---
kind: "section"
citation: "31 C.F.R. § 240.5"
title: "31"
number: "240.5"
heading: "Limitations on payment; cancellation and distribution of proceeds of checks."
url: "https://uscodex.org/cfr/31/240.5"
---

# §240.5. Limitations on payment; cancellation and distribution of proceeds of checks.

- (a) **Limitations on payment.**
  - (1) Treasury shall not be required to pay any check that is not negotiated to a financial institution within 12 months after the date on which the check was issued.
  - (2) All checks shall bear a legend, stating “Void After One Year.” The legend is notice to payees and indorsers of a general limitation on the payment of checks. The legend, or the inadvertent lack thereof, does not limit, or otherwise affect, the rights of Treasury under the law.
- (b) **Cancellation and distribution of proceeds of checks.**
  - (1) Any check that has not been paid and remains outstanding for more than 12 months after the issue date will be canceled by Treasury.
  - (2) The proceeds from checks canceled pursuant to [paragraph (b)(1)](#b-1) of this section will be returned to the payment certifying or authorizing agency for ultimate credit to the appropriation or fund account initially charged for the payment.
  - (3) On a monthly basis, Treasury will provide to each agency that authorizes the issuance of checks a list of those checks issued for such agency which were canceled during the preceding month pursuant to [paragraph (b)(1)](#b-1) of this section.

## Notes

### Authority

Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 321, 3327, 3328, 3331, 3334, 3343, 3711, 3712, 3716, 3717; 332 U.S. 234 (1947); 318 U.S. 363 (1943).

### Source

Source: 69 FR 61568, Oct. 19, 2004, unless otherwise noted.