[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: 31CFR240.3]

[Page 82]
 
                  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. 240.3  Limitations on payment.

    (a) As a general rule,
    (1) The Commissioner shall not be required to pay a Treasury check 
issued on or after October 1, 1989 unless it is negotiated to a 
financial institution within 12 months after the date on which the check 
was issued; and
    (2) The Commissioner shall not be required to pay a Treasury check 
issued before October 1, 1989 unless it is negotiated to a financial 
institution no later than October 1, 1990.
    (b) All checks drawn on the United States Treasury and issued on or 
after October 1, 1989 shall bear a legend, stating ``Void After One 
Year.'' The legend is notice to payees and indorsers of a general 
limitation on the payment of Treasury checks. The legend, or the 
inadvertent lack thereof, does not limit, or otherwise affect, the 
rights of the Commissioner under the law.
    (c) The Treasury shall have the usual right of a drawee to examine 
checks presented for payment and refuse payment of any checks. The 
Treasury shall have a reasonable time to make such examination.
    (d) Checks shall be deemed to be paid by the United States Treasury 
only after first examination has been fully completed.
    (e) If the Treasury is on notice of a question of law or fact about 
whether a Treasury check is properly payable when the check is presented 
for payment, the Commissioner may defer payment until the Comptroller 
General settles the question.