Regulation J
Subpart A--Collection of Checks and
Other Items By Federal Reserve Banks
Sec. 210.13 Unpaid items.
(a) Right of recovery. If a Reserve Bank does not receive payment in
actually and finally collected funds for an item, the Reserve Bank shall
recover by charge-back or otherwise the amount of the item from the
sender, prior collecting bank, paying bank, or returning bank from or
through which it was received, whether or not the item itself can be
sent back. In the event of recovery from such a person, no person,
including the owner or holder of the item, shall, for the purpose of
obtaining payment of the amount of the item, have any interest in any reserve balance or other funds or
property in the Reserve Bank's possession of the bank that failed to
make payment in actually and finally collected funds.
(b) Suspension or closing of bank. A Reserve Bank shall not pay or
act on a draft, authorization to charge (including a charge authorized
by Sec. 210.9(b)(5)), or other order on a reserve balance or other funds
in its possession for the purpose of settling for items under Sec. 210.9
or Sec. 210.12 after it receives notice of suspension or closing of the
bank making the settlement for that bank's own or another's account.
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