[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: 31CFR240.11]

[Page 90]
 
                  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.  240.11  Treasury Check Offset.

    (a) If Treasury is unable to effect collection pursuant to 
Sec. Sec.  240.8, 240.9, or 240.10, of this part, Treasury will collect 
the amount of the reclamation debt through Treasury Check Offset. 
Treasury Check Offset occurs when, at the direction of the Treasury, a 
Federal Reserve Bank withholds, that is, offsets, credit from a 
presenting bank. The amount of credit offset is applied to the 
reclamation debt owed by the presenting bank. By presenting Treasury 
checks for payment, the presenting bank is deemed to authorize Treasury 
Check Offset.
    (b) If Treasury effects offset under this section and it is later 
determined that the presenting bank paid the reclamation debt in full, 
or that a presenting bank was not liable for the amount of the 
reclamation debt, Treasury will promptly refund to the presenting bank 
the amount of its overpayment. Treasury may refund the amount either by 
applying the amount to another reclamation debt in accordance with this 
part or other applicable law, or by returning the amount to the 
presenting bank.
    (c) Treasury Check Offset is used for the purpose of collecting debt 
owed by a presenting bank to the Federal Government. As a consequence, 
presenting banks shall not be able to use the fact that Treasury checks 
have not been paid as the basis for a claim against Treasury, a Federal 
Reserve Bank, or other persons or entities, including payees or other 
indorsers of checks, for the amount of the credit offset pursuant to 31 
U.S.C. 3712(e) and this section.
    (d) This section does not apply to a claim based upon a reclamation 
that has been outstanding for more than 10 years from the date of 
delinquency.