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Provisions Affecting Federal Reserve Banks

1-268

FISCAL AGENTS AND DEPOSITARIES*

U.S. Code, Title 31, Money and Finance

*
Appropriation acts customarily authorize expenditures by some government corporations and agencies for services of Federal Reserve Banks. For reimbursement of Federal Reserve Banks for fiscal services to Treasury Department, see note to section 15, Federal Reserve Act.

Authority of the Secretary of the Treasury

SECTION 321
(a) The Secretary of the Treasury shall—
(1) prepare plans for improving and managing receipts of the United States Government and managing the public debt;
(2) carry out services related to finances that the Secretary is required to perform;
(3) issue warrants for money drawn on the Treasury consistent with appropriations;
(4) mint coins, engrave and print currency and security documents, and refine and assay bullion, and may strike medals;
(5) prescribe regulations that the Secretary considers best calculated to promote the public convenience and security, and to protect the Government and individuals from fraud and loss, that apply to anyone who may—
(A) receive for the Government, Treasury notes, United States notes, or other Government securities; or
(B) be engaged or employed in preparing and issuing those notes or securities;
(6) collect receipts;
(7) with a view to prosecuting persons, take steps to discover fraud and attempted fraud involving receipts and decide on ways to prevent and detect fraud; and
(8) maintain separate accounts of taxes received in each State, territory, and possession of the United States, and collection district, with each account listing—
(A) each kind of tax;
(B) the amount of each tax; and
(C) the money paid as pay and allowances to officers and employees of the Department collecting taxes in that State, territory, possession, or district.  * * *
[31 USC 321(a). Previously 31 USC 1002 (RS 248). Restated and recodified by act of Sept. 13, 1982 (96 Stat. 880).]

1-268.1

Duties of the Secretary of the Treasury

SECTION 3301
(a) The Secretary of the Treasury shall—
(1) receive and keep public money;
(2) take receipts for money paid out by the Secretary;
(3) give receipts for money deposited in the Treasury;
(4) endorse warrants for receipts for money deposited in the Treasury;
(5) submit the accounts of the Secretary to the Comptroller General every 3 months, or more often if required by the Comptroller General; and
(6) submit to inspection at any time by the Comptroller General of money in the possession of the Secretary.
(b) Except as provided in section 3326 of this title, an acknowledgment for money deposited in the Treasury is not valid if the Secretary does not endorse a warrant as required by subsection (a)(4) of this section.
[31 USC 3301. Previously 31 USC 44 and 147 (act of June 10, 1921 § 304 (42 Stat. 24) and RS 305). Restated and recodified by act of Sept. 13, 1982 (96 Stat. 948).]

1-268.2

Custodians of Money

SECTION 3302
(a) Except as provided by another law, an official or agent of the United States Government having custody or possession of public money shall keep the money safe without—
(1) lending the money;
(2) using the money;
(3) depositing the money in a bank; and
(4) exchanging the money for other amounts.
(b) Except as provided in section 3718(b) of this title, an official or agent of the Government receiving money for the Government from any source shall deposit the money in the Treasury as soon as practicable without deduction for any charge or claim.
(c) (1) A person having custody or possession of public money, including a disbursing official having public money not for current expenditure, shall deposit the money without delay in the Treasury or with a depositary designated by the Secretary of the Treasury under law. Except as provided in paragraph (2), money required to be deposited pursuant to this subsection shall be deposited not later than the third day after the custodian receives the money. The Secretary or a depositary receiving a deposit shall issue duplicate receipts for the money deposited. The original receipt is for the Secretary and the duplicate is for the custodian.
(2) The Secretary of the Treasury may by regulation prescribe that a person having custody or possession of money required by this subsection to be deposited shall deposit such money during a period of time that is greater or lesser than the period of time specified by the second sentence of paragraph (1).
(d) An official or agent not complying with subsection (b) of this section may be removed from office. The official or agent may be required to forfeit to the Government any part of the money held by the official or agent and to which the official or agent may be entitled.
(e) An official or agent of the Government having custody or possession of public money shall keep an accurate entry of each amount of public money received, transferred, and paid.
(f) When authorized by the Secretary, an official or agent of the Government having custody or possession of public money, or performing other fiscal agent services, may be allowed necessary expenses to collect, keep, transfer, and pay out public money and to perform those services. However, money appropriated for those expenses may not be used to employ or pay officers and employees of the Government.
[31 USC 3302. Previously 31 USC 521, 484, 495, 490, 525, 545, and 1023(b) (RS 3639, 3617, 3621, 3619, 3643 and 3653, and act of June 1, 1955 § 1(b) (69 Stat. 82)). Restated and recodified by act of Sept. 13, 1982 (96 Stat. 948). As amended by act of July 18, 1984 (98 Stat. 1152).]

1-268.3

Designation of Depositaries

SECTION 3303
(a) The Secretary of the Treasury designates depositaries of money as provided in this section and under other law.
(b) When necessary to carry out the business of the United States Government and under conditions the Secretary decides are necessary, the Secretary may designate depositaries in foreign countries and in territories and possessions of the United States to receive deposits of public money. The Secretary shall give preference to United States financial institutions the Secretary decides are safe and able to give the service required.
[31 USC 3303. Previously 31 USC 473 (act of June 19, 1922 (42 Stat. 662)). Restated and recodified by act of Sept. 13, 1982 (96 Stat. 949) and amended by act of Jan. 12, 1983 (96 Stat. 2468).]

1-268.4

Transfers of Public Money from Depositaries

SECTION 3304
The Secretary of the Treasury may transfer public money in the possession of a depositary—
(1) to the Treasury; and
(2) if the Secretary believes the safety of the public money and convenience require it, to another depositary.
[31 USC 3304. Previously 31 USC 522 (RS 3640). Restated and recodified by act of Sept. 13, 1982 (96 Stat. 949).]

1-268.5

Audits of Depositaries

SECTION 3305
The Secretary of the Treasury, or an officer, employee, or agent designated by the Secretary, may audit a depositary of public money. For uniformity and accuracy in accounts and safety of public money, an individual conducting an audit shall audit a depositary’s—
(1) books;
(2) accounts;
(3) returns; and
(4) public money on hand and the way the money is kept.
[31 USC 3305. Previously 31 USC 548 (RS 3649). Restated and recodified by act of Sept. 13, 1982 (96 Stat. 949).]

1-269

Receipt of Taxes

Internal Revenue Code of 1954
SECTION 5703 * * *
(c) Use of government depositaries. The Secretary may authorize Federal Reserve banks, and incorporated banks or trust companies which are depositaries or financial agents of the United States, to receive any tax imposed by this chapter, in such manner, at such times, and under such conditions as he may prescribe; and he shall prescribe the manner, time, and condition under which the receipt of such tax by such banks and trust companies is to be treated as payment for tax purposes.
[26 USC 5703(c). As amended by act of Oct. 4, 1976 (90 Stat. 821).]
SECTION 6302 * * *
(c) Use of government depositaries. The Secretary may authorize Federal Reserve banks, and incorporated banks, trust companies, domestic building and loan associations, or credit unions which are depositaries or financial agents of the United States, to receive any tax imposed under the internal revenue laws, in such manner, at such times, and under such conditions as he may prescribe; and he shall prescribe the manner, times, and conditions under which the receipt of such tax by such banks, trust companies, domestic building and loan associations, and credit unions is to be treated as payment of such tax to the Secretary.
[26 USC 6302(c). As amended by act of Oct. 28, 1977 (91 Stat. 1228).]

1-270

Redemption of Savings Bonds and Notes; Losses and Relief from Liability

U.S. Code, Title 31, Money and Finance
SECTION 3126
(a) Under regulations prescribed by the Secretary of the Treasury, a loss resulting from a payment related to redeeming a savings bond or savings note shall be replaced out of the fund established by section 17303(a) of title 40. A Federal reserve bank, a paying agent allowed to make payments in redeeming a bond or note, or an officer or employee of the Department of the Treasury is relieved from liability to the United States Government for the loss when the Secretary decides that the loss did not result from the fault or negligence of the bank, paying agent, officer, or employee. The Secretary shall relieve the bank, agent, officer, or employee from liability when the Secretary decides that written notice of liability or potential liability has not been given to the bank, agent, officer, or employee by the Government within 10 years from the date of the erroneous payment. However, the Secretary may not relieve a paying agent of an assumed unconditional liability to the Government. * * *
[31 USC 3126(a). Previously 31 USC 757c(i) (Second Liberty Bond Act § 22(i) (40 Stat. 292)). Restated and recodified by act of Sept. 13, 1982 (96 Stat. 946). Amended by act of Aug. 21, 2002 (116 Stat.1299).]

1-272

Accounts of Government Corporations

U.S. Code, Title 31, Money and Finance
SECTION 9107
(a) With the approval of the Comptroller General, a Government corporation may consolidate its cash into an account if the cash will be expended as provided by law.
(b) The Secretary of the Treasury shall keep the accounts of a Government corporation. If the Secretary approves, a Federal reserve bank or a bank designated as a depositary or fiscal agent of the United States Government may keep the accounts. The Secretary may waive the requirements of this subsection.
(c) (1) Subsection (b) of this section does not apply to maintaining a temporary account of not more than $50,000 in one bank.
(2) Subsection (b) of this section does not apply to a mixed-ownership Government corporation when the corporation has no capital of the Government.
(3) Subsection (b) of this section does not apply to the Federal Intermediate Credit Banks, the Central Bank for Cooperatives, the Regional Banks for Cooperatives, or the Federal Land Banks. However, the head of each of those banks shall report each year to the Secretary the names of depositaries where accounts are kept. If the Secretary considers it advisable when an annual report is received, the Secretary may make a written report to the corporation, the President, and Congress.
[31 USC 9107. Previously 31 USC 867, 868 (Government Corporation Control Act §§ 302 and 303(d) (59 Stat. 601)), and 870 (act of Aug. 24, 1949 § 309 (63 Stat. 662)). Restated and recodified by act of Sept. 13, 1982 (96 Stat. 1044) and amended by act of Jan. 12, 1983 (96 Stat. 2478). “Government corporation” is defined in 31 USC 9101(1) as “a mixed-ownership Government corporation and a wholly owned Government corporation.” See 31 USC 9101(2) for a list of mixed-ownership government corporations.]

1-273

Depositaries for Federal Deposit Insurance Corporation

Federal Deposit Insurance Act of September 21, 1950 (64 Stat. 888)
SECTION 13 * * *
(b) The depository accounts of the Corporation shall be kept with the Treasurer of the United States, or, with the approval of the Secretary of the Treasury, with a Federal Reserve bank, or with a bank designated as a depositary or fiscal agent of the United States: Provided, That the Secretary of the Treasury may waive the requirements of this subsection under such conditions as he may determine: And provided further, That this subsection shall not apply to the establishment and maintenance in any bank for temporary purposes of depository accounts not in excess of $50,000 in any one bank, or to the establishment and maintenance in any bank of any depository accounts to facilitate the payment of insured deposits, or the making of loans to, or the purchase of assets of, insured banks. When designated for that purpose by the Secretary of the Treasury, the Corporation shall be a depositary of public moneys, except receipts from customs, under such regulations as may be prescribed by the said Secretary, and may also be employed as a financial agent of the Government. It shall perform all such reasonable duties as depositary of public moneys and financial agent of the Government as may be required of it.
[12 USC 1823(b). As amended by act of Aug. 9, 1989 (103 Stat. 255).]

1-274

Depositaries for Federal Home Loan Banks

Federal Home Loan Bank Act of July 22, 1932 (47 Stat. 736)
SECTION 15
Obligations of the Federal Home Loan Banks issued with the approval of the Board or the Director under this Act shall be lawful investments, and may be accepted as security, for all fiduciary, trust, and public funds the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof. The Federal reserve banks are authorized to act as depositaries, custodians, and/or fiscal agents for Federal Home Loan Banks in the general performance of their powers under this Act. All obligations of Federal Home Loan Banks shall plainly state that such obligations are not obligations of the United States and are not guaranteed by the United States.
[12 USC 1435. As amended by act of July 30, 2008 (122 Stat. 2786). The Director referred to in this paragraph is the Director of the Federal Housing Finance Agency.]

1-276

Depositaries for Secretary of Housing and Urban Development

United States Housing Act of September 1, 1937 (50 Stat. 898)
SECTION 21 * * *
(b) The Federal Reserve banks are authorized and directed to act as depositories, custodians, and fiscal agents for the Secretary in the general exercise of his powers under this chapter, and the Secretary may reimburse any such bank for its services in such manner as may be agreed upon.
[42 USC 1437h(c). As added by act of Aug. 22, 1974 (88 Stat. 666). The Secretary referred to in this section is the secretary of Housing and Urban Development.]

1-277

Depositaries for Small Business Administration

Small Business Act of July 18, 1958 (72 Stat. 387)
SECTION 6
(a) All moneys of the Administration not otherwise employed may be deposited with the Treasury of the United States subject to check by authority of the Administration. The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for the Administration in the general performance of its powers conferred by this Act. Any banks insured by the Federal Deposit Insurance Corporation, when designated by the Secretary of the Treasury, shall act as custodians and financial agents for the Administration. Each Federal Reserve bank, when designated by the Administrator as fiscal agent for the Administration, shall be entitled to be reimbursed for all expenses incurred as such fiscal agent.
[15 USC 635.]

1-278

Depositaries for Small Business Investment Companies

Small Business Investment Act of August 21, 1958 (72 Stat. 695)
SECTION 308 * * *
(b) Each small business investment company may make use, wherever practicable, of the advisory services of the Federal Reserve System and of the Department of Commerce which are available for and useful to industrial and commercial businesses, and may provide consulting and advisory services on a fee basis and have on its staff persons competent to provide such services. Any Federal Reserve bank is authorized to act as a depository or fiscal agent for any company operating under the provisions of this Act. Any such company that is licensed before October 1, 2004 and has outstanding financings is authorized to invest funds not needed for its operations—
(1) in direct obligations of, or obligations guaranteed as to principal and interest by, the United States;
(2) in certificates of deposit or other accounts of federally insured banks or other federally insured depository institutions, if the certificates or other accounts mature or are otherwise fully available not more than 1 year after the date of the investment; or
(3) in mutual funds, securities, or other instruments that consist of, or represent pooled assets of, investments described in paragraphs (1) or (2).
[15 USC 687(b). As amended by acts of Oct. 3, 1961 (75 Stat. 756); Feb. 28, 1964 (78 Stat. 147); Oct. 24, 1978 (92 Stat. 1757); Sept. 4, 1992 (106 Stat. 1016); and Dec. 8, 2004 (118 Stat. 3465).]

1-279

Depositaries for Federal National Mortgage Association and Government National Mortgage Association

National Housing Act of June 27, 1934
SECTION 309 * * *
(g) The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for each of the bodies corporate named in section 302(a)(2), for its own account or as a fiduciary, and such banks shall be reimbursed for such services in such manner as may be agreed upon; and each of such bodies corporate may itself act in such capacities, for its own account or a fiduciary, and for the account of others.
[12 USC 1723a(g). As added by section 201 of the act of Aug. 2, 1954 (68 Stat. 621) and amended by act of Aug. 1, 1968 (82 Stat. 541). The corporate bodies referred to in this subsection are the Federal National Mortgage Association and the Government National Mortgage Association.]

1-280

Depositaries for Commodity Credit Corporation

Act of July 16, 1943 (57 Stat. 566)
SECTION 3
The Federal Reserve banks are hereby authorized to act as depositaries, custodians, and fiscal agents for the Commodity Credit Corporation.
[12 USC 395.]

1-281

Depositaries for Federal Crop Insurance Corporation

Federal Crop Insurance Act of February 16, 1938 (52 Stat. 75)
SECTION 510 * * *
Subject to the approval of the Secretary of the Treasury, the Federal Reserve banks are hereby authorized and directed to act as depositaries, custodians, and fiscal agents for the Corporation in the performance of its powers conferred by this subtitle.
[7 USC 1510. As amended by act of June 18, 2008 (122 Stat. 2167). The Corporation referred to in this section is the Federal Crop Insurance Corporation.]

Depositaries for International Development Organizations

See 9-836 et seq.

1-282

Deposits for Postal Service Fund

Postal Reorganization Act Amendments of 1976 (90 Stat. 1303)
SECTION 2003 * * *
(d) With the approval of the Secretary of the Treasury, the Postal Service may deposit moneys of the Fund in any Federal Reserve bank, any depository for public funds, or in such other places and in such manner as the Postal Service and the Secretary may mutually agree.
[39 USC 2003(d). The Fund referred to in this section is the Postal Service Fund.]

1-283

Deposits of Conservators

Bank Conservation Act of March 9, 1933 (48 Stat. 2)
SECTION 206
(a) A conservator shall have all the powers of the shareholders, directors, and officers of the bank and may operate the bank in its own name unless the Comptroller in the order of appointment limits the conservator’s authority.
(b) The conservator shall be subject to such rules, regulations, and orders as the Comptroller from time to time deems appropriate; and, except as otherwise specifically provided in such rules, regulations, or orders or in section 209 of this Act, shall have the same rights and privileges and be subject to the same duties, restrictions, penalties, conditions, and limitations as apply to directors, officers, or employees of a national bank.
1-284
(c) The Comptroller may require the conservator to set aside and make available for withdrawal by depositors and payment to other creditors such amounts as in the opinion of the Comptroller may safely be used for that purpose. All depositors and creditors who are similarly situated shall be treated in the same manner.
(d) The conservator and professional employees appointed to represent or assist the conservator shall not be paid amounts greater than are payable to employees of the Federal Government for similar services, except that the Comptroller of the Currency may authorize payment at higher rates (but not in excess of rates prevailing in the private sector), if the Comptroller determines that paying such higher rates is necessary in order to recruit and retain competent personnel.
(e) All expenses of any such conservatorship shall be paid by the bank and shall be a lien upon the bank which shall be prior to any other lien.
[12 USC 206. As amended by act of Aug. 9, 1989 (103 Stat. 445).]

Depositaries for International Development Organizations

See provisions beginning at 9-836

1-285

AVAILABILITY OF RECORDS TO GOVERNMENT AGENCIES


To Federal Home Loan Banks

Federal Home Loan Bank Act of July 22, 1932 (47 Stat. 739)
SECTION 22
(a) In order to enable the Federal Home Loan Banks to carry out the provisions of this Act, the Secretary of the Treasury, the Comptroller of the Currency, the Chairman of the Board of Governors of the Federal Reserve System, the Chairperson of the Federal Deposit Insurance Corporation, the Chairperson of the National Credit Union Administration, and the Director of the Office of Thrift Supervision, upon request by any Federal Home Loan Bank
(1) shall make available in confidence to any Federal Home Loan Bank, such reports, records, or other information as may be available, relating to the condition of any member of any Federal Home Loan Bank or any institution with respect to which any such Bank has had or contemplates having transactions under this Act; and
(2) may perform through their examiners or other employees or agents, for the confidential use of the Federal Home Loan Bank, examinations of institutions for which such agency is the appropriate Federal banking regulatory agency.
In addition, the Comptroller of the Currency, the Chairman of the Board of Governors of the Federal Reserve System, the Chairperson of the National Credit Union Administration, and the Director of the Office of Thrift Supervision shall make available to the Board or any Federal Home Loan Bank the financial reports filed by members of any Bank to enable the Board or a Bank to compile and publish cost of funds indices or other financial or statistical reports.
*     *     *     *     *
[12 USC 1442(a). As amended by acts of Aug. 23, 1935 (49 Stat. 704) and Aug. 9, 1989 (103 Stat. 422). The board referred to in this paragraph is the Federal Housing Finance Board.]

To Federal Deposit Insurance Corporation

[See 1-339.]

1-286

To Securities and Exchange Commission

Trust Indenture Act of August 3, 1939 (53 Stat. 1174)
SECTION 321 * * *
(b) The Treasury Department, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Reserve Banks, and the Federal Deposit Insurance Corporation are hereby authorized, under such conditions as they may prescribe, to make available to the Commission such reports, records, other information as they may have available with respect to trustees or prospective trustees under indentures qualified or to be qualified under this title, and to make through their examiners or other employees for the use of the Commission, examinations of such trustees or prospective trustees. Every such trustee or prospective trustee shall, as a condition precedent to qualification of such indenture, consent that reports of examinations by Federal, State, Territorial, or District authorities may be furnished by such authorities to the Commission upon request therefor.
Notwithstanding any provision of this title, no report, record, or other information made available to the Commission under this subsection, no report of an examination made under this subsection for the use of the Commission, no report of an examination made of any trustee or prospective trustee by any Federal, State, Territorial, or District authority having jurisdiction to examine or supervise such trustee, no report made by any such trustee or prospective trustee to any such authority, and no correspondence between any such authority and any such trustee or prospective trustee, shall be divulged or made known or available by the Commission or any member, officer, agent, or employee thereof, to any person other than a member, officer, agent, or employee of the Commission: Provided, That the Commission may make available to the Attorney General of the United States, in confidence, any information obtained from such records, reports of examination, other reports, or correspondence, and deemed necessary by the Commission, or requested by him, for the purpose of enabling him to perform his duties under this title.
[15 USC 77uuu. The Commission referred to in this subsection is the Securities and Exchange Commission.]

1-287

To Federal National Mortgage Association

National Housing Act of June 27, 1934
SECTION 309 * * *
(d) (1) * * * With the consent of any Government corporation or Federal Reserve bank, or of any board, commission, independent establishment, or executive department of the Government, the Association may avail itself on a reimbursable basis of the use of information, services, facilities, officers, and employees thereof, including any field service thereof, in carrying out the provisions of this title.
[12 USC 1723a(d)(1). As added by section 201 of the act of Aug. 2, 1954 (68 Stat. 621) known as Housing Act of 1954 and amended by acts of Aug. 1, 1968 (82 Stat. 540); June 6, 1972 (86 Stat. 206); and Aug. 3, 1976 (90 Stat. 1076). The Association referred to in this subsection is the Federal National Mortgage Association.]

1-288

To Comptroller General

U.S. Code, Title 31, Money and Finance
SECTION 5120 * * *
(c) The Comptroller General shall audit the cancellation and destruction of United States currency and the accounting of the cancellation and destruction. Records the Comptroller General considers necessary to make an effective audit easier shall be made available to the Comptroller General.
[31 USC 5120(c). Previously 31 USC 49a (act of May 20, 1966 (80 Stat. 161)). Restated and recodified by act of Sept. 13, 1982 (96 Stat. 986).]

1-289

DISCOUNTS AND PURCHASES


Paper of Regional Agricultural Credit Corporation

Emergency Relief and Construction Act of July 21, 1932 (47 Stat. 713)
SECTION 201 * * *
(e) [Repealed]
[Subsection (e) (12 USC 1148(e)) was repealed by act of Dec. 20, 2018 (132 Stat. 4686).]

1-290

Special Drawing Right Certificates

Special Drawing Rights Act of June 19, 1968 (82 Stat. 188)
SECTION 4
(a) The Secretary of the Treasury is authorized to issue to the Federal Reserve banks, and such banks shall purchase, Special Drawing Right certificates in such form and in such denominations as he may determine, against any Special Drawing Rights held to the credit of the Exchange Stabilization Fund. Such certificates shall be issued and remain outstanding only for the purpose of financing the acquisition of Special Drawing Rights or for financing exchange stabilization operations. The amount of Special Drawing Right certificates issued and outstanding shall at no time exceed the value of the Special Drawing Rights held against the Special Drawing Rights certificates. The proceeds resulting from the issuance of Special Drawing Right certificates shall be covered into the Exchange Stabilization Fund.
(b) Special Drawing Right certificates owned by the Federal Reserve banks shall be redeemed from the resources of the Exchange Stabilization Fund at such times and in such amounts as the Secretary of the Treasury may determine.
[22 USC 286p. For other provisions dealing with the stabilization fund, see 1-421.]

1-291

EXEMPTION FROM LABOR MANAGEMENT RELATIONS ACT

Labor Management Relations Act of June 23, 1947 (61 Stat. 137)
SECTION 2 * * *
(2) The term “employer” includes any person acting as an agent of an employer, directly or indirectly, but shall not include the United States or any wholly owned Government corporation, or any Federal Reserve Bank, or any State or political subdivision thereof, or any person subject to the Railway Labor Act, as amended from time to time, or any labor organization (other than when acting as an employer), or anyone acting in the capacity of officer or agent of such labor organization.
[29 USC 152(2). As amended by acts of July 26, 1974 (88 Stat. 395) and Nov. 6, 1978 (92 Stat. 2678).]

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