TN 31 (03-17)

GN 02401.055 Policies on Miscellaneous Check Situations

A. Negotiability of Department of the Treasury (Treasury) checks

Prior to October 1, 1989, there was no time limit on the negotiability of a Treasury check. Effective October 1, 1989, the period for the negotiation of checks changed. For limited payability information, see GN 02401.901. For nonreceipt claims with limited payability involved, see GN 02401.902. To determine how to process allegations of nonreceipt involving limited payability, see GN 02401.903.

B. Financial institution liability when a check contains a special legend

Checks payable to representative payees use the term “for” to deter payment misuse. The financial institution (FI) is not liable if the payee misuses cashed checks if the FI has no knowledge of the payee’s intended misuse. In response to questions regarding liability, refer the FI to the Comptroller General's Decision B-6875, MARCH 22, 1940, 19 COMP. GEN. 806. The FI should contact Treasury if they need further assurance.

C. References

  • GN 02401.901 Limited Payability – Policy for Title II and Title XVI

  • GN 02401.902 Nonreceipt Alleged Timely and Check in Limited Payability Status

  • GN 02401.903 Allegations of Nonreceipt Not Filed Timely


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202401055
GN 02401.055 - Policies on Miscellaneous Check Situations - 03/09/2017
Batch run: 03/09/2017
Rev:03/09/2017