[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR240.10]

[Page 85-86]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 240--INDORSEMENT AND PAYMENT OF CHECKS DRAWN ON THE UNITED STATES TREASURY--Table of Contents
 
Sec. 240.10  Processing of checks.

    (a) Federal Reserve Banks. (1) Federal Reserve Banks shall cash 
checks for Government disbursing officers when such checks are drawn by 
the disbursing officers to their own order. Payment of such checks shall 
not be refused except for alteration or counterfeiting of the check, or 
forged signature of the drawer.
    (2) Federal Reserve Banks shall not be expected to cash Government 
checks presented directly to them by the general public.
    (3) As a depository of public funds, each Federal Reserve Bank 
shall:
    (i) Receive checks from its member banks, nonmember clearing banks, 
or other depositors, when indorsed by such banks or depositors who 
guarantee all prior indorsements thereon;
    (ii) Give immediate credit therefore in accordance with their 
current Time Schedules and charge the amount of

[[Page 86]]

the checks cashed or otherwise received to the account of the Treasury, 
subject to examination and payment by the United States Treasury;
    (iii) Forward payment records and copies of checks to Treasury; and
    (iv) Release the original checks to a designated Federal Records 
Center upon notification from Treasury. The Treasury shall return to the 
forwarding Federal Reserve Bank a photocopy of any check the payment of 
which is refused upon first examination. Federal Reserve Banks shall 
give immediate credit therefor in the United States Treasury's account, 
thereby reversing the previous charge to the account for such check. The 
Treasury authorizes each Federal Reserve Bank to release the original 
check to the endorser when payment is refused in accordance with 
Sec. 240.3(a).
    (b) Depositaries outside of the mainland of the United States. Banks 
outside of the mainland of the United States designated as depositaries 
of public money and permitted to charge checks to the General Account of 
the United States Treasury shall be governed by the operating 
instructions contained in the letter of authorization to them from 
Treasury and shall assume the obligations of presenting banks set forth 
in Secs. 240.5 and 240.6. Checks charged to the General Account of the 
United States Treasury along with the supporting credit voucher shall be 
shipped to the Federal Reserve Bank of Richmond. The Treasury shall 
return to the presenting depositary bank a photocopy of any check the 
payment of which is refused upon first examination. The depositary bank 
shall give immediate credit therefor in the General Account of the 
United States Treasury, thereby reversing the previous charge to the 
Account for such check. Treasury authorizes the Federal Reserve Bank of 
Richmond to return to the presenting depositary bank the original check 
when payment is refused in accordance with Sec. 240.3(a).

[54 FR 35642, Aug. 29, 1989. Redesignated at 67 FR 36518, May 24, 2002]