Indorsement and Payment of Checks Drawn on the United States Treasury

This document amends the rule governing the indorsement and payment of checks drawn on the United States Treasury and the remedies available when checks are lost or stolen and then negotiated by someone other than the intended payee. In instances where losses occur, Part 240 provides for the allocation of losses between the Federal Government and indorsers of the check. Part 240 also provides notice of how Treasury will collect debts owed by banks and other indorsers when they fail to pay claims arising under its terms.