[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: 31CFR240.4]

[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 
 
Sec.  240.4  Presentment guarantees.

    The guarantors of a check presented to the Treasury for payment are 
deemed to guarantee to the Treasury all of the following:
    (a) Indorsements. That all prior indorsements are genuine, whether 
or not an express guarantee is placed on the check. When the first 
indorsement has been made by one other than the payee personally, the 
presenting bank and the indorsers are deemed to guarantee to the 
Treasury, in addition to other guarantees, that the person who so 
indorsed had unqualified capacity and authority to indorse the check on 
behalf of the payee.
    (b) Alterations. That the check has not been materially altered.
    (c) Drawer's signature. That the guarantors have no knowledge that 
the signature of the drawer is forged or unauthorized.
    (d) Authenticity. That the guarantors have made all reasonable 
efforts to ensure that a check is an authentic Treasury check, not a 
counterfeit check.
    (e) Electronic check. If the check is an electronic check, that--
    (1) The check accurately represents all of the information on the 
front and back of the original or substitute check that was truncated 
and meets the technical requirements for sending electronic items to a 
Federal Reserve Bank as set forth in the Federal Reserve Banks' 
operating circulars;
    (2) Treasury will not receive presentment of, or otherwise be 
charged for, the electronic check, the original check, or a substitute 
check (or a paper or electronic reproduction of any of the foregoing) 
such that Treasury will be asked to make payment based on a check it 
already has paid; and
    (3) Treasury's receipt of the electronic check instead of the 
original or substitute check will not result in the loss of Treasury's 
ability to determine whether the check contains a material defect or 
alteration.
    (f) Substitute check. If the check is a substitute check, that the 
guarantors make the warranties set forth at 12

[[Page 85]]

CFR 229.52(a)(1) and (2) and the indemnity set forth at 12 CFR 229.53.