
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC3126]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
                         CHAPTER 31--PUBLIC DEBT
 
                      SUBCHAPTER II--ADMINISTRATIVE
 
Sec. 3126. Losses and relief from liability related to redeeming 
        savings bonds and notes
        
    (a) Under regulations prescribed by the Secretary of the Treasury, a 
loss resulting from a payment related to redeeming a savings bond or 
savings note shall be replaced out of the fund established by section 2 
of the Government Losses in Shipment Act (40 U.S.C. 722). A Federal 
reserve bank, a paying agent allowed to make payments in redeeming a 
bond or note, or an officer or employee of the Department of the 
Treasury is relieved from liability to the United States Government for 
the loss when the Secretary decides that the loss did not result from 
the fault or negligence of the bank, paying agent, officer, or employee. 
The Secretary shall relieve the bank, agent, officer, or employee from 
liability when the Secretary decides that written notice of liability or 
potential liability has not been given to the bank, agent, officer, or 
employee by the Government within 10 years from the date of the 
erroneous payment. However, the Secretary may not relieve a paying agent 
of an assumed unconditional liability to the Government.
    (b) Section 3 of the Government Losses in Shipment Act (40 U.S.C. 
723) (related to finality of decisions of the Secretary) applies to a 
decision of the Secretary made under this section. A recovery or 
repayment of a loss for which replacement is made out of the fund shall 
be credited to the fund and is available for the purposes for which the 
fund was established.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 946.)

                                          Historical and Revision Notes
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---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
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---------------------------------
3126(a)..............................  31:757c(i)(1st-4th sentences).  Sept. 24
, 1917, ch. 56, 40 Stat. 288,
                                                                        Sec.  2
2(i)(1st-6th sentences); added
                                                                        Apr. 11
, 1943, ch. 52, Sec.  3, 57 Stat.
                                                                        63; res
tated Apr. 3, 1945, ch. 51, Sec.
                                                                        3, 59 S
tat. 47; Sept. 22, 1959, Pub. L.
                                                                        86-346,
 Sec.  103, 31 Stat. 622; Oct.
                                                                        17, 196
8, Pub. L. 90-595, Sec.  2, 82
                                                                        Stat. 1
155.
3126(b)..............................  31:757c(i)(5th, 6th
                                        sentences).
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---------------------------------

    In subsection (a), the words ``qualified'' and ``authorized or'' are 
omitted as surplus. The words ``officer or employee of the Department of 
the Treasury'' are substituted for ``Treasury of the United States'' and 
``Treasurer'' because of the source provisions restated in section 321 
of the revised title and for consistency with other titles of the United 
States Code. The text of 31:757c(i)(3d sentence) is omitted as surplus 
because of 39:410. The words ``under regulations prescribed by him'' are 
omitted as unnecessary.

                  Section Referred to in Other Sections

    This section is referred to in sections 331, 3106 of this title.
