CHANROBLES VIRTUAL LAW LIBRARY

ChanRobles™ Virtual Law Library | chanrobles.com™  
Main Index ChanRobles LawTube - Social Network Chan Robles Virtual Law Library Latest Legal Updates Philippine Legal Resources Significant Philippine Legal Resources Worldwide Legal Resources Philippine Supreme Court Decisions United States Supreme Court Jurisprudence United States Laws, Statutes & Codes

US LAWS, STATUTES & CODES ON-LINE

ChanRobles On-Line Bar Review

supreme.chanrobles.com


google search for chanrobles.comSearch for www.chanrobles.com

§ 4008. —  Regulations and reports by Board. - US § 4008. —  Regulations and reports by Board. - US Code : CHAN ROBLES VIRTUAL LAW LIBRARY

[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC4008]

 
                       TITLE 12--BANKS AND BANKING
 
                CHAPTER 41--EXPEDITED FUNDS AVAILABILITY
 
Sec. 4008. Regulations and reports by Board


(a) In general

    After notice and opportunity to submit comment in accordance with 
section 553(c) of title 5, the Board shall prescribe regulations--
        (1) to carry out the provisions of this chapter;
        (2) to prevent the circumvention or evasion of such provisions; 
    and
        (3) to facilitate compliance with such provisions.

(b) Regulations relating to improvement of check processing system

    In order to improve the check processing system, the Board shall 
consider (among other proposals) requiring, by regulation, that--
        (1) depository institutions be charged based upon notification 
    that a check or similar instrument will be presented for payment;
        (2) the Federal Reserve banks and depository institutions 
    provide for check truncation;
        (3) depository institutions be provided incentives to return 
    items promptly to the depository institution of first deposit;
        (4) the Federal Reserve banks and depository institutions take 
    such actions as are necessary to automate the process of returning 
    unpaid checks,
        (5) each depository institution and Federal Reserve bank--
            (A) place its endorsement, and other notations specified in 
        regulations of the Board, on checks in the positions specified 
        in such regulations; and
            (B) take such actions as are necessary to--
                (i) automate the process of reading endorsements; and
                (ii) eliminate unnecessary endorsements;

        (6) within one business day after an originating depository 
    institution is presented a check (for more than such minimum amount 
    as the Board may prescribe)--
            (A) such originating depository institution determines 
        whether it will pay such check; and
            (B) if such originating depository institution determines 
        that it will not pay such check, such originating depository 
        institution directly notify the receiving depository institution 
        of such determination;

        (7) regardless of where a check is cleared initially, all 
    returned checks be eligible to be returned through the Federal 
    Reserve System;
        (8) Federal Reserve banks and depository institutions 
    participate in the development and implementation of an electronic 
    clearinghouse process to the extent the Board determines, pursuant 
    to the study under subsection (f) of this section, that such a 
    process is feasible; and
        (9) originating depository institutions be permitted to return 
    unpaid checks directly to, and obtain reimbursement for such checks 
    directly from, the receiving depository institution.

(c) Regulatory responsibility of Board for payment system

                (1) Responsibility for payment system

        In order to carry out the provisions of this chapter, the Board 
    of Governors of the Federal Reserve System shall have the 
    responsibility to regulate--
            (A) any aspect of the payment system, including the receipt, 
        payment, collection, or clearing of checks; and
            (B) any related function of the payment system with respect 
        to checks.

                           (2) Regulations

        The Board shall prescribe such regulations as it may determine 
    to be appropriate to carry out its responsibility under paragraph 
    (1).

(d) Reports

                 (1) Implementation progress reports

        (A) Required reports

            The Board shall transmit a report to both Houses of the 
        Congress not later than 18, 30, and 48 months after August 10, 
        1987.

        (B) Contents of report

            Each such report shall describe--
                (i) the actions taken and progress made by the Board to 
            implement the schedules established in section 4002 of this 
            title, and
                (ii) the impact of this chapter on consumers and 
            depository institutions.

             (2) Evaluation of temporary schedule report

        (A) Report required

            The Board shall transmit a report to both Houses of the 
        Congress not later than 2 years after August 10, 1987, regarding 
        the effects the temporary schedule established under section 
        4002(c) of this title have had on depository institutions and 
        the public.

        (B) Contents of report

            Such report shall also assess the potential impact the 
        implementation of the schedule established in section 4002(b) of 
        this title will have on depository institutions and the public, 
        including an estimate of the risks to and losses of depository 
        institutions and the benefits to consumers. Such report shall 
        also contain such recommendations for legislative or 
        administrative action as the Board may determine to be 
        necessary.

              (3) Comptroller General evaluation report

        Not later than 6 months after September 1, 1988, the Comptroller 
    General of the United States shall transmit a report to the Congress 
    evaluating the implementation and administration of this chapter.

(e) Consultation

    In prescribing regulations under subsections (a) and (b) of this 
section, the Board shall consult with the Comptroller of the Currency, 
the Board of Directors of the Federal Deposit Insurance Corporation, the 
Federal Home Loan Bank Board, and the National Credit Union 
Administration Board.

(f) Electronic clearinghouse study

                         (1) Study required

        The Board shall study the feasibility of modernizing and 
    accelerating the check payment system through the development of an 
    electronic clearinghouse process utilizing existing 
    telecommunications technology to avoid the necessity of actual 
    presentment of the paper instrument to a payor institution before 
    such institution is charged for the item.

               (2) Consultation; factors to be studied

        In connection with the study required under paragraph (1), the 
    Board shall--
            (A) consult with appropriate experts in telecommunications 
        technology; and
            (B) consider all practical and legal impediments to the 
        development of an electronic clearinghouse process.

                         (3) Report required

        The Board shall report its conclusions to the Congress within 9 
    months of August 10, 1987.

(Pub. L. 100-86, title VI, Sec. 609, Aug. 10, 1987, 101 Stat. 647.)

                          Codification

    In subsec. (d)(3), ``September 1, 1988'' substituted for ``section 
603(b) takes effect'' on authority of section 613(b) of Pub. L. 100-86, 
set out as an Effective Date note under section 4001 of this title.

                          Transfer of Functions

    Federal Home Loan Bank Board abolished and functions transferred, 
see sections 401 to 406 of Pub. L. 101-73, set out as a note under 
section 1437 of this title.


             Exceptions in Areas Where Major Disaster Exists

    Pub. L. 105-18, title V, Sec. 50002, June 12, 1997, 111 Stat. 211, 
provided that:
    ``(a) Truth in Lending Act.--During the 240-day period beginning on 
the date of enactment of this Act [June 12, 1997], the Board of 
Governors of the Federal Reserve System may make exceptions to the Truth 
in Lending Act [15 U.S.C. 1601 et seq.] for transactions within an area 
in which the President, pursuant to section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C. 5170], 
has determined, on or after February 28, 1997, that a major disaster 
exists, or within an area determined to be eligible for disaster relief 
under other Federal law by reason of damage related to the 1997 flooding 
of the Red River of the North, the Minnesota River, and the tributaries 
of such rivers, if the Board determines that the exception can 
reasonably be expected to alleviate hardships to the public resulting 
from such disaster that outweigh possible adverse effects.
    ``(b) Expedited Funds Availability Act.--During the 240-day period 
beginning on the date of enactment of this Act [June 12, 1997], the 
Board of Governors of the Federal Reserve System may make exceptions to 
the Expedited Funds Availability Act [12 U.S.C. 4001 et seq.] for 
depository institution offices located within any area referred to in 
subsection (a) of this section if the Board determines that the 
exception can reasonably be expected to alleviate hardships to the 
public resulting from such disaster that outweigh possible adverse 
effects.
    ``(c) Time Limit on Exceptions.--Any exception made under this 
section shall expire not later than September 1, 1998.
    ``(d) Publication Required.--The Board of Governors of the Federal 
Reserve System shall publish in the Federal Register a statement that--
        ``(1) describes any exception made under this section; and
        ``(2) explains how the exception can reasonably be expected to 
    produce benefits to the public that outweigh possible adverse 
    effects.''
    Similar provisions were contained in the following prior acts:
    Pub. L. 103-76, Sec. 2, Aug. 12, 1993, 107 Stat. 752.
    Pub. L. 102-485, Sec. 3, Oct. 23, 1992, 106 Stat. 2772.

                  Section Referred to in Other Sections

    This section is referred to in section 4009 of this title.




Back

Chan Robles Virtual Law Library

google search for chanrobles.com Search for www.chanrobles.com









cralaw

  Copyright©1998- present | chanrobles.com   Disclaimer   E-mail Restrictions
ChanRobles™ Virtual Law Library | chanrobles.com™
 
nad