The Board of Governors of the Federal Reserve System (Board) has amended Regulation CC (Availability of Funds and Collection of Checks) to clarify the extent to which depository institutions and others may vary the terms of the regulation, by agreement, for the purpose of instituting electronic return systems.
As a result of this amendment, credit unions may:
- Enter into agreements with presenting or paying financial institutions to establish presentment based on an electronic transmission rather than physical delivery of a check or share draft.
- Enter into agreements with a paying or returning financial institution to accept an image or other notice in lieu of the returned check or share draft.
The Board’s amendment, which took effect December 15, 1999, and a revised index of the Board’s Regulations are enclosed. A notice describing the Board’s action and the comments received is available on the Board’s Internet Site (www.federalreserve.gov/boarddocs/press/boardacts/1999) or from their Public Affairs Department, (800) 446-7045.
Norman E. D’Amours
National Credit Union Administration Board