[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: 31CFR240.5]

[Page 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.  240.5  Limitations on payment; cancellation and distribution of proceeds 

of checks.

    (a) Limitations on payment. (1) Treasury shall not be required to 
pay any check that is not negotiated to a financial institution within 
12 months after the date on which the check was issued.
    (2) All checks 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 checks. The legend, or the inadvertent lack thereof, does 
not limit, or otherwise affect, the rights of Treasury under the law.
    (b) Cancellation and distribution of proceeds of checks. (1) Any 
check that has not been paid and remains outstanding for more than 12 
months after the issue date will be canceled by Treasury.
    (2) The proceeds from checks canceled pursuant to paragraph (b)(1) 
of this section will be returned to the payment certifying or 
authorizing agency for ultimate credit to the appropriation or fund 
account initially charged for the payment.
    (3) On a monthly basis, Treasury will provide to each agency that 
authorizes the issuance of checks a list of those checks issued for such 
agency which were canceled during the preceding month pursuant to 
paragraph (b)(1) of this section.