§3343. Check forgery insurance fund
(a) The Department of the Treasury has a special deposit revolving fund, the "Check Forgery Insurance Fund". Amounts may be appropriated to the Fund. 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-
(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;
(3) the payee or special endorsee has not participated in any part of the proceeds of the negotiation or payment; and
(4) recovery from the forger, a transferee, or a party on the check after the forgery has been or may be delayed or unsuccessful.
(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. 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) 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.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 3343(a) | 31:561. | Nov. 21, 1941, ch. 489, §§1–3, |
| 3343(b) | 31:562. | |
| 31:563a(1st sentence). | Nov. 21, 1941, ch. 489, |
|
| 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). |
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.