[Code of Federal Regulations]

[Title 31, Volume 2]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR210.10]



[Page 56-57]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY

 

PART 210_FEDERAL GOVERNMENT PARTICIPATION IN THE AUTOMATED CLEARING HOUSE--Table of Contents

 

                Subpart B_Reclamation of Benefit Payments

 

Sec.  210.10  RDFI liability.



    (a) Full liability. An RDFI shall be liable to the Federal 

Government for the total amount of all benefit payments received after 

the death or legal incapacity of a recipient or the death of a 

beneficiary unless the RDFI has the right to limit its liability under 

Sec.  210.11 of this part. An RDFI shall return any benefit payments 

received after the RDFI becomes aware of the death or legal incapacity 

of a recipient or the death of a beneficiary, regardless of the manner 

in which the RDFI discovers such information. If the RDFI learns of the 

death or legal incapacity of a recipient or death of a beneficiary from 

a source other than notice from the agency issuing payments to the 

recipient, the RDFI shall immediately notify the agency of the death or 

incapacity. The proper use of the R15 or R14 return reason code shall be 

deemed to constitute such notice.

    (b) Notice of reclamation. Upon receipt of a notice of reclamation, 

an RDFI shall provide the information required by the notice of 

reclamation and return the amount specified in the notice of reclamation 

in a timely manner.

    (c) Exception to liability rule. An RDFI shall not be liable for 

post-death benefit payments sent to a recipient acting as a 

representative payee or fiduciary on behalf of a beneficiary, if the 

beneficiary was deceased at the time the authorization was executed and 

the



[[Page 57]]



RDFI did not have actual or constructive knowledge of the death of the 

beneficiary.

    (d) Time limits. An agency that initiates a request for a 

reclamation must do so within 120 calendar days after the date that the 

agency first has actual or constructive knowledge of the death or legal 

incapacity of a recipient or the death of a beneficiary. An agency may 

not reclaim any post-death or post-incapacity payment made more than six 

years prior to the date of the notice of reclamation; provided, however, 

that if the account balance at the time the RDFI receives the notice of 

reclamation exceeds the total amount of post-death or post-incapacity 

payments made by the agency during such six-year period, this limitation 

shall not apply and the RDFI shall be liable for the total amount of all 

post-death or post-incapacity payments made, up to the amount in the 

account at the time the RDFI receives the notice of reclamation and has 

had a reasonable opportunity to act on the notice (not to exceed one 

business day).

    (e) Debit of RDFI's account. If an RDFI does not return the full 

amount of the outstanding total or any other amount for which the RDFI 

is liable under this subpart in a timely manner, the Federal Government 

will collect the amount outstanding by instructing the appropriate 

Federal Reserve Bank to debit the account utilized by the RDFI. The 

Federal Reserve Bank will provide advice of the debit to the RDFI.



[64 FR 17487, Apr. 9, 1999, as amended at 69 FR 13189, Mar. 19, 2004]