12 USC 4008 - Regulations and reports by Board

U.S Code last checked for updates: Oct 17, 2024

§ 4008.

Regulations and reports by Board

(a)

In general

After notice and opportunity to submit comment in accordance with section 553(c) of title 5

(1)

to carry out the provisions of this chapter;

(2)

to prevent the circumvention or evasion of such provisions; and

(3)

to facilitate compliance with such provisions.

(b)

Regulations relating to improvement of check processing system

In order to improve the check processing system, the Board shall consider (among other proposals) requiring, by regulation, that—

(1)

depository institutions be charged based upon notification that a check or similar instrument will be presented for payment;

(2)

the Federal Reserve banks and depository institutions provide for check truncation;

(3)

depository institutions be provided incentives to return items promptly to the depository institution of first deposit;

(4)

the Federal Reserve banks and depository institutions take such actions as are necessary to automate the process of returning unpaid checks;

(5)

each depository institution and Federal Reserve bank—

(A)

place its endorsement, and other notations specified in regulations of the Board, on checks in the positions specified in such regulations; and

(B)

take such actions as are necessary to—

(i)

automate the process of reading endorsements; and

(ii)

eliminate unnecessary endorsements;

(6)

within one business day after an originating depository institution is presented a check (for more than such minimum amount as the Board may prescribe)—

(A)

such originating depository institution determines whether it will pay such check; and

(B)

if such originating depository institution determines that it will not pay such check, such originating depository institution directly notify the receiving depository institution of such determination;

(7)

regardless of where a check is cleared initially, all returned checks be eligible to be returned through the Federal Reserve System;

(8)

Federal Reserve banks and depository institutions participate in the development and implementation of an electronic clearinghouse process to the extent the Board determines, pursuant to the study under subsection (f), that such a process is feasible; and

(9)

originating depository institutions be permitted to return unpaid checks directly to, and obtain reimbursement for such checks directly from, the receiving depository institution.

(c)

Regulatory responsibility of Board for payment system

(1)

Responsibility for payment system

In order to carry out the provisions of this chapter, the Board of Governors of the Federal Reserve System shall have the responsibility to regulate—

(A)

any aspect of the payment system, including the receipt, payment, collection, or clearing of checks; and

(B)

any related function of the payment system with respect to checks.

(2)

Regulations

(d)

Reports

(1)

Implementation progress reports

(A)

Required reports

(B)

Contents of report

Each such report shall describe—

(i)

the actions taken and progress made by the Board to implement the schedules established in section 4002 of this title, and

(ii)

the impact of this chapter on consumers and depository institutions.

(2)

Evaluation of temporary schedule report

(A)

Report required

(B)

Contents of report

(3)

Comptroller General evaluation report

(e)

Consultations

(f)

Electronic clearinghouse study

(1)

Study required

(2)

Consultation; factors to be studied

In connection with the study required under paragraph (1), the Board shall—

(A)

consult with appropriate experts in telecommunications technology; and

(B)

consider all practical and legal impediments to the development of an electronic clearinghouse process.

(3)

Report required

(Pub. L. 100–86, title VI, § 609, Aug. 10, 1987, 101 Stat. 647; Pub. L. 111–203, title X, § 1086(d), July 21, 2010, 124 Stat. 2086.)

cite as: 12 USC 4008