(a) Right of recovery. If a Reserve Bank does not receive payment in actually and finally
collected funds for an item, the Reserve Bank shall recover by charge-back
or otherwise the amount of the item from the sender, prior collecting
bank, paying bank, or returning bank from or through which it was
received, whether or not the item itself can be sent back. In
the event of recovery from such a person, no person, including the
owner or holder of the item, shall, for the purpose of obtaining payment
of the amount of the item, have any interest in any reserve balance
or other funds or property in the Reserve Bank’s possession of the
bank that failed to make payment in actually and finally collected
funds.
(b) Suspension or closing
of bank. A Reserve Bank shall not pay or act on a draft, authorization
to charge (including a charge authorized by section 210.9(a)(5)),
or other order on a reserve balance or other funds in its possession
for the purpose of settling for items under section 210.9 or section
210.12 after it receives notice of suspension or closing of the bank
making the settlement for that bank’s own or another’s account.
