FRB Amends Rules on Fund Availability and Check Collection

The Board of Governors of the Federal Reserve System ("FRB") amended the rules on the availability of funds and collection of checks (Regulation CC). The final rule will allow the FRB to (i) better reflect the near universal usage of electronic check collections and returns, (ii) incentivize banks to return checks expeditiously via electronic transmission, and (iii) adopt new electronic check warranties in order to create "consistent warranty chains" regardless of whether checks are in paper or electronic form. The amendments will become effective on July 1, 2018.

Additionally, the FRB requested comments on proposed amendments to Regulation CC, which would "adopt[] an evidentiary presumption" that a check had been altered rather than forged in the case of a dispute in which the original check was not available for inspection. Comments will be due 60 days after publication of the proposal in the Federal Register.