(a) Receipt of electronic checks. The terms under which a paying
bank will accept presentment of an electronic check is governed by
the paying bank’s agreement with the presenting bank.
(b) Receipt of paper checks.
(1) A paper check is considered
received by the paying bank when it is received—
(i) At a
location to which delivery is requested by the paying bank;
(ii) At an address of the
bank associated with the routing number on the check, whether contained
in the MICR line or in fractional form;
(iii) At a branch, head office, or other
location consistent with the name and address of the bank on the check
if the bank is identified on the check by name and address; or
(iv) At any branch
or head office, if the bank is identified on the check by name without
address.
(2) A bank may require that checks presented to it as a paying bank
be separated from returned checks.
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(c) Liability of bank during forward collection. Settlements between banks for the forward collection of a check
are final when made; however, a collecting bank handling a check for
forward collection may be liable to a prior collecting bank, including
the depositary bank, and the depositary bank’s customer.
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(d) Same-day settlement.
(1) A paper check is considered presented,
and a paying bank must settle for or return the check pursuant to
paragraph (d)(2) of this section, if a presenting bank delivers the
check in accordance with reasonable delivery requirements established
by the paying bank and demands payment under this paragraph (d)—
(i) At a location designated by the paying bank for receipt of paper
checks under this paragraph (d) at which the paying bank would be
considered to have received the paper check under paragraph (b) of
this section or, if no location is designated, at any location described
in paragraph (b) of this section; and
(ii) By 8 a.m. on a business day (local
time of the location described in paragraph (d)(1)(i) of this section).
(2) A paying
bank may require that paper checks presented for settlement pursuant
to paragraph (d)(1) of this section be separated from other forward-collection
checks or returned checks.
(3) If presentment of a paper check meets the requirements of paragraph
(d)(1) of this section, the paying bank is accountable to the presenting
bank for the amount of the check unless, by the close of Fedwire on
the business day it receives the check, it either—
(i) Settles
with the presenting bank for the amount of the check by credit to
an account at a Federal Reserve Bank designated by the presenting
bank; or
(ii) Returns
the check.
(4) Notwithstanding paragraph (d)(3) of this section, if a paying
bank closes on a business day and receives presentment of a paper
check on that day in accordance with paragraph (d)(1) of this section—
(i) The paying bank is accountable to the presenting bank for the
amount of the check unless, by the close of Fedwire on its next banking
day, it either—
(A) Settles with the presenting bank for the
amount of the check by credit to an account at a Federal Reserve Bank
designated by the presenting bank; or
(B) Returns the check.
(ii) If the closing
is voluntary, unless the paying bank settles for or returns the check
in accordance with paragraph (d)(3) of this section, it shall pay
interest compensation to the presenting bank for each day after the
business day on which the check was presented until the paying bank
settles for the check, including the day of settlement.
