What is the United States Treasury Check Forgery Insurance Fund?
The Check Forgery Insurance Fund was established by the Federal Government in 1941 to serve as a restitution source to payees when checks drawn upon federal treasury depositories had been lost, forged or stolen.1 The Fund’s enabling statute, 31 U.S.C.S. 3343 (a), (b), (d) has sustained minor changes since that time, but remains the law. The Check Forgery Insurance Fund is financed by section 31 U.S.C.S. 3343, subdivisions (a) and (d) which state in part: • “(a)The Department of the Treasury has a special deposit revolving fund… Amounts may be appropriated to the Fund. The Fund consists of amounts (1) appropriated to the Fund; and (2) received under subsection (d) of this section. • (d) The Secretary shall deposit immediately to the credit of the Fund and amount recovered from a forger or a transferee or party on the check…” Initially, $50,000 was earmarked for the Check Forgery Insurance Fund 2. Presently, its funding level is set at the discretion of the Secretary of the Treasury.
