Regulatory Alerts2022-06-06 | 2022-11090Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through Fedwire
The Board of Governors of the Federal Reserve System issued final amendments to Regulation J to establish a new subpart governing funds transfers through the new FedNow Service. The rule incorporates Uniform Commercial Code Article 4A for all transfers while ensuring the Electronic Fund Transfer Act prevails in case of inconsistency, and mandates immediate funds availability for beneficiaries. Additionally, the amendments clarify conditions under which beneficiary banks may delay acceptance due to reasonable cause and include technical corrections to check collection regulations.
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