[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: 31CFR240.8]

[Page 84-85]
 
                  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. 240.8  Offset.

    (a) If an item, and/or accrued interest relating to that item, 
remains unpaid for 120 days after the reclamation date and the 
presenting bank has been sent at least one monthly interest billing 
statement informing it that Treasury intends to collect that item by 
offset, Treasury may refer the matter to any Federal agency and request 
that agency to offset the indebtedness and other applicable charges 
against amounts otherwise owed by the Federal agency to the presenting 
bank. Monthly interest billing statements will be annotated to identify 
those specific items that are to be referred to an agency for offset.
    (b) If a bank wishes to make payment on an item referred to an 
agency for offset, it should contact Treasury at the address listed in 
Sec. 240.7(b) to reduce the possibility of a double collection. If an 
agency to which an indebtedness is

[[Page 85]]

referred in accordance with this paragraph is unable to effect offset in 
whole or in part, Treasury may then refer the debt to any other agency 
and request offset in accordance with this paragraph. Treasury 
designates each agency acting under this paragraph as its designee for 
the sole purpose of effecting offset. No such designee shall be liable 
to any party for any loss resulting from its action under this 
paragraph.
    (c) If Treasury is unable to collect an amount owed by use of the 
offset described in paragraph (a) of this section, Treasury shall take 
such action against the presenting bank as may be necessary to protect 
the interests of the United States, including Treasury Check Offset in 
accordance with Sec. 240.9 or referral to the Department of Justice.
    (d) If Treasury effects offset under this section and it is later 
determined that the presenting bank paid the amount of the reclamation 
and accrued interest thereon, or that a presenting bank which had timely 
filed a protest was not liable for the amount of the reclamation, 
Treasury shall promptly refund to the presenting bank the amount of its 
payment.

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