Appendix A to Part 231 - Sample Operating Agreement
32:2.1.1.1.31.5.1.1.11 : Appendix A
Appendix A to Part 231 - Sample Operating Agreement Sample
Operating Agreement Between Military Installations and Financial
Institutions Note:
The following operating agreement template identifies general
arrangement and content. Content of the actual operating agreement
may vary according to the circumstances of each installation.
Operating Agreement Between (Name of Installation), (State or
Country Installation Located) and (Name of Financial Institution).
This Agreement is made and entered into this day by and between
the installation commander of (name of installation) in his or her
official capacity as installation commander, hereinafter referred
to as the “commander” and the (name of financial institution),
having its principal office at (location of home office)
hereinafter referred to as the “financial institution,” together
hereinafter referred to as “the parties.” Whereas the commander and
the financial institution enter into this Operating Agreement upon
the mutual consideration of the promises, covenants, and agreements
hereinafter contained.
1. The parties understand and agree that this Agreement shall in
no way modify, change, or alter the terms and conditions of Lease
Number (number of lease) covering the use of real property
described therein, and this Agreement shall continue, subject to
the termination provisions herein-after set forth, during the terms
of said lease and any extensions thereof. In the case of a banking
institution operating a military banking facility (MBF) overseas,
this agreement will not change the conditions of the contract
between the banking institution and the Department of Defense.
2. The financial institution agrees to operate a (federally or
state) chartered office on-base in accordance with the policies and
procedures set forth in DoD Directive 1000.11, and Volume 5,
Chapter 34, of the DoD 7000.14-R (as codified in the Code of
Federal Regulations (CFR) at 32 CFR parts 230 and 231,
respectively); and, in addition for the Overseas Military Banking
Program (OMBP), the policies and procedures set forth in the
applicable DoD contract. The hours of operations shall be between
(hour office opens) and (hour office closes), and on the following
days (weekdays office open), except on government holidays when the
financial institution may be closed. The Program Office for the
OMBP shall notify the commander of any changes to the DoD
contract.
3. The financial institution shall provide the following
services:
a. Services for Individuals.
(1) Demand (checking) account services.
(2) Cashing personal checks and government checks for
accountholders.
(3) Maintaining savings accounts and (any other interestbearing
accounts).
(4) Selling official checks, money orders, and traveler's
checks.
(5) Selling and redeeming United States savings bonds.
(6) Providing direct deposit service.
(7) Loan services.
(8) Electronic banking (i.e., automated teller machines,
internet banking).
b. Services for disbursing officers.
(1) Furnishing cash (if the financial institution's terms for
doing so is consistent with sound management practices).
(2) Accepting deposits for credit to the Treasury General
Account (where the financial institution has entered into an
agreement with the Department of the Treasury).
c. Services for nonappropriated fund instrumentalities and
private organizations.
(1) Demand (checking) account services, including wire
transfers.
(2) Savings accounts and nonnegotiable certificates of deposit
or other interestbearing accounts offered by the banking
institution.
(3) Currency and coin for change.
4. Service charges shall be as follows:
a. Service for individuals.
(1) No fees shall be charged to individuals for the services
listed in subparagraphs 3.a.(2), and 3.a.(5), above, except for
subparagraph 3.a.(2), wherein checks drawn on other financial
institutions may be treated in accordance with the financial
institution's established policy. Any charge to cash a government
check shall not exceed that typically charged by financial
institutions in the vicinity of the installation. Fees assessed to
accountholders and nonaccountholders for use of automated teller
machines shall be the customary service charges of the financial
institution or those negotiated for base personnel per the attached
schedule.
(2) Checking and savings accounts. Fees for individual checking
and savings accounts shall be the customary service charges of the
financial institution or those negotiated for base personnel per
the attached schedule.
(3) Sale of official checks, money orders, traveler's checks and
other types of financial paper. Charges for these services shall be
the customary charges of the financial institution operating the
on-base office.
b. Service for Disbursing Officers. No charge shall be
made for the services listed in subparagraph 3.b.(2), above.
Compensation to the financial institution shall be per its separate
agreement with the Department of the Treasury. Charges, if any, for
the services stated in subparagraph 3.b.(1) shall be as locally
negotiated with the financial institution.
c. Nonappropriated Fund Instrumentalities and Private
Organizations. State the charges or refer to a schedule of
charges for funds and organizations that do not participate in a
central banking program. For those activities participating in a
central banking program, determine the compensation to the
financial institution by account analysis.
5. It is agreed that the financial institution shall:
a. Notify the commander or designated representative of any
proposed changes to the attached schedule of fees and services at
least 30 days prior to implementation.
b. Follow the requirements in Volume 5, Chapter 34, of DoD
7000.14-R, as codified in the Code of Federal Regulations (CFR),
and any changes thereto.
c. Comply with Department of the Treasury requirements for
establishment and operation of a Treasury General Account where the
financial institution agrees to act as a depository for government
funds.
d. Absolve the (Military Service) and its representatives of
responsibility or liability for the financial operation of the
financial institution; and for any loss (including losses due to
criminal activity), expenses, or claims for damages arising from
financial institution operations.
e. Indemnify, and hold harmless the United States from (and
against) any loss, expense, claim, or demand, including attorney
fees, court costs, and costs of litigation, to which the government
may be subjected as a result of death, loss, destruction, or damage
in connection with the use and occupancy of (Military Service)
premises occasioned in whole or in part by officers, agents or
employees of the financial institution operating an office of the
financial institution.
f. Favorably respond, whenever feasible, to reasonable local
command requests for lectures and printed materials to support
consumer credit education programs, financial management program
and newcomer's briefings.
g. Prominently post in the lobby of the financial institution
the name, duty telephone number of the (Bank or Credit Union)
Liaison Officer.
h. Accept the government travel card in all on-base ATMs
operated by the financial institution.
i. Abide by the installation fire protection program, including
immediate correction of fire hazards noted by the installation fire
inspector during periodic fire prevention inspections.
6. The commander shall provide the following space and
support:
a. Space requirements for financial institution operations shall
be administered in accordance with the existing outgrant (i.e.,
lease, permit or license). (Show Number of Outgrant).
b. Utilities (i.e., electricity, natural gas or fuel oil, water
and sewage), heating and air conditioning, intrastation telephone
service, and custodial and janitorial services to include garbage
disposal and outdoor maintenance (such as grass cutting and snow
removal) on a reimbursable basis.
c. DoD housing and minor dependent education in overseas
locations for military banking facility (MBF) and credit union
personnel in accordance with §§ 231.6(c)(1)(i)(C), 231.6(c)(1)(D),
231.8(c)(2) and 231.8(c)(3).
7. Termination of this Agreement shall be consistent with the
termination provision of the real property lease and subpart A. The
Secretary of the (Military Department) shall have the right to
terminate this Agreement at any time. Any termination of the right
of the financial institution to operate on the installation shall
render this Agreement terminated without any applicable action by
the commander.
8. Any provision of this Agreement that is contrary to or
violates any laws, rules, or regulations of the United States, its
agencies, or the state of (state in which the financial institution
is located) that apply on federal installations shall be void and
have no force or effect; however, both parties to this Agreement
agree to notify the other party promptly of any known or suspected
continuing violation of such laws, rules, or regulations.
9. So long as this Agreement remains in effect, it shall be
reviewed jointly by the commander and the financial institution at
least once every 5 years to ensure compatibility with current DoD
issuances and to determine if any changes are required to the
Agreement.
In witness whereof, the commander, and the financial
institution, by their duly authorized office, have hereunto set
their hands this day of (month, day, year).
Financial Institution Official Installation Commander