When Reg CC first came out I was taught that if we accepted a check as a deposit item, it became subject to Reg CC rules. To avoid potential losses on foreign items, I have always recommended rejecting them for deposit and sending them as a collection item. In looking at the definition of check, however, I can't find where that is the case. I fear that I may have lead many bankers astray on this issue.

Reg CC does not apply to foreign items. Sending them for collection is your best bet to avoid loss.

I went to the definitions in Reg CC and it states basically that a check is (1) an item payable through a bank; however when you go back to the definition of Bank it refers to US Bank.

Does that help?

That's what I saw as well and I didn't see anything in the commentary to support the statement that a foreign item would fall under Reg CC rules if accepted for deposit. I may have taken the trainer at face value when I should have done my own research.

The problem with putting Reg CC guidelines on foreign items is the fact that foreign countries do not process their checks in a timely manner. I have known a Canadian check to take a month to be returned.

Italian drawn items could come back as much as 22-weeks after they clear it, and that is on an item sent for collection. Know your customer really comes in to play on foreign draw items...