More Hurricane Advisories: Savings Bonds, 401k Loans, Contaminated Checks

The Treasury's Bureau of the Public Debt advises hurricane victims they can redeem EE and I savings bonds that are less than a year old presented for payment from September through the end of November, 2005. Individuals in hurricane affected areas do not need proof of hardship. For redemption, follow guidelines in the Guide to Cashing Saving Bands (PD P 022) and the Identification Guide for Cashing Savings Bonds (Public Debt Form 3900).

Also, the Treasury Department and IRS announced that 401(k) plans and similar plans, such as those under section 403(b), will be permitted to make loans and hardship distributions to victims of Hurricane Katrina up to March 31, 2006.

Meantime, ICBA reported the Federal Reserve Banks recently issued guidelines to facilitate the collection of contaminated checks and minimize the potential for health issues. The guidelines recommend using the ACH destroyed check rules, a copy in lieu of the original check rules, or Check 21 rules to present checks for collection. If none of these alternatives is possible, a collecting bank should contact the paying bank to request instruction on direct presentment and collection. For more information, go to: http://www.frbservices.org/Retail/pdf/ContaminatedCheckProcedures91905.pdf

Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 10, 10/05