Treasury determines the liability of the FI, based on the factors in this section
at GN 02408.625B., and calculates the amount due from the FI. We do not need to calculate the liability
amount. This section helps explain how the limited liability amount is determined.
If the FI meets all qualifications for limiting its liability, the amount it is liable
to pay is the total of:
the amount in the account at the time the FI received the report of death, and
the amount of the post-death benefit payments received within 45 days after the death.
The limited liability amount cannot be more than the total of all benefit payments
received after death.
EXAMPLE: Four payments of $200 each arrived after the death, for a total of $800, which was
the amount on the reclamation. Two of the payments (totaling $400) had arrived within
45 days after the death. The FI, which had first learned of the death when it received
the reclamation, responds within 60 days and sends Treasury the $300 balance in the
account. The limited liability amount is $700 ($300 account balance plus $400 from
payments received within 45 days after the death).
Several examples of calculations for limiting the FI’s liability are in the Reclamations
chapter of Treasury’s “Green Book” at https://www.fiscal.treasury.gov/fsreports/ref/greenBook/greenbook_home.htm