(a) Authority and purpose. This part is issued by the Board of Governors of the Federal Reserve System (Board) to implement the Expedited Funds Availability Act (12 U.S.C. 4001-4010 ) (the EFA Act) and the Check Clearing for the 21st Century Act (12 U.S.C. 5001-5018) (the Check 21 Act).
(b) Organization. This part is divided into
subparts and appendices as follows--
(1) Subpart A contains general information.
It sets forth--
(i) The authority, purpose, and organization;
(ii) Definition of terms; and
(iii) Authority for administrative enforcement
of this part's provisions.
(2) Subpart B of this part contains rules
regarding the duty of banks to make funds deposited into accounts available
for withdrawal, including availability schedules. Subpart B of this part
also contains rules regarding exceptions to the schedules, disclosure of
funds availability policies, payment of interest, liability of banks for
failure to comply with Subpart B of this part, and other matters.
(3) Subpart C of this part contains rules
to expedite the collection and return of checks by banks. These rules cover
the direct return of checks, the manner in which the paying bank and returning
banks must return checks to the depositary bank, notification of nonpayment
by the paying bank, indorsement and presentment of checks, same-day settlement
for certain checks, the liability of banks for failure to comply with subpart
C of this part, and other matters.
(4) Subpart D of this part contains rules relating to substitute checks. These rules address the creation and legal status of substitute checks; the substitute check warranties and indemnity; expedited recredit procedures for resolving improper charges and warranty claims associated with substitute checks provided to consumers; and the disclosure and notices that banks must provide.
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