[Federal Register Volume 59, Number 93 (Monday, May 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11761]


[[Page Unknown]]

[Federal Register: May 16, 1994]


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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 3

RIN 2900-AG51

 

Returned and Canceled Checks

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) has amended its 
regulations concerning returned and canceled checks. The amendment will 
assure that the regulations clearly reflect the requirements of the 
governing statutes as interpreted in a precedent opinion of VA's 
General Counsel. The intended effect of the amendment is to ensure that 
the amount represented by a benefit check received but unnegotiated 
prior to a beneficiary's death is properly distributed.

EFFECTIVE DATE: This amendment is effective June 15, 1994.

FOR FURTHER INFORMATION CONTACT:
Steven Thornberry, Consultant, Regulations Staff, Compensation and 
Pension Service, Veterans Benefits Administration, 810 Vermont Avenue, 
NW., Washington, DC 20420, telephone (202) 233-3005.

SUPPLEMENTARY INFORMATION: VA published a proposal to amend 38 CFR 
3.1003 in the Federal Register of September 3, 1993 (58 FR 46920-21). 
Interested persons were invited to submit written comments on or before 
October 4, 1993. No comments were received, and the amendments are 
adopted as proposed with the exception of the following technical 
amendment. Section 3.1003(a), as here amended, will provide that the 
amount represented by a returned and canceled check will be payable to 
the living person or persons in the order of precedence listed in 
Sec. 3.1000(a)(1)-(4), which deals with accrued benefits. Section 
3.1000(a)(4) provides, in effect, that, where there is no living person 
in the classes identified in Sec. 3.1000(a)(1)-(3), the amount of 
accrued benefits payable is limited to the amount necessary to 
reimburse the person who bore the expense of last sickness or burial. 
We are adding to Sec. 3.1003(a), as originally proposed, a similar 
statement to ensure that there is no confusion on the amount of a 
returned and canceled check that may be paid in such a situation.
    The Secretary hereby certifies that these regulatory amendments 
will not have a significant economic impact on a substantial number of 
small entities as they are defined in the Regulatory Flexibility Act 
(RFA), 5 U.S.C. 601-612. The reason for this certification is that 
these amendments would not directly affect any small entities. Only VA 
beneficiaries could be directly affected. Therefore, pursuant to 5 
U.S.C. 605(b), these amendments are exempt from the initial and final 
regulatory flexibility analysis requirements of sections 603 and 604.
    There is no affected Catalog of Federal Domestic Assistance program 
number.

List of Subjects in 38 CFR Part 3

    Administrative practice and procedure, Claims, Handicapped, Health 
care, Pensions, Veterans.

    Approved: January 31, 1994.
Jesse Brown,
Secretary of Veterans Affairs.

    For the reasons set forth in the preamble, 38 CFR Part 3 is amended 
to read as follows:

PART 3--ADJUDICATION

Subpart A--Pension, Compensation, Dependency and Indemnity 
Compensation

    1. The authority citation for part 3, subpart A continues to read 
as follows:

    Authority: 38 U.S.C. 501(a), unless otherwise noted.

    2. Section 3.1003 is revised to read as follows:


Sec. 3.1003  Returned and canceled checks.

    Where the payee of a check for benefits has died prior to 
negotiating the check, the check shall be returned to the issuing 
office and canceled.
    (a) The amount represented by the returned check, or any amount 
recovered following improper negotiation of the check, shall be payable 
to the living person or persons in the order of precedence listed in 
Sec. 3.1000(a)(1) through (4), except that the total amount payable 
shall not include any payment for the month in which the payee died 
(see Sec. 3.500(g)), and payments to persons described in 
Sec. 3.1000(a)(4) shall be limited to the amount necessary to reimburse 
such persons for the expenses of last sickness and/or burial.
    (1) There is no limit on the retroactive period for which payment 
of the amount represented by the check may be made, and no time limit 
for filing a claim to obtain the proceeds of the check or for 
furnishing evidence to perfect a claim.
    (2) Nothing in this section will preclude payment to an otherwise 
entitled claimant having a lower order of precedence under 
Sec. 3.1000(a)(1) through (4), if it is shown that the person or 
persons having a higher order of precedence are deceased at the time 
the claim is adjudicated.
    (b) Subject to the limitations in Sec. 3.500(g) of this part, any 
amount not paid in the manner provided in paragraph (a) of this section 
shall be paid upon settlement by the General Accounting Office to the 
estate of the deceased payee, provided that the estate, including the 
amount paid under this paragraph, will not escheat.
    (c) The provisions of this section do not apply to checks for lump 
sums representing amounts withheld under Sec. 3.551(b) or Sec. 3.557. 
These amounts are subject to the provisions of Sec. 3.1001 and 
Sec. 3.1007, as applicable.

    (Authority: 38 U.S.C. 501(a), 5122)

[FR Doc. 94-11761 Filed 5-13-94; 8:45 am]
BILLING CODE 8320-01-M