§ 4008. — Regulations and reports by Board.
[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.
