Recently, the Federal Reserve Board (FRB) issued a final rule amending Regulation CC, Availability of Funds and Collection of Checks (12 CFR Part 229), which implements the Expedited Funds Availability Act of 1987, and the Check Clearing for the 21st Century Act of 2003 , and the official staff commentary. The FRB initially proposed the amendments in February of 2014, which intended to facilitate the ongoing transition to fully-electronic interbank check collection and return.
The final rule modifies check collection/return requirements to reflect the electronic check collection and return system. The final rule also adopts new warranties and indemnities relating to electronically collected and returned checks (including remote deposits and mobile remote deposits) and to electronically-created items, and encourages all depositary banks to receive, and paying banks to send, returned checks electronically. The current same-day settlement rule for paper checks remains unchanged. The final rule is effective July 1, 2018.
The FRB also issued a proposed rule amending existing liability provisions to include a presumption that a substitute or electronic check was altered instead of forged in certain cases of doubt. Comments are due August 1, 2018.
By: Kari Osier, CUCE/BSACS, Compliance Specialist