55224 Federal Register / Vol. 70, No. 181 / Tuesday, September 20, 2005 / Notices 

1 In this context, subsequently accepting a check 

for deposit pertains to the sequence of events by 

which a check is accepted for deposit by any 

number of depository institutions (after it is cashed 

by an individual) in order to present it to Treasury 

for payment. It does not refer to the depositing of 

a check by an individual. 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

Guidance on Cashing and Accepting 

for Deposit Federal Emergency 

Management Agency (FEMA) Disaster 

Assistance Checks and Government 

Benefit Checks Issued by the U.S. 

Treasury; Hurricane Katrina 

AGENCY: Financial Management Service, 

Fiscal Service, Treasury. 

SUMMARY: The Financial Management 

Service (FMS) is publishing additional 

guidance related to the cashing and 

accepting for deposit of U.S. Treasury 

checks for FEMA Disaster Assistance 

payments and Federal benefit payments 

(Treasury assistance and benefit 

checks), such as Social Security 

payments, to recipients who resided in 

areas affected by Hurricane Katrina. 

Depository institutions and retailers 

have experienced difficulty in 

confirming the identify of Hurricane 

Katrina evacuees seeking to cash 

Treasury checks. To encourage 

depository institutions and retailers to 

cash Treasury assistance and benefit 

checks for these individuals, FMS has 

established an interim policy to relieve 

depository institutions from liability in 

a reclamation action based on a forged 

or unauthorized indorsement. Under the 

interim policy, Treasury will relieve 

depository institutions from liability for 

cashing or subsequently accepting for 

deposit a Treasury assistance or benefit 

check bearing a forged or unauthorized 

indorsement, provided that the 

procedures set forth in the interim 

policy are followed. 

DATES: The interim policy is effective 

for any Treasury assistance or benefit 

check cashed on or after September 3, 

2005 and through November 14, 2005. 

ADDRESSES: You can download this 

notice at the following World Wide Web 

address: http://fms.treas.gov/ 

katrina_fedregister_fema.html. 

FOR FURTHER INFORMATION CONTACT: 

Ronald Cymbor, Director, Financial 

Processing Division, at 202 874–7913 or 

ronald.cymbor@fms.treas.gov; or Natalie 

H. Diana, Senior Counsel, at 202 874– 

6680 or natalie.diana@fms.treas.gov. 

SUPPLEMENTARY INFORMATION: 

Depository institutions and other 

entities that cash or subsequently accept 

for deposit 1 U.S. Treasury checks are 

generally liable to Treasury for the 

amount of a check cashed over a forged 

or unauthorized indorsement. 31 CFR 

part 240. In order to ensure that 

Treasury checks have been properly 

indorsed by the payee, depository 

institutions and retailers typically 

request certain standard forms of 

identification from non-customers 

seeking to cash Treasury checks. 

However, in the extraordinary 

circumstances resulting from Hurricane 

Katrina, many individuals displaced 

from their homes and communities do 

not have standard forms of 

identification. Depository institutions 

and retailers have experienced difficulty 

in confirming the identity of Hurricane 

Katrina evacuees who are seeking to 

cash Treasury assistance and benefit 

checks. 

Treasury recognizes that it is critical 

that Hurricane Katrina evacuees be able 

to cash their Treasury assistance and 

benefit checks expeditiously and wishes 

to encourage depository institutions to 

assist evacuees in obtaining funds for 

their basic needs. Accordingly, Treasury 

has established an interim policy to 

relieve depository institutions from 

liability for cashing or subsequently 

accepting for deposit a Treasury 

assistance or benefit check containing a 

forged or unauthorized indorsement if 

(1) the identify of the individual cashing 

the check was verified by calling a 

telephone number provided by the 

issuing agency for this purpose or (2) 

other prudent to identify the individual 

were made. Depository institutions and 

other entities should consider 

documenting their efforts to verify the 

identify of individuals. 

Interim Policy for U.S. Treasury Checks 

for FEMA Disaster Assistance Payments 

and Federal Benefit Payments to 

Recipients Who Resided in Areas 

Affected by Hurricane Katrina 

Under Treasury’s interim policy, a 

depository institution will be relieved 

from liability in a check reclamation 

action based on a forged or 

unauthorized indorsement of a Treasury 

assistance or benefit check if the 

identity of the individual is verified at 

the time the check is cashed either by 

calling a telephone number provided by 

the issuing agency for this purpose or by 

other prudent efforts. Prudent efforts 

depend upon the circumstances of each 

situation, but might include one or more 

of the following: seeking identification 

documents such as a driver’s license, 

military identification or passport; 

inspecting other documents such as 

utility bills, leases, or revolving charge 

bills; or comparing information 

provided by the individual to 

information obtained through electronic 

searches of consumer reporting 

agencies, public databases or other 

sources. 

This interim policy is effective for any 

Treasury assistance or benefit check 

cashed on or after September 3, 2005 

and through November 14, 2005. 

Dated: September 19, 2005. 

Richard L. Gregg, 

Commissioner. 

[FR Doc. 05–18968 Filed 9–19–05; 1:28 pm] 

BILLING CODE 4810–35–M