Issued by FDIC
Sec. 229.30 - Electronic checks and electronic information.
(a) Checks under this subpart. Electronic checks and electronic returned checks are subject to this subpart as if they were checks or returned checks, except where “paper check” or “paper returned check” is specified. For the purposes of this subpart, the term “check” or “returned check” as used in Subpart A includes “electronic check” or “electronic returned check,” except where “paper check” or “paper returned check” is specified.
XVI. Section 229.30 Electronic Checks and Electronic Information
A. 229.30(a) Checks Under This Subpart
1. A bank may agree to receive an electronic check or electronic returned check from another bank instead of a paper check or returned check. (See §229.2(bbb) and commentary thereto). Section 229.30(a) does not give a bank the right to send an electronic check or electronic returned check absent an agreement to do so with the receiving bank.
2. Electronic checks and electronic returned checks are subject to subpart C of this part as if they were checks or returned checks, unless otherwise provided in subpart C. For example, §229.31(c), which requires a paying bank to provide a notice of nonpayment if the paying bank determines not to pay a check in the amount of $5,000 or more, also applies when a paying bank determines not to pay an electronic check in the amount of $5,000 or more. A depositary bank's obligation to pay for a returned check (§229.33(e)) also applies with respect to an electronic returned check.
Additionally, §§229.33(b) and 229.36(a) specify that the parties' agreements govern the receipt of electronic returned checks and electronic written notices of nonpayment, and electronic checks, respectively. Section 229.34(a) sets forth warranties that are given only with respect to electronic checks and electronic returned checks and section 229.34(f) sets forth an indemnity given only with respect to remote deposit capture. Warranties that apply to paper checks or paper returned checks also apply to electronic checks and electronic returned checks, including §229.34(b) (transfer and presentment warranties with respect to remotely created checks), §229.34(c) (settlement amount, encoding, and offset warranties), §229.34(d) (returned check warranties), and §229.34(e) (notice of nonpayment warranties). The parties may, by agreement, vary the effect of the provisions in subpart C of this part as they apply to electronic checks and electronic returned checks, except that as set forth in §229.37, no agreement can disclaim the responsibility of a bank for its own lack of good faith or failure to exercise ordinary care. (See §229.37 and commentary thereto).
3. Certain provisions of subpart C relate solely to paper checks or paper returned checks, as specified, such as §229.33(c) (acceptance of paper returned checks) and §229.36(d) (same-day settlement).
(b) Writings. If a bank is required to provide information in writing under this subpart, the bank may satisfy that requirement by providing the information electronically if the receiving bank agrees to receive that information electronically.
B. 229.30(b) Writings
1. Provisions in subpart C of this part require that a paying bank or returning bank send information in writing. For example, §229.31(f) requires that a notice in lieu be either a copy of the check or a written notice of nonpayment. A bank may send information required to be in writing in electronic form if the bank sending the information has an agreement with the bank receiving the information to do so.