• The Federal Reserve Board (Fed) recently issued proposed changes to Regulation CC (Reg CC), which applies to the availability of funds and collection of checks. These proposed changes are intended to address comments received on the Fed’s 2011 Reg CC proposal (2011 proposal), which has not been finalized.
• Specifically, the Fed is proposing two alternative approaches to modify the current expeditious-return and notice of nonpayment requirements to encourage institutions that currently request paper returns to transition to electronic returns. Also, the proposal would retain, without change, the current same-day settlement rule for paper checks, and would make other changes related to electronic checks and returns, electronically-created items that are not derived from paper checks (i.e., electronic payment orders (EPOs)), remote deposit capture (RDC), and other related items.
• CUNA is interested in how these proposed changes would affect credit union operations, check and payment processing, and payment providers.
• Comments for the proposed rules are due to the Fed by May 2, 2014; please submit your comments to CUNA by March 24, 2014.
• If you have any questions or comments, please contact CUNA Assistant General Counsel for Regulatory Research Dennis Tsang at firstname.lastname@example.org.
• For further details, please see the Fed’s 2013 proposed Reg CC changes.