Federal Reserve Compliance Deadline: Availability of Funds and Collection of Checks

Compliance Deadlines Add to Calendar 2019-01-01 12:00:00 2019-01-01 12:00:00 Federal Reserve Compliance Deadline: Availability of Funds and Collection of Checks On September 17, 2018, the Board of Governors of the Federal Reserve System (Board) published a final rule amending Regulation CC. The regulation addresses situations where there is a dispute as to whether a check has been altered or was issued with an unauthorized signature, and the original paper check is not available for inspection. The final rule adopts a presumption of alteration for disputes over whether a substitute check or electronic check contains an alteration or is derived from an original check that was issued with an unauthorized signature of the drawer (e.g., a forgery). The presumption may be overcome by a preponderance of the evidence which establishes that a substitute check or electronic check does not contain an alteration or is derived from an original check that was issued with an unauthorized signature of the drawer. If the original check is made available for examination by all banks involved in the dispute, the presumption shall no longer apply. The final rule also modifies the terms “alteration” and “unauthorized signature” to now be consistent with their respective definitions in the Uniform Commercial Code (UCC). Final Regulation – 18-EF-13 Compliance Blog – 9/24/18 Download the latest full Compliance Calendar, including proposed regulations, past deadlines and more. Location NAFCU digital@nafcu.org America/New_York public

On September 17, 2018, the Board of Governors of the Federal Reserve System (Board) published a final rule amending Regulation CC.

The regulation addresses situations where there is a dispute as to whether a check has been altered or was issued with an unauthorized signature, and the original paper check is not available for inspection.

The final rule adopts a presumption of alteration for disputes over whether a substitute check or electronic check contains an alteration or is derived from an original check that was issued with an unauthorized signature of the drawer (e.g., a forgery). The presumption may be overcome by a preponderance of the evidence which establishes that a substitute check or electronic check does not contain an alteration or is derived from an original check that was issued with an unauthorized signature of the drawer. If the original check is made available for examination by all banks involved in the dispute, the presumption shall no longer apply. The final rule also modifies the terms “alteration” and “unauthorized signature” to now be consistent with their respective definitions in the Uniform Commercial Code (UCC).

Final Regulation – 18-EF-13

Compliance Blog – 9/24/18

Download the latest full Compliance Calendar, including proposed regulations, past deadlines and more.