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:
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.