[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR210.11]

[Page 319]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 210--COLLECTION OF CHECKS AND OTHER ITEMS BY FEDERAL RESERVE BANKS AND FUNDS TRANSFERS THROUGH FEDWIRE (REGULATION J)--Table of Contents
 
Subpart A--Collection of Checks and Other Items By Federal Reserve Banks
 
Sec. 210.11  Availability of proceeds of noncash items; time schedule.

    (a) Availability of credit. A Reserve Bank shall give credit to the 
sender for the proceeds of a noncash item when it receives payment in 
actually and finally collected funds (or advice from another Reserve 
Bank of such payment to it). The amount of the item is counted as 
reserve for purposes of part 204 of this chapter (Regulation D) and 
becomes available for use by the sender when the Reserve Bank receives 
the payment or advice, except as provided in paragraph (b) of this 
section.
    (b) Time schedule. A Reserve Bank may give credit for the proceeds 
of a noncash item subject to payment in actually and finally collected 
funds in accordance with a time schedule included in its operating 
circulars. The time schedule shall indicate when the proceeds of the 
noncash item will be counted as reserve for purposes of part 204 of this 
chapter (Regulation D) and become available for use by the sender. A 
Reserve Bank may, however, refuse at any time to permit the use of 
credit given by it for a noncash item for which the Reserve Bank has not 
yet received payment in actually and finally collected funds.
    (c) Handling of payment. If a Reserve Bank receives, in payment for 
a noncash item, a bank draft or other form of payment that it elects to 
handle as a noncash item, the Reserve Bank shall neither count the 
proceeds as reserve for purposes of part 204 of this chapter (Regulation 
D) nor make the proceeds available for use until it receives payment in 
actually and finally collected funds.

[45 FR 68634, Oct. 16, 1980, as amended at 62 FR 48173, Sept. 15, 1997]