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NAFCU, through a Regulatory Alert sent to member credit unions Friday, would like to know how the Federal Reserve's proposed amendments to Regulation J would impact credit unions' operations.

NAFCU noted that the amendments would remove obsolete provisions and align the regulation with the Federal Reserve Board's recent amendments to Regulation CC related to the all-electronic check collection and return environment.

In the Regulatory Alert, the association asks for comments on:

• the impact of a policy that generally disfavors settlement in cash for cash items with a Reserve Bank;
• whether Regulation J should control when there are inconsistencies arising out of a financial messaging standard adopted by the Fedwire Funds Service;
• if there are any new challenges related to the handling of electronic checks or returned electronic checks;
• if the proposal to incorporate Regulation CC's warranties and indemnities into Regulation J by reference would create any specific challenges for credit unions; and
• any general concerns about the proposed amendments to Regulation J.

Credit unions can submit comments to NAFCU through its Regulatory Alert until April 27; comments are due to the Federal Reserve May 14.