Good Morning Once Again,

Myself as well as other co-workers in my area are in desperate need of some clarification on the Midnight Deadline. For example: If the cash letter date on an item is today, 3/1/13, and the other institution has 2 business days to return the item, would it be considered late if we receive the return in our return file on 3/4/13? Or would it need to be in our return file on 3/3/13? I'm under the impression that the cash letter date doesn't count as the first business day. Or maybe I'm interpretting this all wrong.

Any information anyone could provide would be greatly appreciated.

Midnight deadline is not based on when you receive a return, it's based on when the drawee bank submits the return. (Depending on how many coorspondant banks there are between the drawee bank and you rhe return time will vary.)

Since 3/1/13 was a Friday, the drawee bank would have until midnight the next business day to submit the return which would be midnight Monday 3/4/13. When you receive it would be based on the return path it takes.

Said differently, it's about when the journey (back to the bank of first deposit) begins, not when it ends.

The IRD will show you when the item was returned by the payee.


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My opinions are my own. I don't speak for my bank.