[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR240.1]

[Page 81]
 
                  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 
 
Sec.  240.1  Scope of regulations.

    (a) The regulations in this part prescribe the requirements for 
indorsement and the conditions for payment of checks drawn on the United 
States Treasury. These regulations also establish procedures for 
collection of amounts due the United States Treasury based on claims 
arising from the breach of presentment guarantees by presenting banks 
and other indorsers of Treasury checks when checks bearing material 
defects or alterations or forged disbursing officer (drawer) signatures 
are presented for payment and are paid.
    (b) Standards contained in this regulation supersede existing 
Federal common law to the extent that they are inconsistent with Federal 
common law rules relating to counterfeit checks. Under the provisions of 
this regulation, the risk of loss on certain counterfeit checks is 
placed on presenting banks and other indorsers unless Treasury fails to 
timely reclaim on a check payment in accordance with 31 U.S.C. 3712(a) 
and Sec.  240.8 of this regulation. Treasury will reclaim on counterfeit 
checks that are deemed paid under Sec.  240.6(d) of this regulation when 
a presenting bank or other indorser fails to make all reasonable efforts 
to ensure that a check is an authentic Treasury check.
    (c) Nothing in this regulation supercedes the rights or obligations 
of Treasury or any other person that are set forth in Regulation CC, 12 
CFR part 229, with respect to substitute checks, as defined therein.