face of this check has a colored background **Explanation of additional security features indicated on reverse side”

Signature Line:

• Microprint (when checks are printed by State vendor)

• 3/16” from warning band

• Title of person signing check or, in lieu title, the wording “Authorized Signature” (without the title or wording, it leaves the signer open to personal liability)

MICR Line:

• 5/8” band at bottom of check

• Transit # - “123200101”

• Checking account number

• Check serial number in Auxiliary On-Us Field

• Space 44 of the MICR line should be left blank

Stub:

• “Non-Negotiable” screened on stub

• Inventory number

Back of Check:

• Screen of salmon and “Original Document”

• Security Features noted in the box:

• Microprint Signature Line (if printed by State vendor)

  • Chemical Protection
  • Erasure Protection
  • Security Screen
  • Visible Overt Fibers
  • Endorsement area not more than 1 ½

Check Truncation

Check truncation is offered by Treasury to State agencies that want to reduce administrative costs associated with handling and storing paper checks after redemption. Truncation is a process here the items processing bank digitally images redeemed checks and then destroys the originals. Copies of the items are available for up to seven years from redeemed date. This process eliminates the handling and storage of the redeemed checks by Treasury and the agency and significantly reduces the handling and processing required by the bank. Because of the reduced processing costs, Treasury is able to offer a reduced rate for accounts subject to truncation.

Copies of truncated items may be obtained by mailing or faxing a Check Photo Request Form C-7 to the Banking Section. The fax number is (503) 373-1179.

STAN is the Treasury ACH Network software application for State agencies. It is used for the centralization of Automated Clearing House transactions through the Oregon State Treasurer. Internal transfers can be accomplished through this system, creating account to account transfers. Transfers to local governments using the Local Government Investment Pool can also be done, as well as payments to vendors and other outside payments. There are two types of STAN users:

a. Site to Site – The agency creates NACHA compliant files without the assistance of a Treasury provided solution and sends the file to Treasury via an encrypted connection.

b. STAN Online – The agency uses a Treasury provided browser based application to create and send ACH transactions to Treasury over the Internet.

ACH transactions received from agencies by Treasury are sent on to our Originating Depository Financial Institution (ODFI) for submission to the ACH. Some of STAN's highlights:

• Single point of entry through Treasury into the ACH system.

• Editing of ACH batches prior to submission, resulting in decreased risk of failed transactions.

• Multiple levels of access and functional security capability, resulting in dual access controls.

• Ability to build batches at selected levels of control, which reduces workload and increases security.

• Encrypted transmission between Treasury and the ACH provider.

• Dollar limits on transactions, batches, and daily business.

• Ability to send both ACH credits (make payments) and ACH debits (take money from other entity’s accounts).

• Internal transfers (between State agencies) can be accomplished same day.

• Availability of a variety of paper or electronic reports.

• Ease of reconciliation because outstanding items are eliminated.

• Easy to learn and operate.

• Online application only requires a browser to access.

• Application support and maintenance provided by Treasury at no cost to the agency.

Treasury will provide setup and training for new STAN Online users as well as ongoing user support. Treasury will also provide support for site-to-site users. Most questions can usually be answered by a telephone call to Treasury.

5. Interagency Agreement

Customer Benefits

• Speeds the receipt of paper remittances and increases funds availability by reducing mail and check-clearing float.

• Ensures agency compliance with the statutory requirements to deposit moneys by the day following their receipt.

• Improves internal controls over the collection process reducing the risk of loss of funds.

• Reduces collection expenses by decreasing in-house processing costs.

• Responds quickly to volume surges and reduces processing delays.

• Provides timely electronic transmission of selected remittance information.

• Mails customer's backup daily.

Treasury administers a master agreement with a bank to provide both retail and wholesale lockbox services. Several boards and commissions use lockbox services to collect license fees. Other agencies use the lockbox services for tax remittances, loan repayments, and other types of fees.

Treasury will help agencies coordinate the setup of lockbox services. If you believe you may have applications or programs which may benefit from the use of a lockbox service or if you have further questions, contact Banking Section .

• Altered Items

• Counterfeit Items

• Deceased Payee

• Forged Endorsement

• Improper or Lack of Endorsement

To process altered items, send the following to Treasury:

1. Original check/warrant plus one additional copy of both the front and back. If the original is not available, send an authentic reproduction (plus one copy) of the front and back of the check/warrant. To order a reproduction, send a Check Photo Request Form C-7 to the Banking Section.

2. Original plus one additional copy of notarized Affidavit of Altered Item Form C-16. Each check/warrant sent for processing must be accompanied by a separate affidavit.

3. Original plus one additional copy of Fraud Collection Claimant Information sheet  Form C-17.

4. Two copies of agency's record of check/warrant issuance.

5. A cover letter which includes:

1. Agency's name and address
2. Contact person's name and telephone number
3. Agency's account number to be credited when collection is effected

Counterfeit Check/Warrant

A counterfeit check/warrant is an “unauthorized” check/warrant which was cashed as an original. Counterfeit items can be produced a number of ways.  Color photocopies are common. The check is paid multiple times and is caught through the reconciliation process. Checks can be scanned and modified using a scanner, a desktop publishing application, and a color printer. The payee and amount are typically changed. If magnetic ink is used by the forger, the bank will not need to strip the bottom of the check/warrant MICR line. If you receive checks back, you should inspect those items that are stripped to verify immediately if you have a counterfeit item. Forgers can also order check stock from a variety of check providers using the agency’s account number. These counterfeits probably won’t look like State checks but may be processed by the banks nonetheless.

Counterfeit checks/warrants are covered under the UCCs as “unauthorized signatures”. If the counterfeit items are discovered after the midnight deadline (as discussed later in this chapter), they should be processed for collection as a forgery where ordinary care was not exercised by the person or bank accepting the check/warrant. Therefore, send the following to Treasury:

1. Counterfeit check/warrant plus one additional copy of both the front and back. If the original is not available, send an authentic reproduction (plus one copy) of the front and back of the check/warrant. To order a reproduction, send a Check Photo Request Form C-7 to the Banking Section.

2. Notarized original and one copy of Affidavit of Forgery Form C-18. Each check/warrant sent for processing must be accompanied by a separate affidavit.

3. Original plus one additional copy of Fraud Collection Claimant Information Form C-17.

4. A cover letter which includes:

1. Agency's name and address
2. Contact person's name and telephone number
3. Agency's account number to be credited when collection is effected
4. Original payee's name and amount

Deceased Payee

If a check/warrant is cashed after the payee's death, and it is 180 days or less since the item was negotiated, send the following to Treasury:

1. Original check/warrant plus one additional copy of both the front and back. If the original item is not available, send an authentic reproduction (plus one copy) of both the front and back of the check/warrant. To order a reproduction, send a Check Photo Request  Form C-7 to the Banking Section.

2. Original plus one additional copy of Fraud Collection Claimant Information  Form C-17.

3. Two copies of death certificate.

4. A cover letter which includes:

1. Agency's name and address
2. Contact person's name and telephone number
3. Agency's account number to be credited when collection is effected

Forged Check/Warrant

A forged check is one with an endorsement made without the express, implied, or apparent authority of the person whose name is signed. To determine if the item is a forgery that can be returned for collection:

1. It must be 18 months or less since the item was returned to the agency.

2. The item cannot be altered.

3. The endorsement must be in the name of the payee.

Send the following information to Treasury:

1. Original check/warrant plus one additional copy of both the front and back. If the original is not available, send an authentic reproduction (plus one copy) of both the front and back of check/warrant. To order a reproduction, send a Check Photo Request Form C-7 to the Banking Section.

2. Notarized original Affidavit of Forged Endorsement Form C-19 plus one copy. Each check/warrant sent for processing must be accompanied by a separate affidavit.

3. Original plus one additional copy of Fraud Collection Claimant Information sheet Form C-17.

4. One copy of each Handwriting Exemplar Form C-20a & C-20b).

5. A cover letter which includes:

1. Agency's name and address
2. Contact person's name and telephone number
3. Agency's account number to be credited when collection is effected

1. Original check/warrant plus one additional copy of both the front and back. If the original is not available, send an authentic reproduction (plus one copy) of the front and back of check/warrant. To order a reproduction, send a Check Photo Request Form C-7 to the Banking Section.

2. Original plus one additional copy of Fraud Collection Claimant Information sheet Form C-17.

3. A cover letter which includes:

1. Agency's name and address
2. Contact person's name and telephone number
3. Agency's account number to be credited when collection is effected

Time Periods for Reporting Forgeries

The UCCs speak to contributory negligence on forged signatures or alterations of negotiable instruments. If an agency fails to exercise “ordinary care” in the issuance of a check/warrant and this contributes to an alteration of the check or someone forges the signature, the State cannot assess payment against a person who, in good faith, pays the check/warrant. Ordinary care means observance of commercial standards prevailing in the area and applies to all parties(including all banks) in the check/warrant issuance and collection process.

Under the UCCs, customers must discover and report any alteration on the face or back or the check/warrant within 180 days after the statement or item is made available. Since Treasury receives daily presentments from the disbursement bank, the 180 day period should be considered to start on the day the item was negotiated. In addition, if an agency doesn’t detect and report the alteration within 30 days, the agency is precluded from asserting against the bank for any subsequent items passed by the same wrongdoer. Altered items will generally be passed back up the collection chain to the person or bank that initially cashed the check, since they should have caught the alteration.

Unauthorized signatures (counterfeit) checks/warrants present a unique problem, since the banks have no responsibility to verify maker signatures on state checks/warrants drawn on Treasury. Counterfeit items must be discovered and reported within the “midnight deadline” for final settlement in order for Treasury to return the checks to the disbursement bank. The midnight deadline means that the checks/warrants must be returned by midnight of the next business day following the receipt of the item. If counterfeit items are discovered after the midnight deadline, they should be processed for collection using the Affidavit of Forgery Form C-18 citing the appropriate reason why the person/bank accepting the check should not have accepted it.

Agencies that do not truncate checks should scan the returned checks daily for unusual items. Counterfeit items will generally be a different color and/or size and will often have a stripped MICR line (another MICR line taped to the bottom of the check).

Under the UCCs, agencies have 18 months to discover and report unauthorized endorsements. Banks often maintain record availability for one year. Therefore, agencies should strive to discover and report unauthorized endorsements within one year of the time the check/warrant was negotiated.

Controls Over Check Issuance

Since the UCCs specifically address ordinary care and contributory negligence, it is absolutely essential that agencies exercise due diligence in its control over the check issuance process.

Treasury has implemented a custom single state check stock which contains numerous security features designed to deter alteration and replication. In addition, all banks have been notified of this check design which places a burden of ordinary care upon them to know what a valid State check looks like.

Treasury has issued policy 02.18.02 which can be found in Section II of this manual. This policy specifies required controls for agency issuance of checks. Further, agencies should be familiar with and comply with the internal control procedures outlined in Chapter 10 of the Oregon Accounting Manual (OAM).

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Section XI - Safekeeping

Treasury provides agencies with a means to place items of value in safekeeping. These items are held for various reasons related to an agency's activities. They usually are some form of security being held to insure performance, cover a liability, or provide some other means of financial protection. Treasury keeps these items in one of its two vaults, under dual control. Quarterly, agencies are provided with a computer listing of items held in safekeeping for them. There is no charge for this service.  It is the responsibility of the agency to determine the value of the instrument being held, and that value is entered on the safekeeping receipt. In most cases, it is also the responsibility of the agency to determine the types of instruments that are acceptable. If the responsibility for determining the types of acceptable instruments falls with Treasury, assigned time certificates of deposit and bearer bonds are currently listed as acceptable. This list is subject to amendment at any time. For a current list, agencies may call the Administrative Accountant in the Banking Section.

If the item being held in safekeeping is a bearer instrument, Treasury will not clip matured coupons to deliver to the instrument's owner. This is the responsibility of the agency. Requests for release of items held in safekeeping must be in writing from an authorized person of the applicable agency. Agency personnel picking up the items should also be authorized and must sign off on the original safekeeping receipt.

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Section XII - Stale Dated Checks/Warrants

Pursuant to ORS 293.450, on August 1 of each year, State agencies are required to provide certification to the Division of State Lands summarizing all outstanding checks/warrants that were two years old as of July 1 of the current year. The detail listings of outstanding checks/warrants must include all information required by State Lands and are to be mailed directly to them according to their instructions. State Lands can be contacted at (503) 378-3805. State Lands will notify Treasury of the appropriate transfer of funds to be made.

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Section XIII - Local Government Investment Pool (LGIP)

The Local Government Investment Pool (LGIP) is an open-ended, no-load diversified portfolio offered to eligible participants, which include—but are not limited to—any municipality, political subdivision, or public corporation of Oregon that by law is made the custodian of, or has control of, any public funds. The pool is commingled with state funds in the Oregon Short Term Fund (OSTF).

State agencies must receive formal authorization from the local government involved prior to sending payment to the local government’s pool account. State agencies can make payments to pool accounts via Automated Clearing House (ACH) transfer, or by a balanced transfer through the Statewide Financial Management Application (SFMA). State agencies need to work directly with the receiving local government to determine the best option for making payment to the local government.

Agencies using SFMA to transfer funds to pool accounts should review the list of SFMS Distribution Document Numbers to determine whether there is an appropriate distribution document number/description combination for the funds being transferred to the pool account. If there is not an appropriate identifier already listed, the state agency should contact Treasury’s Banking Operations Manager at (503) 378-2457 to request that a new distribution document number be set up. The distribution document number is essential because it helps the receiving local government identify how to apply the funds.

In addition to using a distribution document number, the agency will also need to ensure that the Vendor Mail Code Profile is set up appropriately within SFMA. Treasury’s Banking Operations Manager can verify the pool account number to be used in the mail code setup. Please refer to the SFMS Desk Manual (101) or contact your SFMS Analyst for additional information on how to correctly set up a new mail code for a pool account.

Local Government Investment Pool contact information click here.

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Section XIV - Prepaid Cards and Electronic Funds Transfer

Funds Disbursement by State Government

One of the primary functions of many government agencies is disbursement of funds to its customers or clients. As discussed in Section V (105) of this Cash Management Manual, there are two basic ways to disburse funds to those clients: by paper (check or warrant) or by electronic funds transfer. In recent years, calls to gain efficiencies, streamline processes, increase security measures, and cut costs, both to the state and to customers, have resulted in several agencies making decisions to move towards electronic disbursement methods.

Advantages of Electronic Payments for the State and Program Recipients

As outlined in detail in Section VI, (106) of this Cash Management Manual, an electronic funds transfer (EFT) is any movement of funds by non-paper means. EFT’s offer a number of advantages over paper-based systems. Among these are the security features. An EFT system generally has various levels of security, which may include encryption of data, authentication of transaction accuracy, and secured access to facilities. There is not a paper item to be lost in the mail or stolen from a mailbox.

The state also saves money from utilizing electronic funds transfer methods instead of manually processing checks. This cost savings to the state is a result of movement to electronic payments and away from paper checks; it includes savings from prepaid card programs, but is not limited to those programs.

If a customer has a checking account, savings account or other deposit account, they are able to have funds deposited directly into that account and save time by not going to their bank to deposit their check. Additionally, the money is generally available for investment sooner, thereby increasing interest earnings. However, if the customer has limited or no access to mainstream financial services or chooses at their own discretion NOT to use an existing deposit account, the availability of a prepaid card program often times saves these customers from experiencing check cashing fees that can range from 2 to 7 percent of the check amount. For instance, on a $200 check, the recipient could pay $4 to $14 at a check cashing location to have access to their funds.

Determining Disbursement Methods for State Agencies

The State Treasury works with state agencies to determine the most cost effective method to handle funds whether it be receipting or disbursing. It is ultimately the agency’s decision on how funds are disbursed. Some agencies provide electronic funds transfer as an option for distribution of funds. Others have mandated electronic methods. When an agency mandates electronic methods of disbursing funds, the customer has the option of using their own electronic deposit solution, such as a checking account, savings account, or any one of a number of reloadable prepaid cards that are available in the marketplace. Where the customer is unable or unwilling to provide their own alternative, the state aims to meet the needs of unbanked or underbanked citizens of Oregon by offering a prepaid card program to offer an electronic deposit alternative for these unbanked customers.

Mandating Electronic Payments

Electronic payment mandates are business decisions that are legislatively authorized and made at the discretion of the agencies responsible for disbursing payments. Any questions or concerns regarding the mandate of payment options, or related exemption processes, should be addressed to the mandating agency. It is important to understand that where a mandate exists, it is NOT the use of the state offered prepaid card program itself or any other prepaid card that is mandated; it is simply the use of an electronic funds transfer option.

Current Prepaid Card Program Offered by the State

Where electronic payments are mandated and a customer is unable to provide their own deposit alternative, the state currently contracts with U.S. Bank to provide a prepaid card solution for state agencies. U.S. Bank was selected through a competitive RFP process in late 2004, resulting in an executed contract in May 2005. Performance related to the contract is reviewed formally on at least an annual basis and ongoing operational issues are addressed throughout the year. Please call Treasury Management Services  to inquire about the current status of this or any successor contracts.

Determining Fees Charged to Cardholders

There are no fees to state agencies for use of the card program.

Fees for certain services under the prepaid card program are negotiated by the State Treasury. These fees are outlined in the prepaid card contract and disclosed to the cardholder when they receive their card. Importantly, all point-of-sale transactions, including those with “cash back” option is free of charge. Because cardholders served by the prepaid card program are located throughout Oregon, in both rural and metropolitan areas, it is the state’s intent to ensure that all cardholders have the greatest opportunity to obtain access to their funds in a number of different ways. The current contract balances that access with the various demographics for each of the participating programs in order to ensure the best “least-cost” access for the most cardholders. As detailed in this document, access to funds via ATM, teller and point-of-sale give the cardholder a variety of methods to access funds regardless of their physical location around the state. Importantly, all, U.S. Bank ATM withdrawals, teller withdrawals at participating financial institution that accepts Visa at their teller window and all point-of-sale transactions, including cash back options are unlimited and free.

Treasury believes that it is important for agencies to make information available regarding the current prepaid card contract including the general fee structure and options for accessing funds free of charge. Some highlights are included below. Please contact Treasury for any questions or for additional details:

Using Prepaid Cards Free of Charge

Again, it is important to understand that the prepaid card solution is just one option that is offered to customers. Treasury encourages the use of direct deposit into customer’s bank accounts. However, for the unbanked, underbanked or those simply choosing, at their own discretion, not to have funds deposited into their existing account, the card program can offer a more cost effective and secure way to receive funds than a check or warrant. There are a number of ways that cardholders can access their funds for free through ATM access, teller withdrawals and unlimited point-of-sale transactions with cash back options.

Accessing Cash Free of Charge

The state has negotiated a number of different ways for customers to access funds free of charge. Importantly all point-of-sale transactions are free. Cardholders can also select the cash back option at merchants that offer point-of-sale PIN transactions. U.S. Bank will not charge the cardholder for ATM cash withdrawals at any U.S. Bank ATM or for the first two transactions at any non-U.S. Bank ATM. As with all traditional bank customers, if you request an ATM withdrawal from an ATM owner other than your own bank, in this case U.S. Bank, you may also be charged a fee from the ATM owner that U.S. Bank has no control over.

Cardholder also have unlimited free cash withdrawals from a teller, at any participating financial institution that accepts Visa at their teller window. This teller option is in addition to the always UNLIMITED point-of-sale and cash back options.

Using the Card to Purchase Goods at a Store

These transactions are called Point-of-Sale (POS) transactions. If you are using the card to purchase something at a merchant, there is no fee associated with it. It will work just like any other Visa, except that it is paying the merchant from the amount stored on your card, not using credit. With participating merchants, you can also request cash back without paying a fee.

Glossary of Terms

ABA Number (110)- A unique identifying transit number assigned to each bank by the American Bankers' Association National Numeric System. The transit number has three parts. The first indicates the federal reserve district and city where the bank is located. The second part indicates the assigned bank number. The third part is a check digit. The transit number appears in the upper right corner of checks as a numerical portion of a fraction.

Account Transfer (111) (formerly Suspense Transfer) - The transfer of monies from one Treasury account to another or from a Treasury account to an Agency account or General Fund account.

Agency Account (112) (formerly Receipted Account)  - An account established with the State Controller's Division, Department of Administrative Services. These accounts may have warrant-writing authority. Agency accounts require statutory authority to be opened, and all budgetary and cash controls for these accounts exist with the State Controller's Division.

Agency Account Number  (113) - The ten-digit account number designated by the Department of Administrative Services.

Appropriation - Monies considered and construed as constituting a credit in favor of the agency for the amount stated in the law making the appropriation, subject to the allotment as provided in Oregon Revised Statute 291.234. (114)

Authorized Signer (115) - An individual who has the legal right to issue instructions.

Automated Clearing House (ACH) (116) - A computerized facility that performs the clearing of paperless entries between member depository institutions. It is a batch process system that is destined for future settlement of transactions. The ACH will take the transaction information and store it until necessary for payment to occur on the settlement date.

Bearer Bonds  (117) - Bonds issued with attachable coupons that must be presented to a paying agent or the Oregon State Treasury for semiannual interest payments. Federal law has prohibited the issuance of bearer bonds since 1982.

Check  - A demand draft drawn on the Oregon State Treasury and payable through the Treasury items-processing bank.

Commercial Bank (118)- A full-service institution that offers deposit, payment, and credit services to all types of customers, in addition to other financial services.

Counterfeit Check/Warrant (119) - A copy of a check/warrant cashed as an original. It could be in the form of a photocopy, a newly created check created using the Treasurer's and agency's account number, or a scanned, altered and color print of an original.

Debt Service - Cash required at a given point in time for payments of interest and current maturity of principal of outstanding debt.

Discount Fee (120)- A fee quoted as a percentage of the transaction amount.

Dual Control - The segregation of responsibilities to increase internal controls. This procedure requires that two members of the staff be involved in a transaction.

Electronic Funds Transfer (EFT) (121) - Any movement of funds by non-paper means. EFTs provide various levels of security and the funds are generally available for investment sooner.

Encryption - Encoding transactions at transmission and decoding upon receipt. Encryption is particularly important for applications involving sensitive data such as a wire transfer system.

Endorsement  - Signature of the payee made for the purpose of negotiating a check/warrant.

Federal Reserve - The organization created by the 1913 Federal Reserve Act. The system includes the twelve Federal Reserve banks and their branches, plus the member banks which are its legal owners. The Board of Governors, headquartered in Washington, exercises overall control over the nationwide operation of the Federal Reserve System.

Fedwire System - A system whereby debits or credits are processed through the accounts of member institutions at the Federal Reserve. Transfers between banks may be made in federal funds, or excess reserves may be borrowed or loaned.

Forged Check/Warrant - A check/warrant with an endorsement made without the express, implied, or apparent authority of the person whose name is signed.

General Fund Account - An account established with the State Controller's Division that exists within the General Fund. These accounts may have warrant-writing authority. General Fund Accounts require statutory authority to be opened, and all budgetary and cash controls for these accounts exist with the State Controller's Division.

Handwriting Exemplar - A form used in the forgery process to analyze the signature of a claimant to verify that the claimant's signature was indeed forged on the disputed item.

Imaging - A process which allows paper documents to be scanned, converted to a digital image, and stored for subsequent handling and processing.

Limitation - Authorization from the Legislature to expend monies up to the lesser of the amount of cash on deposit or the amount of a limitation.

Lockbox (122) - A cash management system whereby an agency's customers mail payments to a post office box near the State's bank. The bank collects checks from the lockbox several times a day, deposits them to the Treasury's account, and informs the agency of the deposit.

Merchant Bank Card Services (123)- The ability of an agency to accept a credit or debit card for payment of goods or services.

Midnight Deadline  - The time for which Treasury's presentment bank has to return counterfeit checks/warrants. It is midnight on the next banking day following the banking day on which it receives the item.

MICR (124) - Magnetic Ink Character Recognition. The American Bankers' Association program that provides for encoding of checks and documents with standard characters in magnetic ink so that they can be electronically "read" and processed.

Night Depository - A small vault located on the inside of a bank but accessible to customers outside the bank for depository purposes. It is a convenient service offered to agencies wishing to deposit receipts after regular banking hours.

Pre-encode - To encode the dollar amount of a check on the MICR line prior to depositing the item with a bank.

Prenote - A zero dollar ACH transaction that is used to verify that information contained in the ACH record is correct.

Procurement Card - A bank card used to purchase goods or services.

Repetitive Transaction - Where the sender expects to send funds to a recipient on more than one occasion in the future, and where the only information expected to change in the record is the amount of money sent.

Returned Item - Checks, drafts, or notes that have been dishonored by the drawee or maker and are sent back to the presenting party.

Settlement Date - Date by which a security order must be settled, either by a buyer paying for the securities with cash or by a seller delivering the securities and receiving the proceeds of the sale.

Sorting Services - Services provided utilizing electronic equipment having the ability to read, sort, and process MICR-encoded checks.

Stale-Dated Check/Warrant - A State check/warrant that is past the expiration period stated on the face of the check/warrant.

State Treasury ACH Network (STAN) (125)- Software application for State agencies, used for the centralization of Automated Clearing House (ACH) transactions through the Oregon State Treasury.

Third Party Check - A check that is signed over by the original payee (the person to whom the check is made payable) to a different person who then negotiates (cashes or deposits) the check.

Time Certificate of Deposit - Monies held in a financial institution for a fixed term or with the understanding that the depositor can withdraw only by giving adequate notice.

Treasury Account (formerly Suspense Account) (126)- An account established with Treasury. These accounts may have check writing authority, if approved by both Treasury and the Department of Administrative Services. Treasury accounts require statutory authority to be opened, and are outside the purview of the Budget and Management Division of the Department of Administrative Services.

Truncation - A process whereby the items processing bank microfilms redeemed checks/warrants and then destroys the originals. Copies are available for up to seven years from the redeemed date.

Trust Fund (127) - A fund established separate and distinct from the General Fund with either a constitutionally or statutorily dedicated purpose.

Warrant  (128)- A formal certification of the validity of a debt with authorization or direction to the State's items processing bank to pay the debt upon presentment.

Wire Transfer  (129)- A transaction by which funds are moved electronically from one bank to another upon a customer's instructions through bookkeeping entries at the two banks.

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