Green Book

Reclamations

Overview

Section 1 defines reclamation and provides some background information on the subject. Section 2 covers an RDFI’s liability in the reclamation process. Topics include full and limited liability, calculating the limited liability amount, and exceptions to the liability rule. Section 3 gives RDFIs guidance on processing reclamations and provides an updated contact list for individuals needing additional information/assistance with reclamations.

May 2013 RevisionPDF file (723 kb)

Contents

Section 1: Background 5-3
Payments Subject to Reclamation 5-4

Section 2: Liability of a Receiving Depository
Financial Institution (RDFI)
5-5
A. Full Liability 5-5
Conditions for Liability 5-5
B. Limiting Liability 5-5
Conditions for Limiting Liability 5-5
Exceptions to Liability Rule 5-5
C. Calculating the Limited Liability Amount 5-6
45-day Liability Amount 5-6
Calculating the Limited Liability Amount: Example 1 5-6
Calculating the Limited Liability Amount: Example 2 5-7

Section 3: Reclamation Procedures 5-8
A. Notification of Death 5-8
Applicable Federal Regulation 31 CFR 210 6-2
Processing Timeframes 5-9
What to do upon Notification of Death 5-9
Holding Payments 5-10
Repayment by Survivors 5-10
Handling Survivor Requests not to Return Post-death Benefit Payments 5-10
B. Notice of Reclamation 5-10
Notice of Reclamation (FMS-133) 5-11
Sample (FMS-133) 5-12
How to Respond to the Notice of Reclamation 5-16
Steps to Take Under Liability 5-16
Incomplete or Inadequate RDFI Replies 5-17
Time Limits for Federal Reclamations 5-17
Follow-up to the Notice of Reclamation (FMS-2942) 5-18
Sample (FMS-2942 5-19
Federal Agency Collection from Withdrawers 5-20
Debit of the RDFI’s Account 5-20
How to Identify Debits using the Reclamation Ticket Number 5-21
Transaction Codes for ACH Reclamations 5-22
C. Errors in Death 5-23
If the Person Did Not Die 5-23
Types of Evidence 5-23
Accepting the Proof 5-23
Rejecting the Proof 5-24
Restarting Payments 5-24
If the Date of Death is Wrong 5-24
Day of the Month is Wrong 5-24
Month or Year is Wrong 5-25
Learning of an Error After Completing a Reclamation 5-26
Worksheet for Adjusting the Outstanding Total if the Date of Death is Wrong 5-26
D. Subsequent Reclamations 5-27
What to Do 5-27
Previous Debit 5-27
E. Contacts 5-28
   Last Updated:  March 14, 2014