Depositary bank's responsibility for returned checks and notices of nonpayment.

CFR · 2024-01-01 · US · Title 12

(a) (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) (c) (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) (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. (e) (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

official document · source cfr-2024 · id 12:§ 229.33