Mon, Dec 23, 2013
Washington, District Of Columbia
The Federal Reserve Board recently issued proposed changes to Regulation CC, which applies to the availability of funds and collection of checks. Currently, the check collection and return provisions in Regulation CC apply only to paper checks. Under the proposal, electronic checks and electronic returned checks that financial institutions exchange by agreement would also be subject to these rules, unless otherwise agreed by the sending and receiving institutions.
Also, the Fed is proposing alternative approaches to modify the current expeditious-return and notice of nonpayment requirements to encourage institutions that currently request paper returns to transition to electronic returns.
Further, the proposal would provide a new indemnity for electronic items that are cleared through the check-collection system that did not originate as paper checks. CUNA will summarize the proposed changes in our upcoming Call to Action to seek comments from credit unions, and will review these proposed changes with our Payments Policy Subcommittee.
Comments on the attached Federal Register notice are due by May 2, 2014.