31 U.S.C. § 3342 — Check cashing and exchange transactions

Page 252 TITLE 31—MONEY AND FINANCE § 3342 charging the same in his account’’ for clarity and con- sistency in the chapter. In subsection (b), the words ‘‘from office’’ are omitted as unnecessary. § 3342. Check cashing and exchange transactions (a) A disbursing official of the United States Government may— (1) cash and negotiate negotiable instru- ments payable in United States currency or currency of a foreign country; (2) exchange United States currency, coins, and negotiable instruments and currency, coins, and negotiable instruments of foreign countries; and (3) cash checks drawn on the Treasury to ac- commodate United States citizens in a foreign country, but only if— (A) satisfactory banking facilities are not available in the foreign country; and (B) a check is presented by the payee who is a United States citizen. (b) A disbursing official may act under sub- section (a)(1) and (2) of this section only for the following: (1) An official purpose. (2) Personnel of the Government. (3) A dependent of personnel of the Govern- ment, but only— (A) at a United States installation at which adequate banking facilities are not available; and (B) in the case of negotiation of negotiable instruments, if the dependent’s sponsor au- thorizes, in writing, the presentation of ne- gotiable instruments to the disbursing offi- cial for negotiation. (4) A veteran hospitalized or living in an in- stitution operated by an agency. (5) A contractor, or personnel of a con- tractor, carrying out a Government project. (6) Personnel of an authorized agency not part of the Government that operates with an agency of the Government. (7) A Federal credit union (as defined in sec- tion 101(1) of the Federal Credit Union Act (12 U.S.C. 1752(1))) that at the request of the Sec- retary of Defense is operating on a United States military installation in a foreign coun- try, but only if that country does not permit contractor-operated military banking facili- ties to operate on such installations. (8) A member of the military forces of an al- lied or coalition nation who is participating in a combined operation, combined exercise, or combined humanitarian or peacekeeping mis- sion with the Armed Forces of the United States, but— (A) only if— (i) such disbursing official action for members of the military forces of that na- tion is approved by the senior United States military commander assigned to that operation, exercise, or mission; and (ii) that nation has guaranteed payment for any deficiency resulting from such dis- bursing official action; and (B) in the case of negotiable instruments, only for a negotiable instrument drawn on a financial institution located in the United States or on a foreign branch of such an in- stitution. (c)(1) An amount held by the disbursing offi- cial that is available for expenditure may be used to carry out subsection (a) of this section with the approval of the head of the agency hav- ing jurisdiction over the amount. (2) The head of an agency having jurisdiction over a disbursing official may offset, within the same fiscal year, a deficiency resulting from a transaction under subsection (a) of this section with a gain from a transaction under subsection (a). A gain in the account of a disbursing official not used to offset deficiencies under subsection (a) shall be deposited in the Treasury as mis- cellaneous receipts. (3) The amount of any deficiency resulting from cashing a check for a dependent under sub- section (b)(3), including any charges assessed against the disbursing official by a financial in- stitution for insufficient funds to pay the check, may be offset from the pay of the dependent’s sponsor. (4) Amounts necessary to adjust for defi- ciencies in the account of a disbursing official because of transactions under subsection (a) of this section are authorized to be appropriated. (d) The Secretary of the Treasury and, with the approval of the Secretary, the head of an agency having jurisdiction over a disbursing of- ficial, may issue regulations to carry out this section. However, under conditions the Sec- retary decides are necessary, the Secretary may delegate to the head of an agency the authority to issue regulations applying to a disbursing of- ficial that is an officer or employee of the agen- cy. (e) Regulations prescribed under subsection (d) shall include regulations that define the terms ‘‘dependent’’ and ‘‘sponsor’’ for the purposes of this section. In the regulations, the term ‘‘de- pendent’’, with respect to a member of a uni- formed service, shall have the meaning given that term in section 401 of title 37. (f) With respect to automated teller machines on naval vessels, the authority of a disbursing official of the United States Government under subsection (a) also includes the following: (1) The authority to provide operating funds to the automated teller machines. (2) The authority to accept, for safekeeping, deposits and transfers of funds made through the automated teller machines. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 957; Pub. L. 104–106, div. A, title X, § 1090, Feb. 10, 1996, 110 Stat. 459; Pub. L. 104–201, div. A, title X, § 1011, Sept. 23, 1996, 110 Stat. 2635; Pub. L. 106–65, div. A, title III, § 372, Oct. 5, 1999, 113 Stat. 580; Pub. L. 108–136, div. A, title XII, § 1224, Nov. 24, 2003, 117 Stat. 1653.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3342(a) ..... 31:492a(less 1st sen- tence words be- tween 2d–7th com- mas, last sen- tence). Dec. 23, 1944, ch. 716, §§ 1–3, 58 Stat. 921; restated June 16, 1953, ch. 115, 67 Stat. 61. 3342(b) ..... 31:492a(1st sentence words between 2d–7th commas). Page 253 TITLE 31—MONEY AND FINANCE § 3343 1 So in original. Probably should be ‘‘endorsee’’. HISTORICAL AND REVISION NOTES—CONTINUED Revised Section Source (U.S. Code) Source (Statutes at Large) 3342(c)(1) 31:492a(last sen- tence). 3342(c)(2), (3). 31:492b. 3342(d) ..... 31:492c. In the section, the words ‘‘disbursing official’’ are substituted for ‘‘disbursing officers’’ for clarity and consistency in the revised title. In subsection (a), the words ‘‘negotiable instruments’’ are substituted for ‘‘checks, drafts, bills of exchange, and other instruments’’ for clarity and consistency. Be- fore clause (1), the words ‘‘Subject to regulations pro- mulgated pursuant to sections 492a–492c of this title’’ are omitted as unnecessary. In clause (3), before sub- clause (A), the words ‘‘disbursing officers in foreign countries are also authorized . . . to’’ are omitted be- cause of the restatement. The word ‘‘Treasury’’ is sub- stituted for ‘‘Treasurer of the United States’’ 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). The words ‘‘person who is’’ are omitted as surplus. In subclause (B), the word ‘‘payee’’ is substituted for ‘‘person to whose order they are drawn’’ to eliminate unnecessary words. The words ‘‘who is a United States citizen’’ are added for clarity. Subsection (b), before clause (1), is added because of the restatement. In clause (2), the words ‘‘the accom- modation of’’ are omitted as surplus. The word ‘‘per- sonnel’’ is substituted for ‘‘members of the Armed Forces and civilian personnel’’ to eliminate unneces- sary words and for consistency in the revised title and with other titles of the United States Code. In clause (3), the words ‘‘of the Armed Forces of the United States . . . institutions operated by the Veterans’ Ad- ministration and other’’ are omitted as surplus. In subsection (c)(2), the words ‘‘For the purposes of this section’’ are omitted because of the restatement. The words ‘‘in the accounts of such disbursing officers’’ are omitted as unnecessary. The words ‘‘resulting from a transaction under subsection (a) of this section’’ are added for clarity. The words ‘‘not used to offset defi- ciencies from transactions under subsection (a)’’ are substituted for ‘‘resulting from operations permitted by sections 492a to 492c of this title’’ for clarity and consistency. Subsection (c)(3) is substituted for 31:492b(2d sen- tence) to eliminate unnecessary words and for consist- ency in the revised title and with other titles of the Code. In subsection (d), the words ‘‘rules and . . . governing the disbursing officers under their respective jurisdic- tions, as may be deemed necessary or proper . . . the purposes of’’ are omitted as surplus. The words ‘‘under conditions the Secretary decides are necessary’’ are substituted for ‘‘subject to such terms and conditions as he may prescribe’’ for clarity and consistency. The words ‘‘and exercise the function of disbursement pur- suant to a delegation by the Secretary of the Treas- ury’’ are omitted as unnecessary. Editorial Notes AMENDMENTS 2003—Subsec. (b). Pub. L. 108–136, § 1224(b)(1), sub- stituted ‘‘only for the following:’’ for ‘‘only for—’’ in introductory provisions. Subsec. (b)(1). Pub. L. 108–136, § 1224(b)(2), (5), sub- stituted ‘‘An’’ for ‘‘an’’ and period for semicolon at end. Subsec. (b)(2). Pub. L. 108–136, § 1224(b)(3), (5), sub- stituted ‘‘Personnel’’ for ‘‘personnel’’ and period for semicolon at end. Subsec. (b)(3) to (5). Pub. L. 108–136, § 1224(b)(4), (5), substituted ‘‘A’’ for ‘‘a’’ and period for semicolon at end. Subsec. (b)(6). Pub. L. 108–136, § 1224(b)(3), (6), sub- stituted ‘‘Personnel’’ for ‘‘personnel’’ and period for ‘‘; or’’. Subsec. (b)(7). Pub. L. 108–136, § 1224(b)(4), (7), sub- stituted ‘‘A’’ for ‘‘a’’ and ‘‘1752(1)))’’ for ‘‘1752(1))’’. Subsec. (b)(8). Pub. L. 108–136, § 1224(a), added par. (8). 1999—Subsec. (f). Pub. L. 106–65 added subsec. (f). 1996—Subsec. (b)(3). Pub. L. 104–201, § 1011(1), sub- stituted a semicolon for the period at end. Pub. L. 104–106, § 1090(a)(2), added par. (3). Former par. (3) redesignated (4). Subsec. (b)(4) to (6). Pub. L. 104–106, § 1090(a)(1), redes- ignated pars. (3) to (5) as (4) to (6), respectively. Subsec. (b)(7). Pub. L. 104–201, § 1011(2)–(4), added par. (7). Subsec. (c)(3), (4). Pub. L. 104–106, § 1090(b), added par. (3) and redesignated former par. (3) as (4). Subsec. (e). Pub. L. 104–106, § 1090(c), added subsec. (e). § 3343. Check forgery insurance fund (a) The Department of the Treasury has a spe- cial deposit revolving fund, the ‘‘Check Forgery Insurance Fund’’. Necessary amounts are here- after appropriated to the Fund out of any mon- eys 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 sec- tion. (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— (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 par- ticipated in any part of the proceeds of the ne- gotiation 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 au- thorizing agencies for any payment that the Secretary determines would otherwise have been payable from the Fund, and may reimburse cer- tifying or authorizing agencies with amounts re- covered because of payee nonentitlement. How- ever, currency of a foreign country recovered be- cause 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.