§3343 — Title 31 Money and Finance | U.S. Code

Summary

Creates a special Treasury fund called the Check Forgery Insurance Fund. Money is put into the fund from Treasury as needed and stays available until spent. The Treasury Secretary must pay the face amount of a Treasury check, with no interest, to the person named on the check or to a special endorsee or a depositary when three things are true: the check was lost or stolen without the payee’s fault; it was later cashed on a forged signature; and the payee did not take any of the money from that forged payment. (Payee = person the check is made out to. Special endorsee = someone whose endorsement is needed.) Money recovered from a forger or others must go back into the Fund. The Secretary can use the Fund to reimburse agencies that should have been paid from it, and foreign currency recovered is credited to the right account. The Secretary may waive rules to speed payments and may delegate duties to agency heads, who may pass them on to staff. The law still allows criminal or civil charges against forgers and does not remove liability of later holders to refund money or for endorsement warranties.

Title 31, §3343

Money and Finance — Source: USLM XML via OLRC

(a)The Department of the Treasury has a special deposit revolving fund, the “Check Forgery Insurance Fund”. Necessary amounts are hereafter appropriated to the Fund out of any moneys in the Treasury not otherwise appropriated, and shall remain available until expended to make the payments required or authorized under this section. The Fund consists of amounts—

(1)appropriated to the Fund; and

(2)received under subsection (d) of this section.

(b)The Secretary of the Treasury shall pay from the Fund to a payee or special endorsee of a check drawn on the Treasury or a depositary designated by the Secretary the amount of the check without interest if in the determination of the Secretary the payee or special endorse 11 So in original. Probably should be “endorsee”. establishes that—

(1)the check was lost or stolen without the fault of the payee or a holder that is a special endorsee and whose endorsement is necessary for further negotiation;

(2)the check was negotiated later and paid by the Secretary or a depositary on a forged endorsement of the payee’s or special endorsee’s name; and

(3)the payee or special endorsee has not participated in any part of the proceeds of the negotiation or payment.

(c)Notwithstanding section 1306 of this title, a check drawn on a designated depositary may be paid in the currency of a foreign country when the appropriate accountable official authorizes payment in that currency.

(d)The Secretary shall deposit immediately to the credit of the Fund an amount recovered from a forger or a transferee or party on the check. The Secretary may use amounts in the Fund to reimburse payment certifying or authorizing agencies for any payment that the Secretary determines would otherwise have been payable from the Fund, and may reimburse certifying or authorizing agencies with amounts recovered because of payee nonentitlement. However, currency of a foreign country recovered because of a forged check drawn on a designated depositary shall be credited to the Fund or to the foreign currency fund that was charged when payment was made under subsection (b) of this section to the payee or special endorsee.

(e)The Secretary may waive any provision of this section as may be necessary to ensure that claimants receive timely payments.

(f)Under such conditions as the Secretary may prescribe, the Secretary may delegate duties and powers of the Secretary under this section to the head of an agency. Consistent with a delegation from the Secretary under this subsection, the head of an agency may redelegate those duties and powers to officers or employees of the agency.

(g)This section does not relieve—

(1)a forger from civil or criminal liability; or

(2)a transferee or party on a check after the forgery from liability—

(A)on the express or implied warranty of prior endorsements of the transferee or party; or

(B)to refund amounts to the Secretary.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 3343(a)31:561.Nov. 21, 1941, ch. 489, §§ 1–3, 55 Stat. 777. 3343(b)31:562. 31:563a(1st sentence).Nov. 21, 1941, ch. 489, 55 Stat. 777, § 4; added Dec. 22, 1974, Pub. L. 93–539, § 1(b), 88 Stat. 1738. 3343(c)31:563a(2d sentence). 3343(d)31:563(words after 3d comma). 31:563a(last sentence). 3343(e)31:563(words before 3d comma). Subsection (a) is substituted for 31:561 for clarity and consistency in the revised title and with other titles of the United States Code and to eliminate unnecessary words. In subsection (b), the text of 31:563a(1st sentence) is omitted because of section 321 of the revised title. Before clause (1), the word “Secretary” is substituted for “Treasurer of the United States” before “is authorized and directed” in 31:562 because of the source provisions restated in section 321(c) of the revised title. The words “prior to reclamation” and “heretofore or hereafter” are omitted as unnecessary. The words “Treasury or a depositary designated by the Secretary” are substituted for “Treasurer of the United States” before “has been lost or stolen” because of the source provisions restated in section 321 of the revised title and Department of the Treasury Order 229 of January 14, 1974 (39 F.R. 2280) and for consistency in the revised title. The words “it is established” are omitted as unnecessary. In clause (2), the words “Secretary or a depositary” are substituted for “Treasurer” for consistency. In clause (3), the words “either directly or indirectly” are omitted as surplus. In subsection (c), the words “drawn on a designated depositary” are added because of the restatement. In subsection (d), the words “The Secretary shall deposit immediately to the credit of the Fund amounts recovered from a forger” are substituted for 31:563(words after 3d comma) to eliminate unnecessary words. The words “The liability and restoration provisions of section 563 of this title shall apply with respect to checks drawn on designated depositaries” in 31:563a(last sentence) are omitted as unnecessary because of the restatement. The words “because of a forged check drawn on a designated depositary” are added for clarity. The words “credited to” are substituted for “used, as required, to reimburse” for clarity and to eliminate unnecessary words. The word “payment” is substituted for “settlement” for consistency. The words “under subsection (b) of this section” are added for clarity. In subsection (e), the word “Secretary” is substituted for “Treasurer of the United States” because of the source provisions restated in section 321(c) of the revised title.

Editorial Notes

Amendments

1996—Subsec. (a). Pub. L. 104–134, § 31001(x)(3)(A), amended second sentence generally. Prior to amendment, second sentence read as follows: “Amounts may be appropriated to the Fund.” Subsec. (b). Pub. L. 104–134, § 31001(x)(3)(B)(i), inserted “in the determination of the Secretary the payee or special endorse establishes that” after “without interest if” in introductory provisions. Subsec. (b)(2) to (4). Pub. L. 104–134, § 31001(x)(3)(B)(ii)–(iv), inserted “and” at end of par. (2), substituted period for “; and” at end of par. (3), and struck out par. (4) which read as follows: “recovery from the forger, a transferee, or a party on the check after the forgery has been or may be delayed or unsuccessful.” Subsec. (d). Pub. L. 104–134, § 31001(x)(3)(C), inserted after first sentence “The Secretary may use amounts in the Fund to reimburse payment certifying or authorizing agencies for any payment that the Secretary determines would otherwise have been payable from the Fund, and may reimburse certifying or authorizing agencies with amounts recovered because of payee nonentitlement.” Subsecs. (e) to (g). Pub. L. 104–134, § 31001(x)(3)(D), (E), added subsecs. (e) and (f) and redesignated former subsec. (e) as (g).

Statutory Notes and Related Subsidiaries

Availability of Fund Pub. L. 108–447, div. H, title II, § 220(b), Dec. 8, 2004, 118 Stat. 3242, provided that: “The Check Forgery Insurance Fund (31 U.S.C. 3343) shall be available to fund amounts relating to the payment of items listed in 31 U.S.C. 3333(a)(1), as amended above [Pub. L. 108–447, § 220(a)(1)], prior to the enactment of this Act [Dec. 8, 2004].”

§3343 Check Forgery Insurance Fund