[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: 31CFR240.13]

[Page 87-88]
 
                  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. 240.13  Checks issued to incompetent payees.

    (a) Classes of checks which may be indorsed by guardian or 
fiduciary. Where the payee of a check of any class listed in 
Sec. 240.13(a) has been declared incompetent:
    (1) If a check is indorsed by a legal guardian or other fiduciary, 
such legal guardian or fiduciary shall include, as a part of the 
indorsement, an indication of the capacity in which the legal guardian 
or fiduciary is indorsing. An example would be: ``John Jones by Mary 
Jones, guardian of John Jones.'' When a check indorsed in this fashion 
is presented for payment by a bank, it will be paid by the Treasury 
without submission to the Treasury of documentary proof of the authority 
of the guardian or other fiduciary, with the understanding that evidence 
of such claimed authority to indorse may be required by the Treasury in 
the event of a dispute.
    (2) If a guardian has not been or will not be appointed, and if the 
check:
    (i) Was issued in payment of goods and services, tax refunds or 
redemption of currency, it shall be forwarded for advice to the 
certifying agency; or

[[Page 88]]

    (ii) Was issued in payment of principal or interest on U.S. 
securities, it shall be forwarded to the Bureau of the Public Debt, 
Division of Customer Service, P.O. Box 426, Parkersburg, WV 26106.
    (b) Classes of checks which may not be indorsed by guardian or 
fiduciary. Where the payee of a check of any other class has been 
declared incompetent, the check shall not be indorsed by a guardian or 
other fiduciary. The check shall be returned to the Government agency 
which certified the payment, with information as to the incompetency of 
the payee and submission of documentary evidence showing the appointment 
of the guardian or other explanation in order that a replacement check, 
and others to be issued subsequently, may be drawn in favor of the 
guardian.

[54 FR 35642, Aug. 29, 1989, as amended at 54 FR 46728, Nov. 7, 1989. 
Redesignated and amended at 67 FR 36518, May 24, 2002]