[Code of Federal Regulations]

[Title 12, Volume 3]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR229.32]



[Page 560]

 

                       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. 229.32  Depositary bank's responsibility for returned checks.



    (a) Acceptance of returned checks. A depositary bank shall accept 

returned checks and written notices of nonpayment

    (1) At a location at which presentment of checks for forward 

collection is requested by the depositary bank; and

    (2) (i) At a branch, head office, or other location consistent with 

the name and address of the bank in its indorsement on the check;

    (ii) If no address appears in the indorsement, at a branch or head 

office associated with the routing number of the bank in its indorsement 

on the check;

    (iii) If the address in the indorsement is not in the same check 

processing region as the address associated with the routing number of 

the bank in its indorsement on the check, at a location consistent with 

the address in the indorsement and at a branch or head office associated 

with the routing number in the bank's indorsement; or

    (iv) If no routing number or address appears in its indorsement on 

the check, at any branch or head office of the bank.



A depositary bank may require that returned checks be separated from 

forward collection checks.

    (b) Payment. A depositary bank shall pay the returning or paying 

bank returning the check to it for the amount of the check prior to the 

close of business on the banking day on which it received the check 

(``payment date'') by--

    (1) Debit to an account of the depositary bank on the books of the 

returning or paying bank;

    (2) Cash;

    (3) Wire transfer; or

    (4) Any other form of payment acceptable to the returning or paying 

bank;



provided that the proceeds of the payment are available to the returning 

or paying bank in cash or by credit to an account of the returning or 

paying bank on or as of the payment date. If the payment date is not a 

banking day for the returning or paying bank or the depositary bank is 

unable to make the payment on the payment date, payment shall be made by 

the next day that is a banking day for the returning or paying bank. 

These payments are final when made.

    (c) Misrouted returned checks and written notices of nonpayment. If 

a bank receives a returned check or written notice of nonpayment on the 

basis that it is the depositary bank, and the bank determines that it is 

not the depositary bank with respect to the check or notice, it shall 

either promptly send the returned check or notice to the depositary bank 

directly or by means of a returning bank agreeing to handle the returned 

check expeditiously under Sec. 229.31(a), or send the check or notice 

back to the bank from which it was received.

    (d) Charges. A depositary bank may not impose a charge for accepting 

and paying checks being returned to it.



[53 FR 19433, May 27, 1988, as amended by Reg. CC, 54 FR 13850, Apr. 6, 

1989]