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FEDERAL RESERVE BANK OF NEW YORK Air-&0i■ February 2, 1990 Changes in U.S. Treasury Check Time Limits To All Depository Institutions in the Second Federal Reserve District, and Others Concerned: In our Circular No. 10332, dated January 10,1990, we advised you of a change in our Operating Circular No. 4 that limits (in conformity with recent Treasury regulations) the time within which Government checks may be paid. Accordingly, beginning October 1, 1990, depository institutions should not accept U.S. Trea sury checks that are more than one year old and have become void. In order to implement this policy, depository institutions should: 1. Alert tellers to look for the issue date — in the upper left corner (to the right of the seal), under the words “United States Treasury” — and instruct them not to accept Treasury checks more than 12 months after issuance. 2. Identify void checks in automated sorting operations (where applicable) by changing soft ware to “edit” for the issue date and accept only Treasury checks whose issue date is less than 12 months old. Edit for the issue date in the MICR line in positions 15-18 (YYM M ). Once identified, the item can be returned to the depositor and appropriate accounting ad justments can be made. 3. Direct the check recipient to the Federal Agency that authorized the payment, for a reissued check. Depository institutions will continue to have the opportunity to protest a Treasury check rec lamation action; there will be no change from current procedures in this regard. The Treasury may begin a reclamation from the depository institution one year plus 180 days from the date the check was paid, for checks paid over a forged or unauthorized signature or checks containing a material alteration or other defect. We urge you to begin preparing for these changes, which will be effective October 1, 1990, as soon as possible. Questions regarding the new Treasury check time limits should be directed to George Ferraro, Assistant Chief at our Jericho Office (Tel. No. 516-997-4500). J ohn F. Sobala , Vice President.
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