B-168491, DEC. 15, 1969

B-168491, DEC. 15, 1969

CHECKS--NONRECEIPT--STATUTE OF LIMITATIONS CLAIM FOR PROCEEDS OF CHECK DATED JULY 10, 1950, ALLEGEDLY NEVER RECEIVED NOR NEGOTIATED BY CLAIMANT PAYEE IS AGAIN DENIED SINCE RECORDS EVIDENCE CHECK DOES NOT APPEAR ON OUTSTANDING LIST, APPARENTLY HAVING BEEN NEGOTIATED, PAID, AND DESTROYED, AS PROVIDED BY LAW, AND CLAIM IS BARRED BY 6-YEAR LIMITATION IN SEC. 2, ACT OF JUNE 22, 1926, 44 STAT. 761, WHICH IS EFFECTIVE AS TO CHECKS "APPEARING TO HAVE BEEN PAID." ALSO, SEC. 1, ACT OF JULY 11, 1947, AS AMENDED BY PUB. L. 85-183, 31 U.S.C. 132, IS NOT MADE APPLICABLE TO CHECKS ALREADY BARRED BY EARLIER LIMITATION STATUTE. UNDER 31 U.S.C. 528, TREASURY SECRETARY MAY ISSUE DUPLICATE CHECKS WITHIN 10-YEAR PERIOD FROM CHECK'S ISSUANCE ONLY WHERE CHECK HAS NOT BEEN PAID.

TO MR. SEGUNDO A. BETONIO:

YOUR LETTER OF OCTOBER 20, 1969, REQUESTS RECONSIDERATION OF THE DISALLOWANCE BY OUR CLAIMS DIVISION OF YOUR CLAIM FOR THE PROCEEDS OF CHECK NUMBER 10,234,490, SYMBOL 300, DATED JULY 10, 1950, MADE PAYABLE TO YOU IN THE AMOUNT OF $500.85.

YOU STATE THAT YOU NEVER RECEIVED THE CHECK, IT WAS NOT NEGOTIATED BY YOU, AND YOU BELIEVE IT WAS LOST OR STOLEN. HOWEVER, THE CLAIMS DIVISION INFORMED YOU BY LETTER OF SEPTEMBER 10, 1969, THAT OFFICIAL RECORDS INDICATE THE CHECK WAS NEGOTIATED IN DUE COURSE, PAID BY THE TREASURER OF THE UNITED STATES, AND DESTROYED AS PROVIDED BY LAW. WE HAVE NO RECORD OF THE CHECK HAVING BEEN LOST OR STOLEN, BUT EVEN IF THIS WAS THE CASE AND IT WAS ACTUALLY NEGOTIATED BY SOMEONE OTHER THAN YOURSELF, YOUR CLAIM IS BARRED BY SECTION 2 OF THE ACT OF JUNE 22, 1926, 44 STAT. 761, SINCE IT WAS NOT RECEIVED WITHIN SIX YEARS AFTER THE CHECK WAS ISSUED. INDICATED IN THE CLAIMS DIVISION LETTER, SECTION 2 IS EFFECTIVE AS TO CHECKS "APPEARING TO HAVE BEEN PAID." IT IS THE APPEARANCE OF PAYMENT, RATHER THAN ACTUAL PAYMENT TO YOU, WHICH BARS YOUR CLAIM AFTER SIX YEARS. SINCE YOUR CHECK IS NOT ON THE OUTSTANDING CHECK LIST, IT APPEARS TO HAVE BEEN NEGOTIATED IN DUE COURSE, PAID BY THE TREASURER OF THE UNITED STATES, AND DESTROYED AS PROVIDED BY LAW, AS INDICATED IN THE CLAIMS DIVISION LETTER OF SEPTEMBER 10, 1969. CLAIMANTS ARE EXPECTED TO SUBMIT THEIR CLAIMS WITHIN THE PRESCRIBED STATUTORY TIME LIMIT WHEN EVIDENCE IS STILL AVAILABLE TO MAKE A PROPER AND FAIR DETERMINATION OF THE FACTS, AND THIS IS ONE OF THE ESSENTIAL REASONS FOR STATUTES BARRING CLAIMS AFTER THE PASSAGE OF TIME.

THE PROVISION OF LAW THAT ALL CHECKS DRAWN BY THE TREASURER OF THE UNITED STATES SHALL BE PAYABLE WITHOUT LIMITATION OF TIME TO WHICH YOU REFER IS APPARENTLY SECTION 1 OF THE ACT OF JULY 11, 1947, 61 STAT. 308, AS AMENDED BY PUBLIC LAW 85-183, APPROVED AUGUST 28, 1957, 31 U.S.C. 132. IT BECAME EFFECTIVE ON AUGUST 28, 1957, THE DATE OF ENACTMENT OF THE AMENDMENT, AND DID NOT APPLY TO CHECKS WHICH HAD THERETOFORE BEEN BARRED BY THE SIX-YEAR STATUTE OF LIMITATION (31 U.S.C. 122). MOREOVER, THE SAME LAW (PUBLIC LAW 85-183) ALSO AMENDED THE SIX-YEAR STATUTE OF LIMITATION ON CHECKS APPEARING FROM THE RECORDS TO HAVE BEEN PAID WHICH LEAVES NO DOUBT BUT THAT THE SIX-YEAR STATUTE OF LIMITATION IS CONTROLLING WITH RESPECT TO YOUR CLAIM.

ALTHOUGH UNDER SECTION 3646, REVISED STATUTES, AS AMENDED, 31 U.S.C. 528, THE SECRETARY OF THE TREASURY MAY ISSUE A DUPLICATE CHECK WHEN HE HAS CLEAR PROOF THAT THE ORIGINAL IS LOST, STOLEN OR MUTILATED, AND WHEN IT HAS NOT BEEN PAID, HIS AUTHORITY TO DO SO EXPIRES TEN YEARS AFTER THE ORIGINAL WAS ISSUED. THIS APPARENTLY IS THE STATUTE YOU ERRONEOUSLY REFERRED TO AS PUBLIC LAW 243, 78TH CONGRESS, WITH RESPECT TO REPLACEMENT CHECKS.