An RDFI may qualify to limit its liability by full compliance with the regulations if it:

• had no actual or constructive knowledge (see Note) of the death at the time of the deposit of any post-death benefit payments.
• returns all post-death benefit payments it receives after it learns of the death.
• responds to the Notice of Reclamation (reclamation) so that it is received by the Government Disbursing Office within 60 days of the date on the reclamation.

Note: "Constructive knowledge" of the death means that the RDFI would have learned of the death if it had followed commercially reasonable business practices. For example, receiving notice of death in the mail demonstrates "constructive knowledge," even if the RDFI fails to open the notice received.

Exception to Liability Rule