[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: 12CFR229.33]



[Page 560-561]

 

                       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;



[[Page 561]]



    (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.

    (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).

    (d) Notification to customer. If the depositary bank receives a 

returned check or notice of nonpayment, it shall send or give 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.



[53 FR 19433, May 27, 1988, as amended at 69 FR 47311, Aug. 4, 2004]