Regulation J
Subpart A--Collection of Checks and Other Items By Federal Reserve Banks
Sec. 210.11 Availability of proceeds of noncash items; time schedule.
(a) Availability of credit. A Reserve Bank shall give credit to the
sender for the proceeds of a noncash item when it receives payment in
actually and finally collected funds (or advice from another Reserve
Bank of such payment to it). The amount of the item is counted as
reserve for purposes of part 204 of this chapter (Regulation D) and
becomes available for use by the sender when the Reserve Bank receives
the payment or advice, except as provided in paragraph (b) of this
section.
(b) Time schedule. A Reserve Bank may give credit for the proceeds
of a noncash item subject to payment in actually and finally collected
funds in accordance with a time schedule included in its operating circulars. The time schedule shall indicate when the proceeds of the noncash item will be counted as reserve for purposes of
part 204 of this chapter (Regulation D) and become available for use by
the sender. A Reserve Bank may, however, refuse at any time to permit
the use of credit given for a noncash item for which the Reserve Bank
has not yet received payment in actually and finally collected funds.
(c) Handling of payment. If a Reserve Bank receives, in payment for
a noncash item, a bank draft or other form of payment that it elects to
handle as a noncash item, the Reserve Bank shall neither count the
proceeds as reserve for purposes of part 204 of this chapter (Regulation
D) nor make the proceeds available for use until it receives payment in
actually and finally collected funds.
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