Proposed amendment to Regulation J.The Federal Reserve Board on June June: see month. 4, 2004, proposed amending Regulation J, (Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire Fedwire A wire transfer system for high-value payments operated by the Federal Reserve System. ), which governs Reserve Banks' collection of checks and other cash items, to cover the entire range of check-processing services that the Reserve Banks plan to offer once the Check Clearing for the 21st Century Act takes effect on October October: see month. 28, 2004. The Check 21 Act permits banks to use substitute checks in place of original checks in the check collection or return process. The act does not require any bank to accept checks electronically, but facilitates the use of electronic transmission between banks that agree to use that technology. In light of the act's provisions, the Reserve Banks plan to offer a wider range of electronic check-processing services. The proposed amendments would bring electronic items within the scope of Regulation J and would establish new warranties warranties, n.pl the details of a contract; considered less important than the conditions. Whereas the penalty for breach of conditions is the termination of the contract, the penalty for breach of warranties is payment of damages to the innocent party. and an indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. that would apply to electronic items for which there is no other warranty and indemnity protection. |
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