(a) Payment of
sender’s obligation to a Federal Reserve Bank. A sender (other
than a Federal Reserve Bank), by maintaining or using an account with
a Federal Reserve Bank, authorizes the sender’s Federal Reserve Bank
to obtain payment for the sender’s payment orders by debiting the
amount of the payment order from the sender’s account.
9-820
(b) Overdrafts.
(1) A sender does not have the right to
an overdraft in the sender’s account. In the event an overdraft is
created, the overdraft shall be due and payable immediately, without
the need for a demand by the Federal Reserve Bank, at the earliest
of the following times:
(i) at the end of the Fedwire Funds Service funds-transfer business
day;
(ii) at the time the Federal
Reserve Bank, in its sole discretion, deems itself insecure and gives
notice thereof to the sender; or
(iii) at the time the sender suspends payments or is closed.
(2) The sender shall have in its account,
at the time the overdraft is due and payable, a balance of actually
and finally collected funds sufficient to cover the aggregate amount
of all its obligations to the Federal Reserve Bank, whether the obligations
result from the execution of a payment order or otherwise.
(3) To secure any overdraft, as well as
any other obligation due or to become due to its Federal Reserve Bank,
each sender, by sending a payment order to a Federal Reserve Bank
that is accepted by the Federal Reserve Bank, grants to the Federal
Reserve Bank a security interest in all of the sender’s assets in
the possession or control of, or held for the account of, the Federal
Reserve Bank. The security interest attaches when an overdraft, or
any other obligation to the Federal Reserve Bank, becomes due and
payable.
(4) A Federal Reserve Bank
may take any action authorized by law to recover the amount of an
overdraft that is due and payable, including, but not limited to,
the exercise of rights of set off, the realization on any available
collateral, and any other rights it may have as a creditor under applicable
law.
(5) If a sender, other than
a government sender described in section 210.25(d) of this part, incurs
an overdraft in its account as a result of a debit to the account
by a Federal Reserve Bank under paragraph (a) of this section, the
account will be subject to any applicable overdraft charges, regardless
of whether the overdraft has become due and payable. A Federal Reserve
Bank may debit a sender’s account under paragraph (a) of this section
immediately on acceptance of the payment order.
9-821
(c) Review of payment orders. A sender, by
sending a payment order to a Federal Reserve Bank, agrees that for
the purposes of sections 4A-204(a) and 4A-304 of article 4A, a reasonable
time to notify a Federal Reserve Bank of the relevant facts concerning
an unauthorized or erroneously executed payment order is within 30
calendar days after the sender receives notice that the payment order
was accepted or executed, or that the sender’s account was debited
with respect to the payment order.
