(a) General. Each Reserve Bank shall receive and handle items in accordance with
this subpart, and shall issue operating circulars governing the details
of its handling of items and other matters deemed appropriate by the
Reserve Bank. The circulars may, among other things, classify cash
items and noncash items, require separate sorts and letters, provide
different closing times for the receipt of different classes or types
of items, provide for instructions by an Administrative Reserve Bank
to other Reserve Banks, set forth terms of services, and establish
procedures for adjustments on a Reserve Bank’s books, including amounts,
waiver of expenses, and payment of compensation. As deemed appropriate
by the Reserve Bank, the circulars may also require the sender to
provide warranties and indemnities that only items and any noncash
items the Reserve Banks have agreed to handle will be sent to the
Reserve Banks. The Reserve Banks may provide to a subsequent collecting
bank and to the paying bank any warranties and indemnities provided
by the sender pursuant to this paragraph (a).
(b) Binding effect. This subpart, together
with subparts C and D of part 229 and the operating circulars of the
Reserve Banks, are binding on all parties interested in an item handled
by any Reserve Bank.
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(c) Government items. As depositaries and fiscal agents of the United States, Reserve
Banks handle certain items payable by the United States or certain
federal agencies as cash or noncash items. To the extent provided
by regulations issued by, and arrangements made with, the United States
Treasury Department and other government departments and agencies,
the handling of such items is governed by this subpart. The Reserve
Banks shall include in their operating circulars such information
regarding these regulations and arrangements as the Reserve Banks
deem appropriate.
(d) Government
senders. Except as otherwise provided by statutes of the United
States, or regulations issued or arrangements made thereunder, this
subpart and the operating circulars of the Reserve Banks apply to
the following when acting as a sender: a department, agency, instrumentality,
independent establishment, or office of the United States, or a wholly
owned or controlled government corporation, that maintains or uses
an account with a Reserve Bank.
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(e) Foreign items. A Reserve Bank also may receive and handle certain
items payable outside a Federal Reserve District, as provided in its
operating circulars. The handling of such items in a state is governed
by this subpart, and the handling of such items outside a state is
governed by the local law.
(f) Relation
to other law. The provisions of this subpart supersede any inconsistent
provisions of the Uniform Commercial Code, of any other state law,
or of part 229 of this title, but only to the extent of the inconsistency.
