While reading the following, please keep in mind that there are no dumb questions......

A non-customer came in with a $15,000 US Treasury Check wanting to cash it. We turned him away, but the questions was raised, "If we are a federally insured bank, are we not required to cash checks that are federally funded?"

I don't think that is the case, but there is enough doubt in my thought processes to make me want to post the question here for your consideration.

For those of you whom I've made laugh out loud at the ridiculousness of the question, you're welcome. I've made your day brighter. If you have the strength left to respond, please do so.

Thanks,
Jeremy

No. You are not required to cash a government check for a non-customer. That's one of those urban legends that lurk about.

I get this question all the time from my staff, Jeremy, so it is not a dumb question. Thinking about it strictly from that standpoint I can see their point. However, from a liability standpoint, for that amount of money why would you want to cash it? That's an awful lot of money to be on the hook for in the event it was fraudulently cashed.

Be sure to check your state law... I do believe that one or two do states may require you to do so.

Our CO will return from a pneumonia vacation tomorrow, so I'll see if she has seen any verbiage in state code that addresses the issue.

Thanks for all of your input.

Plus the liability is ungodly - what is Treasury's right of return, 5 or 7 years? Or am I thinking of savings bonds -


it's late, it's late - I really need a date.......

Treasury returns are limited to about 18 months. Another urban legend gone!

Most states that mandate government check cashing limit it to SSA, retirement and similar payments for "pensioners." A $15,000 check is probably outside those requirements.

The prolem is if there is a reclaimation, you are out the $15,000 to the non-customer and another $15,000 to the government. Good luck in the recovery.