[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: 12CFR229.52]



[Page 567]

 

                       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 D_Substitute Checks

 

Sec. 229.52  Substitute check warranties.



    (a) Content and provision of substitute check warranties. A bank 

that transfers, presents, or returns a substitute check (or a paper or 

electronic representation of a substitute check) for which it receives 

consideration warrants to the parties listed in paragraph (b) of this 

section that--

    (1) The substitute check meets the requirements for legal 

equivalence described in Sec. 229.51(a)(1)-(2); and

    (2) No depositary bank, drawee, drawer, or indorser will receive 

presentment or return of, or otherwise be charged for, the substitute 

check, the original check, or a paper or electronic representation of 

the substitute check or original check such that that person will be 

asked to make a payment based on a check that it already has paid.

    (b) Warranty recipients. A bank makes the warranties described in 

paragraph (a) of this section to the person to which the bank transfers, 

presents, or returns the substitute check or a paper or electronic 

representation of such substitute check and to any subsequent recipient, 

which could include a collecting or returning bank, the depositary bank, 

the drawer, the drawee, the payee, the depositor, and any indorser. 

These parties receive the warranties regardless of whether they received 

the substitute check or a paper or electronic representation of a 

substitute check.