2010 California Code
Government Code
Chapter 1. General

17400.  The State Treasurer may promulgate regulations as to the
redemption of state warrants and agency checks.



17401.  The State Treasurer may examine warrants and checks
presented for redemption and refuse payment of any item and shall
have a reasonable time to make such examination.



17402.  The presenting bank and the endorsers of a state warrant or
check presented to the Treasurer for redemption are deemed to
guarantee that all prior endorsements are genuine, whether or not an
express guaranty is placed on the item. When the first endorsement
has been made by one other than the payee personally, the presenting
bank and the endorsers are deemed to guarantee to the Treasurer, in
addition to other warranties, that the person who so endorsed had
unqualified capacity and authority to endorse the item on behalf of
the payee.


17403.  In any case in which the Treasurer redeems or gives credit
for a warrant or check, he or she may revoke the payment or credit
given by returning the warrant or check to the presenting financial
institution if, upon further examination, the item is found to bear a
forged, erroneous, or unauthorized endorsement or to contain any
material defect or alteration. Upon this revocation, the Treasurer
may deduct the amount of the item from any amount that is due or may
become due to the presenting financial institution or to obtain a
refund from the financial institution. This right is subject only to
the requirements that the item in question be returned at the time of
offset or collection and that no more than three years has elapsed
since the time that the instrument was presented to the financial
institution.



17404.  Upon notification from the State Treasurer that a forged or
erroneously endorsed state warrant has been charged back to the
presenting financial institution, the State Controller may process a
claim schedule directing payment to the original payee.