[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: 12CFR229.36]



[Page 563-564]

 

                       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. 229.36  Presentment and issuance of checks.



    (a) Payable through and payable at checks. A check payable at or 

through a paying bank is considered to be drawn on that bank for 

purposes of the expeditious return and notice of nonpayment requirements 

of this subpart.

    (b) Receipt at bank office or processing center. A check is 

considered received by the paying bank when it is received:

    (1) At a location to which delivery is requested by the paying bank;

    (2) At an address of the bank associated with the routing number on 

the check, whether in magnetic ink or in fractional form;

    (3) At any branch or head office, if the bank is identified on the 

check by name without address; or

    (4) At a branch, head office, or other location consistent with the 

name and address of the bank on the check if the bank is identified on 

the check by name and address.

    (c) [Reserved]

    (d) Liability of bank during forward collection. Settlements between 

banks for the forward collection of a check are final when made; 

however, a collecting bank handling a check for forward collection may 

be liable to a prior collecting bank, including the depositary bank, and 

the depositary bank's customer.

    (e) Issuance of payable-through checks. (1) A bank that arranges for 

checks payable by it to be payable through another bank shall require 

that the following information be printed conspicuously on the face of 

each check:

    (i) The name, location, and first four digits of the nine-digit 

routing number of the bank by which the check is payable; and

    (ii) The words ``payable through'' followed by the name of the 

payable-through bank.

    (2) A bank is responsible for damages under Sec. 229.38 to the 

extent that a check payable by it and not payable through another bank 

is labelled as provided in this section.

    (f) Same-day settlement. (1) A check is considered presented, and a 

paying bank must settle for or return the check pursuant to paragraph 

(f)(2) of this section, if a presenting bank delivers the check in 

accordance with reasonable delivery requirements established by the 

paying bank and demands payment under this paragraph (f)--

    (i) At a location designated by the paying bank for receipt of 

checks under this paragraph (f) that is in the check processing region 

consistent with the routing number encoded in magnetic ink on the check 

and at which the paying bank would be considered to have received the 

check under paragraph (b) of this section or, if no location is 

designated, at any location described in paragraph (b) of this section; 

and

    (ii) By 8 a.m. on a business day (local time of the location 

described in paragraph (f)(1)(i) of this section).





[[Page 564]]





    A paying bank may require that checks presented for settlement 

pursuant to this paragraph (f)(1) be separated from other forward-

collection checks or returned checks.

    (2) If presentment of a check meets the requirements of paragraph 

(f)(1) of this section, the paying bank is accountable to the presenting 

bank for the amount of the check unless, by the close of Fedwire on the 

business day it receives the check, it either:

    (i) Settles with the presenting bank for the amount of the check by 

credit to an account at a Federal Reserve Bank designated by the 

presenting bank; or

    (ii) Returns the check.

    (3) Notwithstanding paragraph (f)(2) of this section, if a paying 

bank closes on a business day and receives presentment of a check on 

that day in accordance with paragraph (f)(1) of this section, the paying 

bank is accountable to the presenting bank for the amount of the check 

unless, by the close of Fedwire on its next banking day, it either:

    (i) Settles with the presenting bank for the amount of the check by 

credit to an account at a Federal Reserve Bank designated by the 

presenting bank; or

    (ii) Returns the check.





If the closing is voluntary, unless the paying bank settles for or 

returns the check in accordance with paragraph (f)(2) of this section, 

it shall pay interest compensation to the presenting bank for each day 

after the business day on which the check was presented until the paying 

bank settles for the check, including the day of settlement.



[Reg. CC, 53 FR 19433, May 27, 1988, as amended by 54 FR 32047, Aug. 4, 

1989; 55 FR 21855, May 30, 1990; 57 FR 46972, Oct. 14, 1992; 60 FR 

51671, Oct. 3, 1995; 62 FR 13810, Mar. 24, 1997; 64 FR 59613, Nov. 3, 

1999]