FINAL RULE--AMENDMENT TO REGULATION CC.The Board of Governors is amending 12 C.F.R. Part 229, its Regulation CC (Availability of Funds and Collection of Checks). The Board is adopting amendments to Subpart C of Regulation CC, which contains rules governing the collection and return of checks. The amendments to the regulation and Commentary are intended to provide further clarification as to the extent to which depository institutions Depository institution A financial institution that obtains its funds mainly through deposits from the public. This includes commercial banks, savings and loan associations, savings banks and credit unions. and others may vary the terms of the regulation by agreement for the purpose of instituting electronic return systems. Effective December 15, 1999, 12 C.F.R. Part 229 is amended as follows: Part 229--Availability of Funds and Collection of Checks (Regulation CC) 1. The authority citation Citation (foaled 1945) U.S. Thoroughbred racehorse. In four seasons he won 32 of 45 races, finished second in ten, and third in two. He won the 1948 Triple Crown, and became the first horse to win $1 million. He set a world record in 1950 by running a mile in 1:33 3/5. for Part 229 continues to read as follows: Authority: 12 U.S.C. 4001 et seq et seq. (et seek) n. abbreviation for the Latin phrase et sequentes meaning "and the following." It is commonly used by lawyers to include numbered lists, pages or sections after the first number is stated, as in "the rules of the road are found in Vehicle Code . 2. In section 229.36, paragraph (c) is removed and reserved. 3. In Appendix E, under section XXII, paragraph C. is removed and reserved. 4. In Appendix E, under section XXIII, new paragraphs C.9. and C.10. are added to read as follows: Appendix E to Part 229--Commentary XXIII. Section 229.37 Variations by Agreement C. * * * 9. A presenting bank and a paying bank may agree that presentment presentment: see indictment. takes place when the paying bank receives an electronic transmission of information describing the check rather than upon delivery of the physical check. (See 12 C.F.R. 229.36(b).) 10. A depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. bank may agree with a paying or returning bank to accept an image or other notice in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. a returned check even when the check is available for return under this part. Except to the extent that other parties interested in the check assent An intentional approval of known facts that are offered by another for acceptance; agreement; consent. Express assent is manifest confirmation of a position for approval. to or are bound by the variation of the notice-in-lieu provisions of this part, banks entering into such an agreement may be responsible under this part or other applicable law to other interested parties for any losses caused by the handling of a returned check under the agreement. (See 12 C.F.R. 229.30(f), 229.31(f), 229.38(a).) |
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