[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: 31CFR240.8]

[Page 86-87]
 
                  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.  240.8  Reclamation of amounts of paid checks.

    (a) If, after making final payment in accordance with Sec.  240.6, 
Treasury determines that any guarantor has breached a presentment 
guarantee listed in Sec.  240.4, the guarantor shall be liable to 
Treasury for the full amount of the check payment. Treasury may reclaim 
the amount of the check payment from any such guarantor prior to:
    (1) The end of the 1-year period beginning on the date that a check 
is processed for payment by a Federal Reserve Processing Center; or
    (2) The expiration of the 180-day period beginning on the close of 
the period described in paragraph (a)(1) of this section if a timely 
claim under 31 U.S.C. 3702 is presented to the certifying agency.
    (b) Treasury will not reclaim on a check that bears a forged or 
unauthorized drawer's signature unless it has evidence that the 
reclamation debtor had knowledge of the forged or unauthorized drawer's 
signature.
    (c) Treasury will not reclaim on a counterfeit check unless the 
reclamation debtor has failed to make all reasonable efforts to ensure 
that a check

[[Page 87]]

is an authentic check and not a counterfeit check. Guidance on the key 
security features found on U.S. Treasury checks is available on the FMS 
website at: http://www.fms.treas.gov/checkclaims/check--security--
new.pdf. Institutions may contact the FMS Questioned Documents Branch at 
(202) 874-7640 for additional information about these security features 
or to request training.
    (d) Reclamation debts are due to be paid upon receipt of the 
reclamation by the reclamation debtor. Interest, penalties, and 
administrative costs associated with unpaid balances will accrue as 
follows:
    (1) Interest. Treasury will assess interest on the unpaid principal 
of the reclamation debt beginning on the 61st day following the 
reclamation date, and will calculate interest based on the rate 
published annually by Treasury in accordance with 31 U.S.C. 3717. 
Interest will continue to accrue until the full amount of the 
reclamation is paid or Treasury determines that payment is not required.
    (2) Penalties. Treasury will assess a penalty beginning on the 91st 
day following the reclamation date. The penalty will be assessed in 
accordance with 31 U.S.C. 3717 on the unpaid principal of the 
reclamation debt, and will continue to accrue until the full amount of 
the reclamation debt is paid or Treasury determines that payment is not 
required.
    (3) Administrative costs. Treasury will assess administrative costs 
associated with the unpaid reclamation debt beginning on the 61st day 
following the reclamation date. Administrative costs will continue to 
accrue until the full amount of the reclamation debt is paid or Treasury 
determines that payment is not required.
    (e) If Treasury is unable to fully collect a reclamation debt from a 
reclamation debtor, after pursuing all appropriate means of collection 
(including, but not limited to, administrative offset in accordance with 
Sec.  240.10 and Treasury Check Offset in accordance with Sec.  240.11), 
Treasury will discharge the unpaid reclamation debt. See 31 CFR 903.5 
(Discharge of indebtedness; reporting requirements). Treasury or the 
certifying agency will report the amount of the unpaid reclamation debt 
to the Internal Revenue Service in accordance with the requirements of 
26 U.S.C. 6050P and 26 CFR 1.6050P-1.