Paying bank's responsibility for return of checks and notices of nonpayment.

CFR · 2024-01-01 · US · Title 12

(a) (2) A paying bank that is unable to identify the depositary bank with respect to a check may send the returned check to any bank that handled the check for forward collection and must advise the bank to which the check is sent that the paying bank is unable to identify the depositary bank. (3) A paying bank may convert a check to a qualified returned check. A (4) Except as provided in paragraph (g) of this section, this section does not affect a paying bank's responsibility to return a check within the deadlines required by the UCC or Regulation J (12 CFR part 210). (b) (2) If the second business day following the banking day on which the check was presented to the paying bank is not a banking day for the depositary bank, the paying bank satisfies the expeditious return requirement if it sends the returned check in a manner such that the depositary bank would normally receive the returned check not later than 2 p.m. (local time of the depositary bank) on the depositary bank's next banking day. (c) (2)(i) To the extent available to the paying bank, notice must include the information contained in the check's MICR line when the check is received by the paying bank, as well as— (A) Name of the payee(s); (B) Amount; (C) Date of the indorsement of the depositary bank; (D) The bank name, routing number, and trace or sequence number associated with the indorsement of the depositary bank; and (E) Reason for nonpayment. (ii) If the paying bank is not sure of the accuracy of an ite

official document · source cfr-2024 · id 12:§ 229.31