[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR210.13]

[Page 297]
 
                       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 item itself can be 
sent back. In the event of recovery from such a person, no person, 
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(b)(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, as amended at Reg. J, 69 FR 62561, 
Oct. 27, 2004]