Section 9: Glossary

Abandonment

A process used by the Bureau of the Fiscal Service (Fiscal Service) to terminate the check reclamation because the financial institution's liability for the reclamation was deemed inappropriate.

Administrative Offset

As defined in Title 31 CFR part 240, an administrative offset, also referred to in this document as offset, is the withholding of funds payable by the United States (including funds payable by the United States on behalf of a State government) to, or held by the United States for, a person to satisfy a claim or debt.

Check reclamation

A check reclamation is a demand to a financial institution for a refund of the amount of an improperly negotiated or unauthorized U.S. Department of the Treasury (Treasury) check payment.

Direct Debit

A direct debit is a process that debits the financial institution's Federal Reserve master account for the full amount of the reclamation on the 31st calendar day provided the financial institution has not submitted a protest and has not paid the reclamation by an authorization before the 30th calendar day from the reclamation date.

Federal Entity

A federal entity is any department, agency, independent establishment, board, office, commission, or other establishment in the executive, legislative, or judicial branch of the federal government; any wholly owned or controlled government corporation; and the municipal government of the District of Columbia. "Agency", "Federal Agency", "department", "federal entity", and "reporting entity" are used interchangeably unless otherwise noted.

Federal Reserve Bank

The Board of Governors of the Federal Reserve System of 12 Districts, each served by a Federal Reserve Bank, serves as the nation's central bank. Federal Reserve Banks serve as the federal government's fiscal agents. The national system of Federal Reserve Banks processes electronic payments (e.g., Fedwire transfers and ACH) and checks, handles federal government deposits and various support functions, and supervises and regulates federally chartered financial institutions.

FedMail

The Fedmail is an application that receives large files for distribution via e-mail, Connect:Direct (C:D), or fax to financial institutions depending on how the financial institution prefers to receive the information.

Financial Institution

A financial institution (FI) includes but is not limited to any commercial bank, savings bank, credit union, savings and loan association, state bank, or national bank created under federal or state law authorized to accept Treasury General Account (TGA) deposits, as well as deposits from other federal collection programs.

Master Account

A Master Account is the record of financial rights and obligations of an account holder and the Federal Reserve Bank with respect to each other, where opening, intraday, and closing balances are determined.

Notice of Direct Debit (U.S. Treasury Check Reclamation)

A Notice of Direct Debit (U.S. Treasury Check Reclamation) is an initial notice sent to the presenting bank advising it of the amount due and the reason for the reclamation.

Presenting Bank

As defined in Title 31 CFR part 240, a presenting bank which, either directly or through a corresponding banking relationship, is the financial institution that presents checks to a Federal Reserve Bank and receives provisional credit from the Federal Reserve for the check payment;
Or
A depositary which is authorized to charge checks directly to Treasury's General Account and present them to the Department of the Treasury for payment through a designated Federal Reserve Bank.

Protest

A protest is a written statement to the Bureau of the Fiscal Service requesting a review of its decision that the financial institution is liable for a check reclamation. It raises a valid legal or factual question and includes any supporting documentation which proves the financial institution is not liable.

Reclamation

As defined in Title 31 CFR part 240, a reclamation is a demand for the amount of a check for which Treasury has requested an immediate refund.

Reclamation Date

As defined in Title 31 CFR part 240, the reclamation date is the date on which a reclamation is issued by Treasury. Normally, demands are sent to presenting banks or other endorsers within two business days of the reclamation date.

Summary of Debt Statement

A Summary of Debt Statement is a follow-up statement sent to the presenting bank consisting of a detailed listing of outstanding reclamation debts and associated information, the applicable Fiscal Service collection regulations, and an explanation of the columns on the Summary of Debt Statement.