TFM: When used in reference to knowledge by a Receiving Depository Financial Institution (RDFI) of the death or legal incapacity of a recipient or death of a beneficiary; actual or constructive knowledge means that the RDFI received information, by whatever means, of the death or incapacity and has had a reasonable opportunity to act on such information or that the RDFI would have learned of the death or incapacity if it had followed commercially reasonable business practices.

Green Book: Under Title 31 CFR part 210, both agencies and RDFIs have obligations, rights and liabilities that are triggered by actual or constructive knowledge of the death or incapacity of a recipient or death of a beneficiary. Actual or constructive knowledge, when used in reference to a federal agency’s or RDFI’s knowledge of the death or legal incapacity of a recipient or death of a beneficiary, occurs when it receives information, by whatever means, of the death or incapacity and has had a reasonable opportunity to act on such information, or that the federal agency or RDFI would have learned of the death if it had followed commercially reasonable business practices.
A federal agency is presumed to have constructive knowledge of a death or legal incapacity at the time it stops certifying recurring payments to a recipient if the agency (1) does not re-initiate payments to the recipient and (2) subsequently initiates a reclamation for one or more benefit payments made to the recipient.