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TREASURY CHECK PROCEDURES FOR CUs
updated 07/14/14 01:58 PM
Special Rules Apply
A Treasury check, more than any other type of check, calls for special attention regarding proper endorsement of this monetary instrument. They are subject to the next-day availability rule under 12 C.F.R. Part 229 (Regulation CC), and are a favorite target of thieves and fraudsters.

Although the California Uniform Commercial Code generally covers check endorsements, Treasury checks are governed by 31 C.F.R. §240.4, which addresses endorsement and presentment guarantees.

Endorsement and Presentment Guarantees
A credit union presenting a check to the Treasury Department guarantees to the Treasury all of the following:

  • That all prior endorsements are genuine, whether or not an express guarantee is placed on the check.
  • When the first endorsement has been made by a third party, the presenting credit union and the endorsers are deemed to guarantee to the Treasury that the person who endorsed it had unqualified capacity and authority to endorse the check on behalf of the payee.
  • That the check has not been materially altered.
  • That the guarantors have no knowledge that the signature of the drawer was forged or unauthorized.
  • That the guarantors have made all reasonable efforts to ensure that a check is not a counterfeit.

Credit unions should take care to ensure their staff is appropriately trained to secure proper endorsement of Treasury checks, and to identify abnormalities in these negotiable instruments that may indicate an alteration to, or counterfeiting, of the check.

Click here to read the entire Research and Information column on Page 19 within the June/July edition of Credit Union Digest!

 
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CUs ACROSS THE GLOBE HONOR ICU DAY updated 10/16/14 10:26 AM
Today Marks The 67th Celebration
Credit unions around world are coming together in honor of International Credit Union Day—a celebration that started back in 1948 to reflect upon the industry’s rich history and to promote its achievements and impact. It is also a time to honor those who have dedicated themselves to movement and show appreciation to all credit union employees and members.

ECONOMY: JOBS AND HOUSING IN FOCUS updated 10/14/14 09:55 PM
Past Performance No Guarantee of Future
Jobs and housing drive many components of the credit union business. So how are we faring in California and Nevada?

CONGRESSMAN SHERMAN ON 'REACH' PANEL updated 10/14/14 09:38 AM
Will Discuss Supplemental Capital
Rep. Brad Sherman, D-CA, will join a panel of credit union experts to discuss supplemental capital for credit unions at this year’s 2014 Annual Meeting and Convention—REACH—adding to the exciting line-up of speakers and breakout sessions.

EXCITEMENT BUILDS FOR 'REACH 2014' updated 10/14/14 09:01 AM
New Special Guest Announced
REACH 14, the California and Nevada Credit Union Leagues' highly-anticipated Annual Meeting and Convention, is quickly approaching! This year will be one for the books. After all, the one and only Earvin “Magic” Johnson will be there!