[Code of Federal Regulations]
[Title 12, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR229.33]

[Page 539-540]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 229--AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS (REGULATION CC)--Table of Contents
 
                     Subpart C--Collection of Checks
 
Sec. 229.33  Notice of nonpayment.

    (a) Requirement. If a paying bank determines not to pay a check in 
the amount of $2,500 or more, it shall provide notice of nonpayment such 
that the notice is received by the depositary bank by 4:00 p.m. (local 
time) on the second business day following the banking day on which the 
check was presented to the paying bank. If the day the paying bank is 
required to provide notice is not a banking day for the depositary bank, 
receipt of notice on the depositary bank's next banking day constitutes 
timely notice. Notice may be provided by any reasonable means, including 
the returned check, a writing (including a copy of the check), 
telephone, Fedwire, telex, or other form of telegraph.
    (b) Content of notice. Notice must include the--
    (1) Name and routing number of the paying bank;
    (2) Name of the payee(s);
    (3) Amount;
    (4) Date of the indorsement of the depositary bank;
    (5) Account number of the customer(s) of the depositary bank;
    (6) Branch name or number of the depositary bank from its 
indorsement;
    (7) Trace number associated with the indorsement of the depositary 
bank; and
    (8) Reason for nonpayment.

The notice may include other information from the check that may be 
useful in identifying the check being returned and the customer, and, in 
the case of a written notice, must include the name and routing number 
of the depositary bank from its indorsement. If the paying bank is not 
sure of an item of information, it shall include the information 
required by this paragraph to the extent possible, and identify any item 
of information for which the bank is not sure of the accuracy with 
question marks.
    (c) Acceptance of notice. The depositary bank shall accept notices 
during its banking day--
    (1) Either at the telephone or telegraph number of its return check 
unit indicated in the indorsement, or, if no such number appears in the 
indorsement or if the number is illegible, at the general purpose 
telephone or telegraph number of its head office or the branch indicated 
in the indorsement; and
    (2) At any other number held out by the bank for receipt of notice 
of nonpayment, and, in the case of written notice, as specified in 
Sec. 229.32(a).

[[Page 540]]

    (d) Notification to customer. If the depositary bank receives a 
returned check or notice of nonpayment, it shall send notice to its 
customer of the facts by midnight of the banking day following the 
banking day on which it received the returned check or notice, or within 
a longer reasonable time.
    (e) Depositary bank without accounts. The requirements of this 
section do not apply to checks deposited in a depositary bank that does 
not maintain accounts.