[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: 12CFR210.13]

[Page 321-322]
 
                       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. 210.13  Unpaid items.

    (a) Right of recovery. If a Reserve Bank does not receive payment in 
actually and finally collected funds for an item, the Reserve Bank shall 
recover by charge-back or otherwise the amount of the item from the 
sender, prior collecting bank, paying bank, or returning bank from or 
through which it was received, whether or not the

[[Page 322]]

item itself can be sent back. In the event of recovery from such a 
party, no party, including the owner or holder of the item, shall, for 
the purpose of obtaining payment of the amount of the item, have any 
interest in any reserve balance or other funds or property in the 
Reserve Bank's possession of the bank that failed to make payment in 
actually and finally collected funds.
    (b) Suspension or closing of bank. A Reserve Bank shall not pay or 
act on a draft, authorization to charge (including a charge authorized 
by Sec. 210.9(a)(5)), or other order on a reserve balance or other funds 
in its possession for the purpose of settling for items under Sec. 210.9 
or Sec. 210.12 after it receives notice of suspension or closing of the 
bank making the settlement for that bank's own or another's account.

[Reg. J, 59 FR 22966, May 4, 1994]