
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC3343]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
            CHAPTER 33--DEPOSITING, KEEPING, AND PAYING MONEY
 
                      SUBCHAPTER III--MISCELLANEOUS
 
Sec. 3343. Check forgery insurance fund

    (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 \1\ 
establishes that--
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    \1\ So in original. Probably should be ``endorsee''.
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        (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.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 957; Pub. L. 104-134, title 
III, Sec. 31001(x)(3), Apr. 26, 1996, 110 Stat. 1321-377.)

                                          Historical and Revision Notes
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---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
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---------------------------------
3343(a)..............................  31:561.                         Nov. 21,
 1941, ch. 489, Secs.  1-3, 55
                                                                        Stat. 7
77.
3343(b)..............................  31:562.
                                       31:563a(1st sentence).          Nov. 21,
 1941, ch. 489, 55 Stat. 777,
                                                                        Sec.  4
; added Dec. 22, 1974, Pub. L. 93-
                                                                        539, Se
c.  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).
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---------------------------------

    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.


                               Amendments

    1996--Subsec. (a). Pub. L. 104-134, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 31001(x)(3)(D), (E), 
added subsecs. (e) and (f) and redesignated former subsec. (e) as (g).
