Indorsement and Payment of Checks Drawn on the U.S. Treasury Final Rule Summary

Updated 01/10/2024

This tool summarizes the recent Final Rule amending regulations governing the Payment of Checks Drawn on the U.S. Treasury:

  1. The Final Rule has the primary objective of enhancing the efficiency and accuracy of Treasury check payment processing.
  2. The Final Rule revises the current definition of “reasonable efforts” in 31 CFR 240 to include the requirement for financial institutions to wait for check return information within the time periods specified by Regulation CC.
  3. The expectation with the implementation of the Final Rule is that with the enhanced post-payment processing system, financial institutions will have expedited access to Treasury check return information to reduce the risk of erroneous payments, acceptance of duplicate presentations, altered payments, and counterfeit instruments, ultimately reducing their liability.

 

 

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