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The Latest on Regulation CC: Amendments to Availability of Funds and Collection of Checks (12 CFR part 229)

Federal Reserve Board requests your comment on next proposal

May 31, 2017, from

The Board of Governors of the Federal Reserve System announced the final decision of an amendment to Regulation CC, Availability of Funds and Collection of Checks (12 CFR part 229), effective July 1st.

SUMMARY: The Board is amending subparts A, C, and D of Regulation CC, Availability of Funds and Collection of Checks (12 CFR part 229), which implements the Expedited Funds Availability Act of 1987 (EFA Act), the Check Clearing for the 21st Century Act of 2003 (Check 21 Act), and the official staff commentary to the regulation.1 In the final rule, the Board has modified the current check collection and return requirements to reflect the virtually all electronic check collection and return environment and to encourage all depository banks to receive, and paying banks to send, returned checks electronically. The Board has retained, without change, the current same-day settlement rule for paper checks. The Board is also applying Regulation CC’s existing check warranties under subpart C to checks that are collected electronically, and in addition, has adopted new warranties and indemnities related to checks collected and returned electronically and to electronically-created items

Read the full press release regarding the finalized amendment HERE.

Up Next - The Federal Reserve Board has requested comment on a proposed amendment regarding check alteration and forgery without the original paper check available for inspection.

SUMMARY: The Board is proposing to amend Regulation CC to address situations where there is a dispute as to whether a check has been altered or is a forgery, and the original paper check is not available for inspection. The proposed rule would adopt a presumption of alteration for any dispute over whether the dollar amount or the payee on a substitute check or electronic check has been altered or whether the substitute check or electronic check is derived from an original check that is a forgery. This rule is intended to provide clarity as to the burden of proof in these situations.

Read the full announcement HERE.

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