Answer:
There is nothing in federal regulations or the UCC that would limit one's ability to negotiate a federal government check, including an advance credit (let's please not call these refunds -- they're advance payments of credits available to some taxpayers beginning with tax year 2003) to anyone else for any legal purpose.
I see no reason that such a check, assuming it is endorsed by all payees, could not be restrictively endorsed for application to a line of credit.
First published on BankersOnline.com 10/20/03