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 PUBLIC LAW 97-258—SEPT. 13, 1982 (2) in the usual course of business accepts, subject to withdrawal, money for deposit or the purchase of shares; (3) is under the supervision of a banking authority of the jurisdiction in which it is incorporated; (4) has a regular office to do business; and (5) is qualified under regulations prescribed by the Secretary in carrying out this subsection. (e)(1) The Secretary may prescribe a way in which a check issued to an individual (except a trust or estate) as a refund for taxes imposed under subtitle A of the Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.) may become a series E savings bond. However, a check may become a bond only if the claim for a refund is filed by the last day prescribed by law for filing the return (determined without any extensions) for the taxable year for which the refund is made. The Secretary may prescribe the time and way in which the check becomes a bond. (2) A bond issued under this subsection is deemed to be a series E bond issued under this section, except that the bond shall bear an issue date of the first day of the first month beginning after the close of the taxable year for which the bond is issued. The Secretary also may provide that a bond issued to joint payees may be redeemed by either payee alone. § 3106. Retirement and savings bonds (a) With the approval of the President, the Secretary of the Treasury may issue retirement and savings bonds of the United States Government and may buy, redeem, and make refunds under section 3111 of this title. The proceeds from the bonds shall be used for expenditures authorized by law. Retirement and savings bonds may be issued only on a discount basis. The maturity period of the bonds shall be at least 10 years from the date of issue but not more than 30 years from the date of issue. The difference between the price paid and the amount received on redeeming a bond is interest under the Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.). (b) The issue price of retirement and savings bonds and the conditions under which they may be redeemed may give an investment yield of not more than 5 percent a year compounded semiannually. With the approval of the President, the Secretary may allow owners of retirement and savings bonds to keep the bonds after maturity and continue to earn interest on them at rates that are consistent with the rate of investment yield provided by retirement and savings bonds. (c) Section 3105(c)(l)-(5) of this title applies to this section. Sections 3105(c)(6) and (d) and 3126 of this title apply to this section to the extent consistent with this section. The Secretary may prescribe the maximum amount of retirement and savings bonds issued under this section in a year that may be held by one person. However, the maximum amount shall be at least $3,000. § 3107. Increasing interest rates and investment yields on retirement bonds With the approval of the President, the Secretary of the Treasury may increase by regulation the interest rate or investment yield on an offering of bonds issued under this chapter that are described in sections 405(b) and 409(a) of the Internal Revenue Code of 1954 (26 U.S.C. 405(b), 409(a)). The increased yield shall be for interest accrual periods specified in the regulations so that the interest rate

96 STAT. 941

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PUBLIC LAW 97-258—SEPT. 13, 1982 or investment yield on the bonds for those periods is consistent with the interest rate or investment yield on a new offering of those bonds. § 3108. Prohibition against circulation privilege An obligation issued under sections 3102-3104(a)(l) and 3105-3107 of this title may not bear the circulation privilege. § 3109. Tax and loss bonds (a) The Secretary of the Treasury may issue tax and loss bonds of the United States Government and may buy, redeem, and make refunds under section 3111 of this title. The proceeds of the tax and loss bonds shall be used for expenditures authorized by law. Tax and loss bonds are nontransferrable except as provided by the Secretary, bear no interest, and shall be issued in amounts needed to allow persons to comply with section 832(e) of the Internal Revenue Code of 1954 (26 U.S.C. 832(e)). The Secretary may prescribe the amount of tax and loss bonds and the conditions under which the bonds will be issued as required by section 832(e). (b) For a taxable year in which amounts are deducted from the mortgage guaranty account referred to in section 832(e)(3) of the Internal Revenue Code of 1954 (26 U.S.C. 832(e)(3)), an amount of tax and loss bonds bought under section 832(e)(2) of the Internal Revenue Code of 1954 (26 U.S.C. 832(e)(2)) shall be redeemed for the amount deducted from the account. The amount redeemed shall be applied as necessary to pay taxes due because of the inclusion under section 832(b)(1)(E) of the Internal Revenue Code of 1954 (26 U.S.C. 832(b)(1)(E)) of amounts in gross income. The Secretary also may prescribe additional ways to redeem the bonds.

§3110. Sale of obligations of governments of foreign countries (a) With the approval of the President, the Secretary of the Treasury may sell obligations of the government of a foreign country when the obligations were acquired under— 31 USC 774. (1) the First Liberty Bond Act and matured before June 16, 1947; 31 USC 774. (2) the Second Liberty Bond Act and matured before October 16, 1938; or 31 USC 802 note. (3) section 7(a) of the Victory Liberty Loan Act. (b) The Secretary may prescribe the conditions and frequency for receiving payment under obligations of a government of a foreign country acquired under the laws referred to in subsection (a) of this section. A sale of an obligation acquired under those Acts shall at least equal the purchase price and accrued interest. The proceeds of obligations sold under this section and payments received from governments on the principal of their obligations shall be used to redeem or buy (for not more than par value and accrued interest) bonds of the United States Government issued under this chapter. If those bonds cannot be redeemed or bought, the Secretary shall redeem or buy other outstanding interest-bearing obligations of the Government that are subject to redemption or which can be bought at not more than par value and accrued interest. §3111. New issue used to buy, redeem, or refund outstanding obligations An obligation may be issued under this chapter to buy, redeem, or refund, at or before maturity, outstanding bonds, notes, certificates

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of indebtedness, Treasury bills, or savings certificates of the United States Government. Under regulations of the Secretary of the Treasury, money received from the sale of an obligation and other money in the general fund of the Treasury may be used in making the purchases, redemptions, or refunds. § 3112. Sinking fund for retiring and cancelling bonds and notes (a) The Department of the Treasury has a sinking fund for retiring bonds and notes issued under this chapter. Amounts in the fund are appropriated for payment of bonds and notes at maturity or for their redemption or purchase before maturity by the Secretary of the Treasury. The fund is available until all the bonds and notes are retired. (b) For each fiscal year, an amount is appropriated equal to— (1) the interest that would have been payable during the fiscal year for which the appropriation is made on the bonds and notes bought, redeemed, or paid out of the fund during that or prior years; (2) 2.5 percent of the total amount of bonds and notes issued under the First Liberty Bond Act, the Second Liberty Bond Act, the Third Liberty Bond Act, the Fourth Liberty Bond Act, and the Victory Liberty Loan Act and outstanding on July 1, 1920, 31 USC 774. less an amount equal to the par amount of obligations of governments of foreign countries that the United States Government held on July 1, 1920; and (3) 2.5 percent of the total amount expended after June 29, 1933, from appropriations made or authorized in sections 301 and 302 of the Emergency Relief and Construction Act of 1932,

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(c) The Secretary may prescribe the price and conditions for paying, redeeming, and buying bonds and notes under this section. The average cost of bonds and notes bought under this section may not be more than par value and accrued interest. Bonds and notes bought, redeemed, or paid out of the sinking fund must be canceled and retired and may not be reissued. § 3113. Accepting gifts (a) To provide the people of the United States with an opportunity to make gifts to the United States Government to be used to reduce the public debt— (1) the Secretary of the Treasury may accept for the Government a gift of— (A) money made only on the condition that it be used to reduce the public debt; (B) an obligation of the Government included in the public debt made only on the condition that the obligation be canceled and retired and not reissued; and (C) other intangible personal property made only on the condition that the property is sold and the proceeds from the sale used to reduce the public debt; and (2) the Administrator of General Services may accept for the Government a gift of tangible property made only on the condition that it be sold and the proceeds from the sale be used to reduce the public debt. (b) The Secretary and the Administrator each may reject a gift under this section when the rejection is in the interest of the Government.

47 Stat. 716, 720.

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PUBLIC LAW 97-258—SEPT. 13, 1982 (c) The Secretary and the Administrator shall convert a gift either of them accepts under subsection (a)(l)(C) or (2) of this section to money on the best terms available. If a gift accepted under subsection (a) of this section is subject to a gift or inheritance tax, the Secretary or the Administrator may pay the tax out of the proceeds of the gift or the proceeds of the redemption or sale of the gift. (d) The Treasury has an account into which money received as gifts and proceeds from the sale or redemption of gifts under this section shall be deposited. The Secretary shall use the money in the account to pay at maturity, or to redeem or buy before maturity, an obligation of the Government included in the public debt. An obligation of the Government that is paid, redeemed, or bought with money from the account shall be canceled and retired and may not be reissued. Money deposited in the account is appropriated and may be expended to carry out this section. (e)(1) The Secretary shall redeem a direct obligation of the Government bearing interest or sold on a discount basis on receiving it when the obligation— (A) is given to the Government; (B) becomes the property of the Government under the conditions of a trust; or (C) is payable on the death of the owner to the Government (or to an officer of the Government in the officer's official capacity). (2) If the gift or transfer to the Government is subject to a gift or inheritance tax, the Secretary shall pay the tax out of the proceeds of redemption. SUBCHAPTER II—ADMINISTRATIVE §3121. Procedure (a) In issuing obligations under sections 3102-3104 of this title, the Secretary of the Treasury may prescribe— (1) whether an obligation is to be issued on an interest-bearing basis, a discount basis, or an interest-bearing and discount basis; (2) regulations on the conditions under which the obligation will be offered for sale, including whether it will be offered for sale on a competitive or other basis; (3) the offering price and interest rate; (4) the method of computing the interest rate; (5) the dates for paying principal and interest; (6) the form and denominations of the obligations; and (7) other conditions. (b)(1) Under conditions prescribed by the Secretary, an obligation issued under this chapter and redeemable on demand of the owner or holder may be used to pay the United States Government for taxes imposed by it. (2) An obligation of the Government issued after March 3, 1971, under law may not be redeemed before its maturity to pay a tax imposed by the Government in an amount more than the fair market value of the obligation at the time of its redemption. This paragraph does not apply to a Treasury bill issued under section 3104 of this title. (c) Under conditions prescribed by the Secretary, an obligation authorized by this chapter may be issued in exchange for an obliga-

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 PUBLIC LAW 97-258—SEPT. 13, 1982 tion of an agency whose principal and interest are unconditionally guaranteed by the Government at or before maturity. (d) Under conditions prescribed by the Secretary, the Secretary may issue registered bonds in exchange for and instead of coupon bonds that have been or may be issued. The registered bonds shall be similar in all respects to the registered bonds issued under a law authorizing the issue of coupon bonds offered for exchange. (e) A decision of the Secretary about an issue of obligations under sections 3102-3104 of this title is final. (f) The Secretary may accept voluntary services in carrying out the sale of public debt obligations. § 3122. Banks and trust companies as depositaries (a) The Secretary of the Treasury may designate incorporated banks and trust companies as depositaries for any part of proceeds of an obligation issued under this chapter. The Secretary may prescribe the conditions under which deposits may be made under this section, including the interest rate on amounts deposited and security requirements. (b) The Secretary may designate a bank or trust company that is a depositary under subsection (a) of this section as a fiscal agent of the United States Government in selling and delivering bonds and certificates of indebtedness issued by the Government. § 3123. Payment of obligations and interest on the public debt (a) The faith of the United States Government is pledged to pay, in legal tender, principal and interest on the obligations of the Government issued under this chapter. (b) The Secretary of the Treasury shall pay interest due or accrued on the public debt. As the Secretary considers expedient, the Secretary may pay in advance interest on the public debt by a period of not more than one year, with or without a rebate of interest on the coupons. (c)(1) The Secretary may issue a bond, note, or certificate of indebtedness authorized under this chapter whose principal and interest are payable in a foreign currency stated in the bond, note, or certificate. The Secretary may dispose of the bonds, notes, and certificates at a price that is at least par value without complying with section 3102(b)-(d) of this title. (2) In determining the dollar amount of bonds, notes, and certificates of indebtedness that may be issued under this chapter, the dollar equivalent of the amount of bonds, notes, and certificates payable in a foreign currency is determined by the par of the exchange value on the date of issue of the bonds, notes, or certificates as published by the Secretary under section 5151 of this title. (3) The Secretary may designate depositaries in foreign countries in which any part of the proceeds of bonds, notes, or certificates of indebtedness payable in the foreign currency may be deposited. § 3124. Exemption from taxation (a) Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax, except— (1) a nondiscriminatory franchise tax or another nonproperty tax instead of a franchise tax, imposed on a corporation; and

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Limitation.

"Obligation."

PUBLIC LAW 97-258—SEPT. 13, 1982 (2) an estate or inheritance tax. (b) The tax status of interest on obligations and dividends, earnings, or other income from evidences of ownership issued by the Government or an agency and the tax treatment of gain and loss from the disposition of those obligations and evidences of ownership is decided under the Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.). An obligation that the Federal Housing Administration had agreed, under a contract made before March 1, 1941, to issue at a future date, has the tax exemption privileges provided by the authorizing law at the time of the contract. This subsection does not apply to obligations and evidences of ownership issued by the District of Columbia, a territory or possession of the United States, or a department, agency, instrumentality, or political subdivision of the District, territory, or possession. § 3125. Relief for lost, stolen, destroyed, mutilated, or defaced obligations (a) In this section, "obligation" means a direct obligation of the United States Government issued under law for valuable consideration, including bonds, notes, certificates of indebtedness. Treasury bills, and interim certificates issued for an obligation. (b) The Secretary of the Treasury may provide relief for the loss, theft, destruction, mutilation, or defacement of an obligation identified by number and description. (c)(1) An indemnity bond is required as a condition of relief if the obligation is payable to bearer or assigned so as to become payable to bearer and is not proven clearly to have been destroyed. The Secretary may prescribe for the indemnity bond the form, amount, and surety or security requirements. (2) Relief for interest coupons claimed to have been attached to an obligation may be provided only if the Secretary is satisfied that the coupons have not been paid and are destroyed or will not become the basis of a valid claim against the Government. § 3126. Losses and relief from liability related to redeeming savings bonds and notes (a) Under regulations prescribed by the Secretary of the Treasury, a loss resulting from a payment related to redeeming a savings bond or savings note shall be replaced out of the fund established by section 2 of the Government Losses in Shipment Act (40 U.S.C. 722). A Federal reserve bank, a paying agent allowed to make payments in redeeming a bond or note, or an officer or employee of the Department of the Treasury is relieved from liability to the United States Government for the loss when the Secretary decides that the loss did not result from the fault or negligence of the bank, paying agent, officer, or employee. The Secretary shall relieve the bank, agent, officer, or employee from liability when the Secretary decides that written notice of liability or potential liability has not been given to the bank, agent, officer, or employee by the Government within 10 years from the date of the erroneous payment. However, the Secretary may not relieve a paying agent of an assumed unconditional liability to the Government. (b) Section 8 of the Government Losses in Shipment Act (40 U.S.C. 723) (related to finality of decisions of the Secretary) applies to a decision of the Secretary made under this section. A recovery or repayment of a loss for which replacement is made out of the fund

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shall be credited to the fund and is available for the purposes for which the fund was established. § 3127. Credit to officers, employees, and agents for stolen Treasury notes When an officer, employee, or agent of the United States Government authorized to receive, redeem, or cancel Treasury notes receives or pays a note that was stolen and put in circulation after it had been received or redeemed by an officer, employee, or agent authorized to receive or redeem the note, the Secretary of the Treasury may allow the officer, employee, or agent receiving or paying the stolen note a credit for the amount of the note. The Secretary may allow the credit only if the Secretary is satisfied that the note was received or paid in good faith and in exercising ordinary prudence. § 3128. Proof of death to support payment A finding of death made by an officer or employee of the United States Government authorized by law to make the finding is sufficient proof of death to allow credit in the accounts of a Federal reserve bank or accountable official of the Department of the Treasury in a case involving the transfer, exchange, reissue, redemption, or payment of obligations of the Government, including obligations guaranteed by the Government for which the Secretary of the Treasury acts as transfer agent. § 3129. Appropriation to pay expenses (a) Amounts to pay necessary expenses (including rent) for an issue of obligations authorized under this chapter are appropriated to the Secretary of the Treasury. However, the amount appropriated under this section may not be more than— (1).2 percent of the amount of bonds and notes authorized under this chapter; (2).1 percent of the amount of certificates of indebtedness authorized under section 3104 of this title; and (3).1 percent of the amount of certificates of indebtedness authorized under the First Liberty Bond Act. 31 USC 774. (b) An appropriation under this section is available for obligation only through the end of the fiscal year after the fiscal year in which the issue was made. During a period for which an appropriation for a specified amount is made for expenses for which this section makes an appropriation for an unspecified amount, only the appropriation for the specified amount is available for obligation. CHAPTER 33—DEPOSITING, KEEPING, AND PAYING MONEY SUBCHAPTER I—DEPOSITS AND DEPOSITARIES Sec. 3301. 3302. 3303. 3304. 3305. 3321. 3322. 3323. 3324.

General duties of the Secretary of the Treasury. Custodians of money. Designation of depositaries. Transfers of public money from depositaries. Audits of depositaries. SUBCHAPTER II-PAYMENTS Disbursing authority in the executive branch. Disbursing officials. Warrants. Advances.

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96 STAT. 948 Sec. 3325. 3326. 3327. 3328. 3329. 3330.

Vouchers. Waiver of requirements for warrants and advances. General authority to issue checks and other drafts. Paying checks and drafts. Withholding checks to be sent to foreign countries. Payment of Veterans' Administration checks for the benefit of individuals in foreign countries. 3331. Substitute checks. 3332. Checks payable to financial organizations designated by Government officers and employees. 3333. Relief for payments made without negligence. SUBCHAPTER III—MISCELLANEOUS 3341. Sale of Government warrants, checks, drafts, and obligations. 3342. Check cashing and exchange transactions. 3343. Check forgery insurance fund.

SUBCHAPTER I—DEPOSITS AND DEPOSITARIES § 3301. General duties of the Secretary of the Treasury (a) The Secretary of the Treasury shall— (1) receive and keep public money; (2) take receipts for money paid out by the Secretary; (3) give receipts for money deposited in the Treasury; (4) endorse warrants for receipts for money deposited in the Treasury; (5) submit the accounts of the Secretary to the Comptroller General every 3 months, or more often if required by the Comptroller General; and (6) submit to inspection at any time by the Comptroller General of money in the possession of the Secretary. (b) Except as provided in section 3326 of this title, an acknowledgment for money deposited in the Treasury is not valid if the Secretary does not endorse a warrant as required by subsection (a)(4) of this section.

Penalty.

§ 3302. Custodians of money (a) Except as provided by another law, an official or agent of the United States Government having custody or possession of public money shall keep the money safe without— (1) lending the money; (2) using the money; (3) depositing the money in a bank; and (4) exchanging the money for other amounts. (b) An official or agent of the Government receiving money for the Government from any source shall deposit the money in the Treasury as soon as practicable without deduction for any charge or claim. (c) A person having custody or possession of public money, including a disbursing official having public money not for current expenditure, shall deposit the money without delay, but not later than the 30th day after the custodian receives the money, in the Treasury or with a depositary designated by the Secretary of the Treasury under law. The Secretary or a depositary receiving a deposit shall issue duplicate receipts for the money deposited. The original receipt is for the Secretary and the duplicate is for the custodian. (d) An official or agent not complying with subsection (b) of this section may be removed from office. The official or agent may be

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 PUBLIC LAW 97-258—SEPT. 13, 1982 required to forfeit to the Government any part of the money held by the official or agent and to which the official or agent may be entitled. (e) An official or agent of the Government having custody or possession of public money shall keep an accurate entry of each amount of public money received, transferred, and paid. (1) When authorized by the Secretary, an official or agent of the Government having custody or possession of public money, or performing other fiscal agent services, may be allowed necessary expenses to collect, keep, transfer, and pay out public money and to perform those services. However, money appropriated for those expenses may not be used to employ or pay officers and employees of the Government. § 3303. Designation of depositaries (a) The Secretary of the Treasury designates depositaries of money as provided in this section and under other law. (b) When necessary to carry out the business of the United States Government and under conditions the Secretary decides are necessary, the Secretary may designate depositaries in foreign countries and in territories and possessions of the United States to receive deposits of public money. The Secretary shall give preference to United States financial institutions the Secretary decides are safe and able to give the service required. § 3304. Transfers of public money from depositaries The Secretary of the Treasury may transfer public money in the possession of a depositary— (1) to the Treasury; and (2) if the Secretary believes the safety of the public money and convenience require it, to another depositary. § 3305. Audits of depositaries The Secretary of the Treasury, or an officer, employee, or agent designated by the Secretary, may audit a depositary of public money. For uniformity and accuracy in accounts and safety of public money, an individual conducting an audit shall audit a depositary's— (1) books; (2) accounts; (3) returns; and (4) public money on hand and the way the money is kept. SUBCHAPTER II—PAYMENTS § 3321. Disbursing authority in the executive branch (a) Except as provided in this section or another law, only officers and employees of the Department of the Treasury designated by the Secretary of the Treasury as disbursing officials may disburse public money available for expenditure by an executive agency. (b) For economy and efficiency, the Secretary may delegate the authority to disburse public money to officers and employees of other executive agencies. (c) The head of each of the following executive agencies shall designate personnel of the agency as disbursing officials to disburse public money available for expenditure by the agency:

96 STAT. 949

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PUBLIC LAW 97-258—SEPT. 13, 1982 (1) United States Marshal's Office. (2) military departments of the Department of Defense (except for disbursements for departmental pay and expenses in the District of Columbia). (d) On request of the Secretary and with the approval of the head of an executive agency referred to in subsection (c) of this section, facilities of the agency may be used to assist in disbursing public money available for expenditure by another executive agency. § 3322. Disbursing officials (a) The Secretary of the Treasury shall transfer public money to a disbursing official only by draft or warrant written on the Treasury. A disbursing official shall— (1) deposit public money as required by section 3302 of this title; and (2) draw public money from the Treasury or a depositary only— (A) as necessary to make payments; and (B) payable to persons to whom payment is to be made. 0)) A disbursing official is not liable for an overpayment provided under a United States Government bill of lading or transportation request when the overpayment is caused by the— (1) use of improper transportation rates or classifications; or (2) failure to deduct the proper amount under— (A) a land grant law; or (B) an equalization or other agreement. § 3323. Warrants (a) Except as provided in section 3326 of this title, the Secretary of the Treasury may pay out money only against a warrant. A warrant shall be— (1) authorized by law; (2) signed by the Secretary; and (3) countersigned by the Comptroller General. (b)(1) A disbursing official shall send to the Secretary with a warrant a certificate under section 3526 of this title, or a requisition for an advance. The certificate or requisition shall state the appropriation to which the payment is to be charged. (2) The Secretary shall return the certificate or requisition to the Comptroller General with the date and amount endorsed on the certificate or requisition. (c) A requisition for the payment of money on an audited account or for depositing money in the Treasury is not required. (d) The Secretary and the Comptroller General shall charge to the appropriate appropriation in their books any money paid by a warrant. §3324. Advances (a) Except as provided in this section, a payment under a contract to provide a service or deliver an article for the United States Government may not be more than the value of the service already provided or the article already delivered. (b) An advance of public money may be made only if it is authorized by— (1) a specific appropriation or other law; or (2) the President to be made to—

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 PUBLIC LAW 97-258—SEPT. 13, 1982 (A) a disbursing official if the President decides the advance is necessary to carry out— (i) the duties of the official promptly and faithfully; and (ii) an obligation of the Government; or (B) an individual serving in the armed forces at a distant station if the President decides the advance is necessary to disburse regularly pay and allowances. (c) Before the Secretary of the Treasury acts on a requisition for an advance, the Comptroller General shall act on the requisition under section 3522 of this title. The Comptroller General does not countersign a requisition for an advance. (d) The head of an agency may pay in advance from appropriations available for the purpose— (1) to the Secretary of the Army, charges for messages sent by the Secretary of the Army for the head of the agency, including charges for— (A) payment of tolls of commercial carriers; (B) leasing facilities for sending messages; and (C) installing and maintaining facilities for sending messages; and (2) charges for a publication printed or recorded in any way for the auditory or visual use of the agency. §3325. Vouchers (a) A disbursing official in the executive branch of the United States Government shall— (1) disburse money only as provided by a voucher certified by(A) the head of the executive agency concerned; or (B) an officer or employee of the executive agency having written authorization from the head of the agency to certify vouchers; (2) examine a voucher if necessary to decide if it is— (A) in proper form; (B) certified and approved; and (C) computed correctly on the facts certified; and (3) except for the correctness of computations on a voucher, be held accountable for carrying out clauses (1) and (2) of this subsection. (b) Subsection (a) of this section does not apply to disbursements of a military department of the Department of Defense, except for disbursements for departmental pay and expenses in the District of Columbia. (c) On request, the Secretary of the Treasury may provide to the appropriate officer or employee of the United States Government a list of persons receiving periodic payments from the Government. When certified and in proper form, the list may be used as a voucher on which the Secretary may disburse money. § 3326. Waiver of requirements for warrants and advances (a) When the Secretary of the Treasury and the Comptroller General decide that, with sufficient safeguards, existing procedures may be changed to simplify, improve, and economize the control and accounting of public money, they may prescribe joint regulations for waiving any part of the requirements in effect on September 12, 1950, that—

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PUBLIC LAW 97-258—SEPT. 13, 1982 (1) warrants be issued and countersigned for the receipt, retention, and disbursement of public money and trust funds; and (2) amounts be requisitioned and advanced to accountable officials. (b) Regulations of the Secretary and the Comptroller General may provide for the payment of vouchers by authorized disbursing officials by checks drawn on the general fund of the Treasury. However, the regulations shall provide for appropriate action (including suspension or withdrawal of authority to make payments) against a delinquent disbursing official for any reason related to the official's accounts. § 3327. General authority to issue checks and other drafts The Secretary of the Treasury may issue a check or other draft on public money in the Treasury to pay an obligation of the United States Government. When the Secretary decides it is convenient to a public creditor and in the public interest, the Secretary may designate a depositary to issue a check or other draft on public money held by the depositary to pay an obligation of the Government. As directed by the Secretary, each depositary shall report to the Secretary on public money paid and received by the depositary.

Regulations.

§ 3328. Paying checks and drafts (a)(1) Except as provided in sections 3329 and 3330 of this title, a check drawn on the Treasury may be paid at any time. However, if the Secretary of the Treasury is on notice of a question of law or fact about the check when the check is presented, the Secretary shall defer payment until the Comptroller General settles the question. (2) When the Secretary decides it is appropriate, the Secretary may transfer— (A) the amount of an unpaid check drawn on the Treasury from the account on which it was drawn to a consolidated account of the Treasury available for paying checks; and (B) an amount available, but not required, for paying checks drawn on the Treasury to the appropriate receipt account. (b)(1) If a check issued by a disbursing official and drawn on a designated depositary is not paid by the last day of the fiscal year after the fiscal year in which the check was issued, the amount of the check is— (A) withdrawn from the account with the depositary; and (B) deposited in the Treasury for credit to a consolidated account of the Treasury. (2) A claim for the proceeds of an unpaid check under this subsection may be paid from a consolidated account by a check drawn on the Treasury on settlement by the Comptroller General. (c) A limitation imposed on a claim against the United States Government under section 3702 of this title does not apply to an unpaid check drawn on the Treasury or a designated depositary. (d) With the approval of the Comptroller General, the Secretary may prescribe regulations the Secretary decides are necessary to carry out subsections (a)-(c) of this section. (e)(l) The Secretary shall prescribe regulations on— (A) enforcing the speedy presentation of Government drafts; (B) paying drafts, including the place of payment; and (C) paying drafts if presentment is not made as required.

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 PUBLIC LAW 97-258—SEPT. 13, 1982 (2) Regulations prescribed under paragraph (1) of this subsection shall prevent, as far as may be practicable, Government drafts from being used or placed in circulation as paper currency or a medium of exchange. § 3329. Withholding checks to be sent to foreign countries (a) The Secretary of the Treasury shall prohibit a check or warrant drawn on public money from being sent to a foreign country from the United States or from a territory or possession of the United States when the Secretary decides that postal, transportation, or banking facilities generally, or local conditions in the foreign country, do not reasonably ensure that the payee— (1) will receive the check or warrant; and (2) will be able to negotiate it for full value. (b)(1) If a check or warrant is prohibited from being sent to a foreign country under subsection (a) of this section, the drawer shall hold the check or warrant until the end of the calendar quarter after the date of the check or warrant. (2) The Secretary may release the check or warrant for delivery during the calendar quarter after the date of the check or warrant if the Secretary decides that conditions have changed to ensure reasonably that the payee— (A) will receive the check or warrant; and (B) will be able to negotiate it for full value. (3) Unless the Secretary otherwise directs, the drawer shall send at the end of the calendar quarter after the date of the check or warrant the— (A) withheld check or warrant to the drawee; and (B) report to the Secretary on— (i) the name and address of the payee; (ii) the date, number, and amount of the check or warrant; and (iii) the account on which the check or warrant was drawn. (4) The drawee shall transfer the amount of a withheld check or warrant from the account of the drawer to the special deposit account "Secretary of the Treasury, Proceeds of Withheld Foreign Checks". The check or warrant shall be marked "Paid into Withheld Foreign Check Account". After that time, the drawee shall send all withheld checks and warrants to the Comptroller General. The Comptroller General shall credit the accounts of the drawer and drawee. (c) The Secretary may pay an amount deposited in the special account under subsection (b)(4) of this section with a check drawn on the account when— (1) a person claiming payment satisfies the Secretary of the right to the amount of the check or warrant (or satisfies the Administrator of Veterans' Affairs if the claim represents a payment under laws carried out by the Administrator); and (2) the Secretary is reasonably ensured that the person— (A) will receive the check or warrant; and (B) will be able to negotiate it for full value. (d) This section and section 3330 of this title— (1) apply to a check or warrant whose delivery may be withheld under Executive Order 8389; (2) do not affect a requirement for a license for delivering and paying a check in payment of a claim under subsection (c) of

96 STAT. 953

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PUBLIC LAW 97-258—SEPT. 13, 1982 this section when a license is required by law to authorize delivery and payment; and (3) do not affect a check or warrant issued for the payment of pay or goods bought by the United States Government in a foreign country.

Exemption.

§ 3330. Payment of Veterans' Administration checks for the benefit of individuals in foreign countries (a)(1) A check is deemed to be issued for sending to a foreign country and subject to this section and section 3329 of this title if the check is— (A) drawn on public money; (B) for benefits under laws carried out by the Administrator of Veterans' Affairs; and (C) to be sent to a person in the United States or a territory or possession of the United States, and the person is legally responsible for the care of an individual in a foreign country, (2) The Administrator shall notify the Secretary of the Treasury of each check described under paragraph (1) of this subsection. (3) The Administrator may exempt a check from paragraph (1) of this subsection if the application of paragraph (1) would reduce, discontinue, or deny benefits for the care of a dependent of an individual in a foreign country. (b) When the amount of checks (representing payments to an individual under laws carried out by the Administrator) transferred under section 3329(b)(4) of this title equals $1,000, the amounts of additional checks (except checks under contracts of insurance) payable to the individual under those laws shall be deposited in the Treasury as miscellaneous receipts. An amount transferred under section 3329(b)(4) or deposited as miscellaneous receipts is deemed to be payment for all purposes to the individual entitled to payment. (c) If the payee of a check for pension, compensation, or emergency officers' retirement pay under laws carried out by the Administrator dies while the amount of the check is in the special deposit account, the amount is payable (subject to section 3329 of this title and this section) as follows: (1) after the death of the veteran, to the surviving spouse, or, if there is no surviving spouse, to children of the veteran under 18 years of age at the time of the veteran's death. (2) after the death of the surviving spouse, to children of the spouse under 18 years of age at the time of the spouse's death. (3) after the death of an apportionee of a part of the veteran's pension, compensation, or emergency officers' retirement pay but before all of the apportioned amount is paid to the veteran, the apportioned amount not paid. (4) in any other case, only to the extent necessary to reimburse a person for burial expenses. (d)(1) A payment may be made under subsection (c) of this section only if a claim for payment is— (A) filed with the Administrator by the end of the first year after the date of the death of the individual entitled to payment; and (B) completed by submitting the necessary evidence by the 6th month after the date the Administrator requests the evidence. (2) Payment shall include only amounts due at the time of death under ratings or decisions existing at the time of the death.

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 PUBLIC LAW 97-258—SEPT. 13, 1982 § 3331. Substitute checks (a) In this section, "original check"— (1) means an order for the payment of money— (A) payable on demand; (B) that does not bear interest; (C) drawn by an authorized disbursing official or agent of the United States Government; and (D) the amount of which is deposited with the Treasury or another account available for payment; and (2) does not include coins and currency of the Government. (b) When the Secretary of the Treasury is satisfied that an original check is lost, stolen, destroyed in any part, or is so defaced that the value to the owner or holder is impaired, the Secretary may issue a substitute check to the owner or holder of the original check. Except as provided in subsection (c) of this section, the substitute check is payable from the amount available to pay the original check. (c) When the Secretary is satisfied that an original check drawn on a depositary in a foreign country or a territory or possession of the United States is lost, stolen, destroyed in part, or is so defaced that its value to the owner or holder is impaired, the drawer of the original check (or another official designated by the Secretary with the approval of the head of the agency on whose behalf the original check was issued) may issue to the owner or holder of the check a substitute check. The drawer or official shall issue the substitute check by the last day of the fiscal year after the fiscal year in which the original check was issued— (1) using the current date; and (2) drawn on the account of the drawer of the original check or another account available for payment of the substitute. (d) A substitute check issued under this section— (1) may be paid only if the original check has not been paid; (2) shall include information necessary to identify the original check; (3) that is drawn on the Treasury— (A) is deemed to be an original check; and (B) is paid under the same conditions as the original check; and (4) does not relieve a disbursing or certifying official from liability to the Government for payment resulting from erroneously issuing the original check. (e) Before issuing a substitute check under this section, the Secretary may require the owner or holder of the original check to agree to indemnify the Government with security in the form and amount the Secretary decides is necessary. § 3332. Checks payable to financial organizations designated by Government officers and employees (a) In this section, "financial organization" means a bank, savings and loan association or similar institution, or a credit union chartered by the United States Government or a State. (b) An officer or employee of an agency may designate in writing not more than 3 financial organizations to which a payment of pay of the officer or employee shall be sent and the amount to be sent to each organization. The head of the agency shall authorize a disburs-

96 STAT. 955 "Original check."

"Financial organization.'

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Regulations.

PUBLIC LAW 97-258—SEPT. 13, 1982 ing official to issue a check payable to each of the organizations in the amount designated for— (1) credit to the checking account of the officer or employee; (2) deposit of savings for the officer or employee; or (3) buying shares for the officer or employee. (c) An agency is not reimbursed for the cost of issuing one check requested by an officer or employee under subsection (b) of this section. However, a financial organization (except a financial organization designated by an officer or employee of either House of Congress) shall reimburse the agency for the cost of each additional check issued. The check for which the agency is not reimbursed is the check in the largest amount. (d) If more than one officer or employee making a designation under this section designates the same financial organization, the head of the agency may authorize a disbursing official to issue a check payable to the organization for the total amount designated by the officers and employees, accompanied by a schedule stating the amount to be credited to the account of each officer and employee. (e) Payment by the Government by more than one check, issued under this section and properly endorsed, is complete payment of the amount due to the officer or employee requesting payment. (f) On the written request of a person to whom payment is to be made, this section may be applied to any class of recurring payments. (g) The Secretary of the Senate shall prescribe regulations for the Senate in carrying out this section. With the approval of the Committee on House Administration of the House of Representatives, the Clerk of the House shall prescribe regulations for the House in carrying out this section. The Secretary of the Treasury shall prescribe regulations for all other agencies in carrying out this section. § 3333. Relief for payments made without negligence (a)(1) The Secretary of the Treasury is not liable for a payment made by the Secretary or depositary in due course and without negligence, of a— (A) check, draft, or warrant drawn on the Treasury or the depositary; and (B) debt obligation guaranteed or assumed by the United States Government. (2) The Comptroller General shall credit the accounts of the Treasury or the depositary for the payment. (b) This section does not relieve another individual from civil or criminal liability for a check, draft, warrant, or debt obligation of the Government. SUBCHAPTER III—MISCELLANEOUS § 334L Sale of Government warrants, checks, drafts, and obligations (a) A disbursing official of the United States Government may sell a Government warrant, check, draft, or obligation not the property of the official at a premium, or dispose of the proceeds of the warrant, check, draft, or obligation, only if the official deposits the premium and the proceeds in the Treasury or with a depositary for the credit of the Government.

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(b) A disbursing official violating subsection (a) of this section Penalty. shall be dismissed immediately. § 3342. Check cashing and exchange transactions (a) A disbursing official of the United States Government may— (1) cash and negotiate negotiable instruments payable in United States currency or currency of a foreign country; (2) exchange United States currency, coins, and negotiable instruments and currency, coins, and negotiable instruments of foreign countries; and (3) cash checks drawn on the Treasury to accommodate United States citizens in a foreign country, but only if— (A) satisfactory banking facilities are not available in the foreign country; and (B) a check is presented by the payee who is a United States citizen. (b) A disbursing official may act under subsection (a)(1) and (2) of this section only for— (1) an official purpose; (2) personnel of the Government; (3) a veteran hospitalized or living in an institution operated by an agency; (4) a contractor, or personnel of a contractor, carrying out a Government project; and (5) personnel of an authorized agency not part of the Government that operates with an agency of the Government. (c)(1) An amount held by the disbursing official that is available for expenditure may be used to carry out subsection (a) of this section with the approval of the head of the agency having jurisdiction over the amount. (2) The head of an agency having jurisdiction over a disbursing official may offset, within the same fiscal year, a deficiency resulting from a transaction under subsection (a) of this section with a gain from a transaction under subsection (a). A gain in the account of a disbursing official not used to offset deficiencies under subsection (a) shall be deposited in the Treasury as miscellaneous receipts. (3) Amounts necessary to adjust for deficiencies in the account of a disbursing official because of transactions under subsection (a) of this section are authorized to be appropriated. (d) The Secretary of the Treasury and, with the approval of the Secretary, the head of an agency having jurisdiction over a disbursing official, may issue regulations to carry out this section. However, under conditions the Secretary decides are necessary, the Secretary may delegate to the head of an agency the authority to issue regulations applying to a disbursing official that is an officer or employee of the agency. § 3343. Check forgery insurance fund (a) The Department of the Treasury has a special deposit revolving fund, the "Check Forgery Insurance 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. (b) The Secretary of the Treasury shall pay from the Fund to a payee or special endorsee of a check drawn on the Treasury or a depositary designated by the Secretary the amount of the check without interest if—

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PUBLIC LAW 97-258—SEPT. 13, 1982 (1) the check was lost or stolen without the fault of the payee or a holder that is a special endorsee and whose endorsement is necessary for further negotiation; (2) the check was negotiated later and paid by the Secretary or a depositary on a forged endorsement of the payee's or special endorsee's name; (3) the payee or special endorsee has not participated in any part of the proceeds of the negotiation or payment; and (4) recovery from the forger, a transferee, or a party on the check after the forgery has been or may be delayed or unsuccessful. (c) Notwithstanding section 1306 of this title, a check drawn on a designated depositary may be paid in the currency of a foreign country when the appropriate accountable official authorizes payment in that currency. (d) The Secretary shall deposit immediately to the credit of the Fund an amount recovered from a forger or a transferee or party on the check. However, currency of a foreign country recovered because of a forged check drawn on a designated depositary shall be credited to the Fund or to the foreign currency fund that was charged when payment was made under subsection (b) of this section to the payee or special endorsee. (e) This section does not relieve— (1) a forger from civil or criminal liability; or (2) a transferee or party on a check after the forgery from liability— (A) on the express or implied warranty of prior endorsements of the transferee or party; or (B) to refund amounts to the Secretary. CHAPTER 35—ACCOUNTING AND COLLECTION SUBCHAPTER I—GENERAL Sec. 3501.

3511. 3512. 3513. 3514. 3521. 3522. 3523. 3524. 3525. 3526. 3527. 3528. 3529. 3530. 3531. 3532.

Definition. SUBCHAPTER II—ACCOUNTING REQUIREMENTS, SYSTEMS, AND INFORMATION Prescribing accounting requirements and developing accounting systems. Executive agency accounting systems. Financial reporting and accounting system. Discontinuing certain accounts maintained by the Comptroller General. SUBCHAPTER III—AUDITING AND SETTLING ACCOUNTS Audits by agencies. Making and submitting accounts. General audit authority of the Comptroller General. Auditing expenditures approved without vouchers. Auditing nonappropriated fund activities. Settlement of accounts. General authority to relieve accountable officials and agents from liability Responsibilities and relief from liability of certifying officials. Requests for decisions of the Comptroller General. Adjusting accounts. Property returns. Notification of account deficiencies.

SUBCHAPTER IV—COLLECTION 3541. Distress warrants. 3542. Carrying out distress warrants. 3543. Postponing a distress warrant proceeding.

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Sec. 3544. Rights and remedies of the United States Government reserved. 3545. Civil action to recover money.

SUBCHAPTER I—GENERAL §3501. Definition In this chapter, "executive agency" does not include (except in section 3513 of this title) a corporation, agency, or instrumentality subject to chapter 91 of this title.

"Executive agency. Post, p. 1041.

SUBCHAPTER II—ACCOUNTING REQUIREMENTS, SYSTEMS, AND INFORMATION § 3511. Prescribing accounting requirements and developing accounting systems (a) The Comptroller General shall prescribe the accounting principles, standards, and requirements that the head of each executive agency shall observe. Before prescribing the principles, standards, and requirements, the Comptroller General shall consult with the Secretary of the Treasury and the President on their accounting, financial reporting, and budgetary needs, and shall consider the needs of the heads of the other executive agencies. (b) Requirements prescribed under subsection (a) of this section shall— (1) provide for suitable integration between the accounting process of each executive agency and the accounting of the Department of the Treasury; (2) allow the head of each agency to carry out section 3512 of this title; and (3) provide a method of— (A) integrated accounting for the United States Government; (B) complete disclosure of the results of the financial operations of each agency and the Government; and (C) financial information and control the President and Congress require to carry out their responsibilities, (c) Consistent with subsections (a) and (b) of this section— (1) the authority of the Comptroller General continues under section 205(b) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 486(b)); and (2) the Comptroller General may prescribe the forms, systems, and procedures that the judicial branch of the Government (except the Supreme Court) shall observe. (d) The Comptroller General, the Secretary, and the President shall conduct a continuous program for improving accounting and financial reporting in the Government. § 3512. Executive agency accounting systems (a) The head of each executive agency shall establish and main- Establishment, tain systems of accounting and internal controls that provide— (1) complete disclosure of the financial results of the activities of the agency; (2) adequate financial information the agency needs for management purposes; (3) effective control over, and accountability for, assets for which the agency is responsible, including internal audit; (4) reliable accounting results that will be the basis for—

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Report to Congress.

PUBLIC LAW 97-258—SEPT. 13, 1982 (A) preparing and supporting the budget requests of the agency; (B) controlling the carrying out of the agency budget; and (C) providing financial information the President requires under section 1104(e) of this title; and (5) suitable integration of the accounting of the agency with the central accounting and reporting responsibilities of the Secretary of the Treasury under section 3513 of this title. (b) To assist in preparing a cost-based budget under section 1108(b) of this title and consistent with principles and standards the Comptroller General prescribes, the head of each executive agency shall maintain the accounts of the agency on an accrual basis to show the resources, liabilities, and costs of operations of the agency. An accounting system under this subsection shall include monetary property accounting records. (c) The Comptroller General shall— (1) cooperate with the head of each executive agency in developing an accounting system for the agency; and (2) approve the system when the Comptroller General considers it to be adequate and in conformity with the principles, standards, and requirements prescribed under section 3511 of this title. (d) The Comptroller General shall review the accounting systems of each executive agency. The results of a review shall be available to the head of the executive agency, the Secretary, and the President. The Comptroller General shall report to Congress on a review when the Comptroller General considers it proper. § 3513. Financial reporting and accounting system (a) The Secretary of the Treasury shall prepare reports that will inform the President, Congress, and the public on the financial operations of the United States Government. The reports shall include financial information the President requires. The head of each executive agency shall give the Secretary reports and information on the financial conditions and operations of the agency the Secretary requires to prepare the reports. (b) The Secretary may— (1) establish facilities necessary to prepare the reports; and (2) reorganize the accounting functions and procedures and financial reports of the Department of the Treasury to develop an effective and coordinated system of accounting and financial reporting in the Department that will integrate the accounting results for the Department and be the operating center for consolidating accounting results of other executive agencies with accounting results of the Department. (c) The Comptroller General shall— (1) cooperate with the Secretary in developing and establishing the reporting and accounting system under this section; and (2) approve the system when the Comptroller General considers it to be adequate and in conformity with the principles, standards, and requirements prescribed under section 3511 of this title. § 3514. Discontinuing certain accounts maintained by the Comptroller General The Comptroller General may discontinue an agency appropriation, expenditure, limitation, receipt, or personal ledger account

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maintained by the Comptroller General when the Comptroller General believes that the accounting system and internal controls of the agency will allow the Comptroller General to carry out the functions related to the account. SUBCHAPTER III—AUDITING AND SETTLING ACCOUNTS § 3521. Audits by agencies (a) Each account of an agency shall be audited administratively before being submitted to the Comptroller General. The head of Regulations, each agency shall prescribe regulations for conducting the audit and designate a place at which the audit is to be conducted. However, a disbursing official of an executive agency may not administratively audit vouchers for which the official is responsible. With the consent of the Comptroller General, the head of the agency may waive any part of an audit. (b) The head of an agency may prescribe a statistical sampling procedure to audit vouchers of the agency when the head of the agency decides economies will result from using the procedure. The Comptroller General— (1) may prescribe the maximum amount of a voucher that may be audited under this subsection; and (2) in reviewing the accounting system of the agency, shall evaluate the adequacy and effectiveness of the procedure. (c) A disbursing or certifying official acting in good faith under subsection (b) of this section is not liable for a payment or certification of a voucher not audited specifically because of the procedure prescribed under subsection (b) if the official and the head of the agency carry out diligiently collection action the Comptroller General prescribes. (d) Subsections Qa) and (c) of this section do not— (1) affect the liability, or authorize the relief, of a payee, beneficiary, or recipient of an illegal, improper, or incorrect payment; or (2) relieve a disbursing or certifying official, the head of an agency, or the Comptroller General of responsibility in carrying out collection action against a payee, beneficiary, or recipient. § 3522. Making and submitting accounts (a)(1) Unless the Comptroller General decides the public interest requires that an account be made more frequently, each disbursing official shall make a quarterly account. An official or agent of the United States Government receiving public money not authorized to be kept as pay of the official or agent shall make a monthly account of the money. (2) An official or agent of the Government receiving public money shall make an account of public money received by the official or agent according to the appropriation from which the money was advanced. (b)(1) A monthly account shall be submitted to the appropriate official in the District of Columbia by the 10th day after the end of the month covered by the account. The official shall submit the account to the Comptroller General by the 20th day after receiving the account. (2) An account (except a monthly account) shall be submitted to the appropriate official in the District of Columbia by the 20th day

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PUBLIC LAW 97-258—SEPT. 13, 1982 after the end of the period covered by the account. The official shall submit the account to the Comptroller General by the 60th day after receiving the account. (3) Notwithstanding paragraphs (1) and (2) of this subsection, an account of the armed forces shall be submitted to the Comptroller General by the 60th day after the account is received. However, during a war or national emergency and for 18 months after the war or emergency ends, an account shall be submitted to the Comptroller General by the 90th day after the account is received. (4) Notwithstanding paragraphs (1) and (2) of this subsection, an account of a disbursing official of the Department of Justice shall be submitted to the Comptroller General by the 80th day after the account is received. (c) An official shall give evidence of compliance with subsection (b) of this section if an account is not received within a reasonable time after the time required by subsection (b). (d) The head of an agency may require other returns or reports about the agency that the public interest requires. (e)(1) The Comptroller General shall disapprove a requisition for an advance of money if an account from which the advance is to be made is not submitted to the Comptroller General within the time required by subsection (b) of this section. The Comptroller General may disapprove the request for another reason related to the condition of an account of the official for whom the advance is requested. However, the Secretary of the Treasury may overrule the decision of the Comptroller General on the sufficiency of the other reasons. (2) The Secretary may extend the time requirements of subsection (b)(1) and (2) of this section for submitting an account to the proper official in the District of Columbia or waive a condition of delinquency only when there is, or is likely to be, a manifest physical difficulty in complying with those requirements. If an account is not submitted to the Comptroller General on time under subsection (b), an order of the President or, if the President is ill or not in the District of Columbia, the Secretary is required to authorize an advance.

Report to Congress.

§ 3523. General audit authority of the Comptroller General (a) Except as specifically provided by law, the Comptroller General shall audit the financial transactions of each agency. In deciding on auditing procedures and the extent to which records are to be inspected, the Comptroller General shall consider generally accepted auditing principles, including the effectiveness of accounting organizations and systems, internal audit and control, and related administrative practices of each agency. (b) The Comptroller General shall audit the Architect of the Capitol at times the Comptroller General considers appropriate. Section 716 of this title applies to the Architect in conducting the audit. The Comptroller General shall report the results of the audit ^Q Congress. Each report shall be printed as a Senate document. (c)(1) When the Comptroller General decides an audit shall be conducted at a place at which the records of an executive agency or the Architect of the Capitol are usually kept, the Comptroller General may require the head of the agency or the Architect to keep any part of an account of an accountable official or of a record required to be submitted to the Comptroller General. The Comptroller General may require records be kept under conditions and for a period of not more than 10 years specified by the Comptroller

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General. However, the Comptroller General and the head of the agency or the Architect may agree on a longer period. (2) The Comptroller General and the head of an agency in the legislative or judicial branch of the United States Government (except the Architect) may agree to apply this subsection to the agency. § 3524. Auditing expenditures approved without vouchers (a)(1) The Comptroller General may audit expenditures, accounted for only on the approval, authorization, or certificate of the President or an official of an executive agency, to decide if the expenditure was authorized by law and made. Records and related information shall be made available to the Comptroller General in conducting the audit. (2) The Comptroller General may release the results of the audit or disclose related information only to the President or head of the agency, or, if there is an unresolved discrepancy, to the Committee on Governmental Affairs of the Senate, the Committee on Government Operations of the House of Representatives, and the committees of Congress having legislative or appropriation oversight of the expenditure. (b) Before December 1 of each year, the Director of the Office of Report to Management and Budget shall submit a report listing each account congressional that may be subject to this section to the Committees on the Budget committees. and Appropriations of both Houses of Congress, the Committee on Governmental Affairs, and to the Committee on Government Operations, and to the Comptroller General. (c) The President may exempt from this section a financial trans- Exemption action about sensitive foreign intelligence or foreign counter-intelligence activities or sensitive law enforcement investigations if an audit would expose the identifying details of an active investigation or endanger investigative or domestic intelligence sources involved in the investigation. The exemption may apply to a class or category of financial transactions. (d) This section does not— (1) apply to expenditures under section 102, 103, 105(d)(1), (3), or (5), or 106(b)(2) or (3) of title 3; or (2) affect authority under section 8(b) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403j(b)). (e) Information about a financial transaction exempt under subsection (c) of this section or a financial transaction under section 8(b) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403j(b)) may be reviewed by the Permanent Select Committee on Intelligence of the House and the Select Committee on Intelligence of the Senate. (0 Subsections (a)(1) and (d)(1) of this section may be superseded only by a law enacted after April 3, 1980, specifically repealing or amending this section. § 3525. Auditing nonappropriated fund activities (a) The Comptroller General may audit— (1) the operations and accounts of each nonappropriated fund and related activities authorized or operated by the head of an executive agency to sell goods or services to United States Government personnel and their dependents; (2) accounting systems and internal controls of the fund and related activities; and

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PUBLIC LAW 97-258—SEPT. 13, 1982 (3) internal or independent audits or reviews of the fund and related activities. (b) The head of each executive agency promptly shall provide the Comptroller General with— (1) a copy of the annual report of a nonappropriated fund and related activities subject to this section when the Comptroller General— (A) requires a report for a designated class of each fund and related activities having gross sales receipts of more than $100,000 a year; or (B) specifically requests a report for another fund and related activities; and (2) a statement on the yearly financial operations, financial condition, and cash flow and other yearly information about the fund and related activities that the head of the agency and the Comptroller General agree on if the information is not included in the annual report. (c) Records and property of a fund and related activities subject to this section shall be made available to the Comptroller General to the extent the Comptroller General considers necessary. § 3526. Settlement of accounts (a) The Comptroller General shall settle all accounts of the United States Government and supervise the recovery of all debts finally certified by the Comptroller General as due the Government. (b) A decision of the Comptroller General under section 3529 of this title is conclusive on the Comptroller General when settling the account containing the payment. (c)(1) The Comptroller General shall settle an account of an accountable official within 3 years after the date the Comptroller General receives the account. A copy of the certificate of settlement shall be provided the official. (2) The settlement of an account is conclusive on the Comptroller General after 3 years after the account is received by the Comptroller General. However, an amount may be charged against the account after the 3-year period when the Government has or may have lost money because the official acted fraudulently or criminally. (3) A 3-year period under this subsection is suspended during a war. (4) This subsection does not prohibit— (A) recovery of public money illegally or erroneously paid; (B) recovery from an official of a balance due the Government under a settlement within the 3-year period; or (C) an official from clearing an account of questioned items as prescribed by law. (d) On settling an account of the Government, the balance certified by the Comptroller General is conclusive on the executive branch of the Government. On the initiative of the Comptroller General or on request of an individual whose accounts are settled or the head of the agency to which the account relates, the Comptroller General may change the account within a year after settlement. The decision of the Comptroller General to change the account is conclusive on the executive branch. (e) When an amount of money is expended under law for a treaty or relations with a foreign country, the President may—

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 PUBLIC LAW 97-258—SEPT. 13, 1982 (1) authorize the amount to be accounted for each year specifically by settlement of the Comptroller General when the President decides the amount expended may be made public; or (2) make, or have the Secretary of State make, a certificate of the amount expended if the President decides the amount is not to be accounted for specifically. The certificate is a sufficient voucher for the amount stated in the certificate. (f) The Comptroller General shall keep all settled accounts, vouchers, certificates, and related papers until they are disposed of as prescribed by law. (g) This subchapter does not prohibit the Comptroller General from suspending an item in an account to get additional evidence or explanations needed to settle an account. § 3527. General authority to relieve accountable officials and agents from liability (a) Except as provided in subsection (b) of this section, the Comptroller General may relieve a present or former accountable official or agent of an agency responsible for the physical loss or deficiency of public money, vouchers, checks, securities, or records, or may authorize reimbursement from an appropriation or fund available for the activity in which the loss or deficiency occurred for the amount of the loss or deficiency paid by the official or agent as restitution, when— (1) the head of the agency decides that— (A) the official or agent was carrying out official duties when the loss or deficiency occurred, or the loss or deficiency occurred because of an act or failure to act by a subordinate of the official or agent; and (B) the loss or deficiency was not the result of fault or negligence by the official or agent; (2) the loss or deficiency was not the result of an illegal or incorrect payment; and (3) the Comptroller General agrees with the decision of the head of the agency. (b)(1) The Comptroller General shall relieve a disbursing official of the armed forces responsible for the physical loss or deficiency of public money, vouchers, or records, or shall authorize reimbursement, from an appropriation or fund available for reimbursement, of the amount of the loss or deficiency paid by or for the official as restitution, when— (A) the Secretary of Defense or the appropriate Secretary of the military department of the Department of Defense decides that the official was carrying out official duties when the loss or deficiency occurred; (B) the loss or deficiency was not the result of an illegal or incorrect payment; and (C) the loss or deficiency was not the result of fault or negligence by the official. (2) The finding of the Secretary involved is conclusive on the Comptroller General. (c) On the initiative of the Comptroller General or written recommendation of the head of an agency, the Comptroller General may relieve a present or former disbursing official of the agency responsible for a deficiency in an account because of an illegal, improper, or incorrect payment, and credit the account for the deficiency, when the Comptroller General decides that the payment was not the

96 STAT. 965

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 96 STAT. 966

PUBLIC LAW 97-258—SEPT. 13, 1982 result of bad faith or lack of reasonable care by the official. However, the Comptroller General may deny relief when the Comptroller General decides the head of the agency did not carry out diligently collection action under procedures prescribed by the Comptroller General. (d)(l) When the Comptroller General decides it is necessary to adjust the account of an official or agent granted relief under subsection (a) or (c) of this section, the amount of the relief shall be charged— (A) to an appropriation specifically provided to be charged; or (B) if no specific appropriation, to the appropriation or fund available for the expense of the accountable function when the adjustment is carried out. (2) Subsection (c) of this section does not— (A) affect the liability, or authorize the relief, of a payee, beneficiary, or recipient of an illegal, improper, or incorrect payment; or (B) relieve an accountable official, the head of an agency, or the Comptroller General of responsibility in carrying out collection action against a payee, beneficiary, or recipient. (e) Relief provided under this section is in addition to relief provided under another law. § 3528. Responsibilities and relief from liability of certifying officials (a) A certifying official certifying a voucher is responsible for— (1) information stated in the certificate, voucher, and supporting records; (2) the computation of a certified voucher under this section and section 3325 of this title; (3) the legality of a proposed payment under the appropriation or fund involved; and (4) repaying a payment— (A) illegal, improper, or incorrect because of an inaccurate or misleading certificate; (B) prohibited by law; or (C) that does not represent a legal obligation under the appropriation or fund involved. (b) The Comptroller General may relieve a certifying official from liability when the Comptroller General decides that— (1) the certification was based on official records and the official did not know, and by reasonable diligence and inquiry could not have discovered, the correct information; or (2)(A) the obligation was incurred in good faith; (B) no law specifically prohibited the payment; and (C) the United States Government received value for payment. (c) The Comptroller General shall relieve a certifying official from liability for an overpayment— (1) to a common carrier under section 3726 of this title when the Comptroller General decides the overpayment occurred only because the administrative audit before payment did not verify transportation rates, freight classifications, or land-grant deductions; or (2) provided under a Government bill of lading or transportation request when the overpayment was the result of using

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Page:United States Statutes at Large Volume 96 Part 1.djvu/1009

 PUBLIC LAW 97-258—SEPT. 13, 1982

96 STAT. 967

improper transportation rates or classifications or the failure to deduct the proper amount under a land-grant law or agreement. (d) This section does not apply to disbursements of a military department of the Department of Defense, except disbursements for departmental pay and expenses in the District of Columbia. § 3529, Requests for decisions of the Comptroller General (a) A disbursing or certifying official or the head of an agency may request a decision from the Comptroller General on a question involving— (1) a payment the disbursing official or head of the agency will make; or (2) a voucher presented to a certifying official for certification. (b) The Comptroller General shall issue a decision requested under this section. § 3530. Adjusting accounts (a) An appropriation or fund currently available for the expense of an accountable function shall be charged with an amount necessary to adjust an account of an accountable official or agent when— (1) necessary to adjust the account for a loss to the United States Government resulting from the fault or negligence of the official or agent; and (2) the head of the agency decides the loss is uncollectable. (b) An adjustment does not affect the personal financial liability of an official or agent for the loss. (c) The Comptroller General shall prescribe regulations to carry Regulations. out subsection (a) of this section. (d) Under procedures prescribed by the Comptroller General, the head of an agency may charge the net amount of unpaid and overpaid balances in individual pay accounts against the appropriation for the fiscal year in which the balances occurred and from which the accounts were payable. The net amount shall be credited to and paid from the corresponding appropriation for the next fiscal year. § 3531. Property returns (a) The head of an executive department— (1) shall certify to the Comptroller General a charge against an official or agent entrusted with public property for the department resulting from a loss to the United States Government from the property because of fault of the official or agent; and (2) may not forward the property to the Comptroller General. (b)(1) A certificate under subsection (a) of this section shall state— (A) the condition of the property; (B) that the official or agent has had a reasonable opportunity to be heard but has not been relieved of liability; and (C) that the certificate includes all charges not certified previously. (2) The effect of information in the certificate is the same as if the Comptroller General had discovered the information when auditing the account. The Comptroller General shall charge the appropriate account for the amount of the loss. (c) Except as provided in subsection (a) of this section, this section does not affect the way a property return is made or liability for property is decided.

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Page:United States Statutes at Large Volume 96 Part 1.djvu/1010

 96 STAT. 968

PUBLIC LAW 97-258—SEPT. 13, 1982 § 3532. NotiHcation of account deficiencies An accounting official discovering a deficiency in an account of an official of the United States Government having custody of public money shall notify the head of the agency having jurisdiction of the official of the kind and amount of the deficiency. SUBCHAPTER IV—COLLECTION § 3541. Distress warrants (a) When an official receiving public money before it is paid to the Treasury or a disbursing or certifying official of the United States Government does not submit an account or pay the money as prescribed by law, the Comptroller General shall make the account for the official and certify to the Secretary of the Treasury the amount due the Government. GD) The Secretary shall issue a distress warrant against the official stating the amount due from the official and any amount paid. The warrant shall be directed to the marshal of the district in which the official resides. If the Secretary intends to take and sell the property of an official that is located in a district other than where the official resides, the warrant shall be directed to the marshal of the district in which the official resides and the marshal of the district in which the property is located. § 3542. Carrying out distress warrants (a) A marshal carrying out a distress warrant issued under section 3541 of this title shall seize the personal property of the official and sell the property after giving 10 days notice of the sale. Notice shall be given by posting an advertisement of the property to be sold in at least 2 public places in the town and county in which the property was taken or the town and county in which the owner of the property resides. If the property does not satisfy the amount due under the warrant, the official may be sent to prison until discharged by law. (b)(1) The amount due under a warrant is a lien on the real property of the official from the date the distress warrant is issued. The lien shall be recorded in the office of the clerk of the appropriate district court until discharged under law. (2) If the personal property of the official is not enough to satisfy a distress warrant, the marshal shall sell real property of the official after advertising the property for at least 3 weeks in at least 3 public places in the county or district where the property is located. A buyer of the real property has valid title against all persons claiming under the official. (c) The official shall receive that part of the proceeds of a sale remaining after the distress warrant is satisfied and the reasonable costs and charges of the sale are paid. § 3543. Postponing a distress warrant proceeding (a) A distress warrant proceeding may be postponed for a reasonable time if the Secretary of the Treasury believes the public interest will not be harmed by the postponement. (b)(1) A person adversely affected by a distress warrant issued under section 3541 of this title may bring a civil action in a district court of the United States. The complaint shall state the kind and extent of the harm. The court may grant an injunction to stay any

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 PUBLIC LAW 97-258—SEPT. 13, 1982 part of a distress warrant proceeding required by the action after the person applying for the injunction gives a bond in an amount the court prescribes for carrying out a judgment. (2) An injunction under this subsection does not affect a lien under section 3542(b)(1) of this title. The United States Government is not required to answer in a civil action brought under this subsection. (3) If the court dissolves the injunction on a finding that the civil action for the injunction was brought only for delay, the court may increase the interest rate imposed on amounts found due against the complainant to not more than 10 percent a year. The judge may grant or dissolve an injunction under this subsection either in or out of court. (c) A person adversely affected by a refusal to grant an injunction or by dissolving an injunction under subsection (b) of this section may petition a judge of a circuit court of appeals in which the district is located or the Supreme Court justice allotted to that circuit by giving the judge or justice a copy of the proceeding held before the district judge. The judge or justice may grant an injunction or allow an appeal if the judge or justice finds the case requires it. §3544. Rights and remedies of the United States Government reserved This subchapter does not affect a right or remedy the United States Government has by law to recover a tax, debt, or demand. § 3545. Civil action to recover money The Attorney General shall bring a civil action to recover an amount due to the United States Government on settlement of the account of a person accountable for public money when the person neglects or refuses to pay the amount to the Treasury. Any commission of that person and interest of 6 percent a year from the time the money is received by the person until repaid to the Treasury shall be added to the amount due on the account. The commission is forfeited when judgment is obtained. CHAPTER 37—CLAIMS SUBCHAPTER I—GENERAL Sec. 3701. Definitions. 3702. Authority of the Comptroller Gteneral to settle claims. SUBCHAPTER II—CLAIMS OF THE UNITED STATES GOVERNMENT 3711. Collection and compromise. 3712. Time limitations for presenting certain claims of the Government. 3713. Priority of Government claims. 3714. Keeping money due States in default. 3715. Buying real property of a debtor. SUBCHAPTER III—CLAIMS AGAINST THE UNITED STATES GOVERNMENT 3721. Claims of personnel of agencies and the District of Columbia government for personal property damage or loss. 3722. Claims of officers and employees at Government penal and correctional institutions. 3723. Small claims for privately owned property damage or loss. 3724. Claims for damages caused by the Feder^ Bureau of Investigation. 3725. Claims of non-nationals for personal injury or death in a foreign country. 3726. Payment for transportation.

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 96 STAT. 970

PUBLIC LAW 97-258—SEPT. 13, 1982 Sec. 3727. 3728. 3729. 3730. 3731.

Assignments of claims. Setoff against judgment. False claims. Civil actions for false claims. False claims procedure.

SUBCHAPTER I—GENERAL §3701. Definitions In this chapter— (1) "executive or legislative agency" means a department, agency, or instrumentality in the executive or legislative branch of the United States Government. (2) "military department" means the Departments of the Army, Navy, and Air Force. (3) "uniformed services" means the Army, Navy, Air Force, Marine Corps, Coast Guard, the Commissioned Corps of the National Oceanic and Atmospheric Administration, and the Commissioned Corps of the Public Health Service.

Report to Congress.

§ 3702. Authority of the Comptroller General to settle claims (a) Except as provided in this chapter or another law, the Comptroller General shall settle all claims of or against the United States Government. A claim that was not administratively examined before submission to the Comptroller General shall be examined by 2 officers or employees of the General Accounting Office independently of each other. (b)(1) A claim against the Government presented under this section must contain the signature and address of the claimant or an authorized representative. The claim must be received by the Comptroller General within 6 years after the claim accrues except— (A) as provided in this chapter or another law; or (B) a claim of a State, the District of Columbia, or a territory or possession of the United States. (2) When the claim of a member of the armed forces accrues during war or within 5 years before war begins, the claim must be presented to the Comptroller General within 5 years after peace is established or within the period provided in clause (1) of subsection, whichever is later. (3) The Comptroller General shall return a claim not received in the time required under this subsection with a copy of this subsection and no further communication is required. (c) A claim on a check or warrant that the records of the Comptroller General or the Secretary of the Treasury show as being paid must be presented to the Comptroller General or the Secretary within 6 years after the check or warrant was issued. (d) The Comptroller General shall report to Congress on a claim against the Government that is timely presented under this section that may not be adjusted by using an existing appropriation, and that the Comptroller General believes Congress should consider for legal or equitable reasons. The report shall include recommendations of the Comptroller General.

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Page:United States Statutes at Large Volume 96 Part 1.djvu/1013

 PUBLIC LAW 97-258—SEPT. 13, 1982 SUBCHAPTER II—CLAIMS OF THE UNITED STATES GOVERNMENT §3711. Collection and compromise (a) The head of an executive or legislative agency— (1) shall try to collect a claim of the United States Government for money or property arising out of the activities of, or referred to, the agency; (2) may compromise a claim of the Government of not more than $20,000 (excluding interest) that has not been referred to another executive or legislative agency for further collection action; and (3) may suspend or end collection action on a claim referred to in clause (2) of this subsection when it appears that no person liable on the claim has the present or prospective ability to pay a significant amount of the claim or the cost of collecting the claim is likely to be more than the amount recovered. (b) The Comptroller General has the same authority that the head of the agency has under subsection (a) of this section when the claim is referred to the Comptroller General for further collection action. Only the Comptroller General may compromise a claim arising out of an exception the Comptroller General makes in the account of an accountable official. (c)(1) The head of an executive or legislative agency may not act under subsection (a)(2) or (3) of this section on a claim that appears to be fraudulent, false, or misrepresented by a party with an interest in the claim, or that is based on conduct in violation of the antitrust laws. (2) The Secretary of Transportation may not compromise for less than $250 a penalty under section 6 of the Act of March 2, 1893 (45 U.S.C. 6), section 4 of the Act of April 14, 1910 (45 U.S.C. 13), section 9 of the Act of February 17, 1911 (45 U.S.C. 34), and section 25(h) of the Interstate Commerce Act (49 U.S.C. 26(h)). (d) A compromise under this section is final and conclusive unless gotten by fraud, misrepresentation, presenting a false claim, or mutual mistake of fact. An accountable official is not liable for an amount paid or for the value of property lost or damaged if the amount or value is not recovered because of a compromise under this section. (e) The head of an executive or legislative agency acts under— (1) regulations prescribed by the head of the agency; and (2) standards that the Attorney General and the Comptroller General may prescribe jointly. § 3712. Time limitations for presenting certain claims of the Government (a) Except as provided in this subsection, the United States Government must bring a civil action to enforce the liability of an endorser, transferor, depositary, or fiscal agent on a forged or unauthorized signature or endorsement on, or a change in, a check or warrant issued by the Secretary of the Treasury, the United States Postal Service, or a disbursing official or agent within 6 years after the check or warrant is presented to the drawee of the check or warrant for payment unless, within that period, written notice of the claim is given to the endorser, transferor, depositary, or fiscal agent. The period for bringing a civil action or giving notice is

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Page:United States Statutes at Large Volume 96 Part 1.djvu/1014

 96 STAT. 972

PUBLIC LAW 97-258—SEPT. 13, 1982 extended for 180 days if a claim is received under section 3702(c) of this title. (b) Notwithstanding subsection (a) of this section, a civil action may be brought within 2 years after the claim is discovered when an endorser, transferor, depositary, or fiscal agent fraudulently conceals the claim from an officer or employee of the Government entitled to bring the civil action. (c) The Comptroller General shall credit the appropriate account of the Treasury for the amount of a check or warrant for which a civil action cannot be brought because notice was not given within the time required under subsection (a) of this section if the failure to give notice was not the result of negligence of the Secretary. (d) The Government waives £dl claims against a person arising from dual pay from the Government if the dual pay is not reported to the Comptroller General for collection within 6 years from the last date of a period of dual pay.

11 USC 101.

§ 3713. Priority of Government claims (a)(1) A claim of the United States Government shall be paid first when— (A) a person indebted to the Government is insolvent and— (i) the debtor without enough property to pay all debts makes a voluntary assignment of property; (ii) property of the debtor, if absent, is attached; or (iii) an act of bankruptcy is committed; or (B) the estate of a deceased debtor, in the custody of the executor or administrator, is not enough to pay all debts of the debtor. (2) This subsection does not apply to a case under title 11. (b) A representative of a person or an estate (except a trustee acting under title 11) pasdng any part of a debt of the person or estate before paying a claim of the Government is liable to the extent of the payment for unpaid claims of the Government. § 3714. Keeping money due States in default The Secretary of the Treasury shall keep the necessary amount of money the United States Government owes a State when the State defaults in paying principal or interest on investments in stocks or bonds the State issues or guarantees and that the Government holds in trust. The money shall be used to pay the principal or interest or reimburse, with interest, money the Government advanced for interest due on the stocks or bonds. § 3715. Buying real property of a debtor The head of an agency for whom a civil action is brought against a debtor of the United States Government may buy real property of the debtor at a sale on execution of the real property of the debtor resulting from the action. The head of the agency may not bid more for the property than the amount of the judgment for which the property is being sold, and costs. The marshal of the district in which the sale is held shall transfer the property to the Government.

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