Regulations for Electronic Funds Transfer do not apply to checks.
Introduction: This section cites the laws and regulations governing the check reclamation process.
31 U.S.C. 3712
Establishes FMS's right to demand a refund from a presenting financial institution when, after the check is paid, forgery is established or the payee's entitlement stopped with his/her death.
Establishes Treasury Check Offset.
31 U.S.C. 3701-3720E
Establishes the government's right to collect debts using various collection tools, including offset.
Establishes the rates at which a federal agency must assess interest, penalties, and administrative fees on delinquent debts.
31 CFR 240
Establishes the process by which FMS will directly debit a financial institutions federal reserve master account for the full amount of the reclamation if not paid or protested by the 30th calendar day from the reclamation date.
Establishes the process by which FMS will add interest, penalties and administrative fees to delinquent reclamation debts.
Establishes the process by which FMS will refer reclamation debts for collection by offset.
Establishes that FMS will take such action as may be necessary to collect delinquent reclamation debts.
4 CFR Part 102
Standards for federal agencies when collecting by offset.
Rates at which a federal agency must assess interest, penalties and administrative fees.
Limited Payability: The Competitive Equality Banking Act of 1987 (Public Law 100-86), referred to as Limited Payability, significantly reduced the time period for…
Negotiating U.S. Treasury checks to one year from the check issue date.
Filing non-receipt claims to one year from the check issue date.
Initiating a reclamation action against the presenting financial institution to one and a half years from the date the check is paid.
Exception: In cases of deceased payees, reclamation action must begin within one year from the date the check is paid.
November 09, 2012