The city collection department sometimes has a section which handles the deposits and reports of certain special customers, as railroads or steamship lines, which wish special advice as to the payments and deposits of their agents. A daily report is pre pared and sent to these accounts.
Cash Item Proof The several sections of the city collection department, as noted above, make separate proofs at the close of the day. These are summarized in the total cash proof of the department as follows: Duties of the Coupon Collection Department The collection of due coupons and of due or called bonds has become an important activity in large banks and trust companies. In the smaller institutions this form of collection item is handled by the note teller or by the city collection and country collec tion departments, which have sprung from his department. In the larger institutions the volume and importance of the work warrant the use of a specialized department, which may be called the "coupon collection" department. This department receives for collection, subject to count, to be credited only on final pay ment, coupons, due bonds, and bonds called for payment. It receives items: 1. From the customers' securities department (coupons de tached from bonds held in safe-keeping for customers).
2. From the bond department (coupons detached from bonds owned by the bank as investment).
3. From the loan department (coupons detached at the re quest of the borrower from bonds held as collateral).
4. From the foreign division.
5. Over the counter.
6. By ordinary and registered mail and by express.
Those received by ordinary mail are registered in a book which the mail teller keeps for that purpose; the others are entered by the note teller (or the department in the bank which handles the registered mail, etc.) in his coupon blotter, under their respective headings, and charged to the coupon collection department. Bonds called, or bonds due or soon due, may be received from any of the above sources.
All coupons other than those detached from obligations of the United States or any of its political subdivisions, must be accom panied by a certificate of ownership made out on one of the forms prescribed by the United States Treasury. The ownership cer
tificates state whether the owners are exempt from the normal income tax subject to stoppage at the source. The owner is required to state on the certificate the name of the debtor, a description of the particular issue of bonds, the date of maturity, the amount of interest, and is required to date the certificate; it must then be signed by the owner, or his agent, with the complete address of both. If signed by an agent, the first collecting bank or agency must write or stamp across the face of the certificate "satisfied as to the identity and responsibility of agent." This, of course, should be done only when the signing agent is known to the collecting agent.
The ownership certificates are of several classes, shown in the following scheme: I. Original certificates A. Interest on bonds and other similar obligations of domestic and resident corporations.
i. Tax to be paid at source (white, Form i000).
("I certify that the owner of the bonds from which the interest entered herein was derived falls within the class of persons or organizations opposite which such interest is entered.") 2. Tax not to be paid at source (yellow, Form loci).
(" I certify that the owner of the bonds or other similar obligations from which the interest entered herein was de rived falls within the class of persons or organizations op posite which the amount of such interest is entered and is entitled to such interest without deduction of tax.") B. Dividends on stock of foreign corporations and interest on bonds of foreign countries and foreign corporations.
I. Tax not to be paid at source (green, Form IooiA).
(" I certify that the owner of the bonds or stock on which the interest or dividend entered herein was derived falls within the class of persons or organizations opposite which the amount of such interest or dividend is entered and is entitled to such interest or dividend without deduction of tax.") C. Disclosing actual owner of stock.
i. For use of foreign principal—individual, firm, or organiza tion—to be filed with representative in the States of such foreign principal, to disclose actual ownership of stock of domestic corporation (buff, Form 1087).