(a) Right to assert claim.
(1) A paying bank or returning bank may
be liable to a depositary bank under section 229.38 for failing to
return a check in an expeditious manner only if the depositary bank
has arrangements in place such that the paying bank or returning bank
could return a returned check to the depositary bank electronically,
directly or indirectly, by commercially reasonable means.
(2) For purposes of paragraph
(a)(1) of this section, the depositary bank that has asserted a claim
has the burden of proof for demonstrating that the depositary bank’s
arrangements meet the standard of paragraph (a)(1).
(b) Acceptance of electronic
returned checks and electronic notices of nonpayment. A depositary
bank’s agreement with the transferor bank governs the terms under
which the depositary bank will accept electronic returned checks and
electronic written notices of nonpayment.
(c) Acceptance of paper returned checks and paper
notices of nonpayment.
(1) A depositary bank shall accept paper
returned checks and paper notices of nonpayment during its banking
day—
(i) At a location, if any, at which
presentment of paper checks for forward collection is requested by
the depositary bank; and
(ii) (A) At a branch, head office, or
other location consistent with the name and address of the bank in
its indorsement on the check;
(B) If no address appears in
the indorsement, at a branch or head office associated with the routing
number of the bank in its indorsement on the check; or
(C) If no routing number or address
appears in its indorsement on the check, at any branch or head office
of the bank.
(2) A depositary bank may require that
paper returned checks be separated from paper forward collection checks.
(d) Acceptance
of oral notices of nonpayment. A depositary bank shall accept
oral notices of nonpayment during its banking day—
(1) At the telephone number indicated in
the indorsement; and
(2) At any other number held out by the bank for receipt of notice
of nonpayment.
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(e) Payment.
(1) A depositary bank shall pay the returning
bank or paying bank returning the check to it for the amount of the
check prior to the close of business on the depositary bank’s banking
day on which it received the check (“payment date”) by—
(i) Debit
to an account of the depositary bank on the books of the returning
bank or paying bank;
(ii) Cash;
(iii)
Wire transfer; or
(iv) Any other form of payment acceptable to the returning bank or
paying bank.
(2) The proceeds of the payment must be available to the returning
bank or paying bank in cash or by credit to an account of the returning
bank or paying bank on or as of the payment date. If the payment date
is not a banking day for the returning bank or paying bank or the
depositary bank is unable to make the payment on the payment date,
payment shall be made by the next day that is a banking day for the
returning bank or paying bank. These payments are final when made.
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(f) Misrouted returned checks
and written notices of nonpayment. If a bank receives a returned
check or written notice of nonpayment on the basis that it is the
depositary bank, and the bank determines that it is not the depositary
bank with respect to the check or notice, it shall either promptly
send the returned check or notice to the depositary bank directly or by means
of a returning bank agreeing to handle the returned check or notice,
or send the check or notice back to the bank from which it was received.
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(g) Charges. A depositary
bank may not impose a charge for accepting and paying checks being
returned to it.
(h) Notification to customer. If the depositary bank receives a
returned check, notice of nonpayment, or notice of recovery under
section 229.35(b), it shall send or give notice to its customer of
the facts by midnight of the banking day following the banking day
on which it received the returned check, notice of nonpayment, or
notice of recovery, or within a longer reasonable time.
(i) Depositary bank without
accounts. The requirements of this section with respect to notices
of nonpayment do not apply to checks deposited in a depositary bank
that does not maintain accounts.
