12 C.F.R. § 229.33

Depositary bank's responsibility for returned checks and notices of nonpayment

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(a) Right to assert claim. (1) A paying bank or returning bank may be liable to a depositary bank under § 229.38 for failing to return a check in an expeditious manner only if the depositary bank has arrangements in place such that the paying bank or returning bank could return a returned check to the depositary bank electronically, directly or indirectly, by commercially reasonable means.

(2) For purposes of paragraph (a)(1) of this section, the depositary bank that has asserted a claim has the burden of proof for demonstrating that the depositary bank's arrangements meet the standard of paragraph (a)(1).

(b) Acceptance of electronic returned checks and electronic notices of nonpayment. A depositary bank's agreement with the transferor bank governs the terms under which the depositary bank will accept electronic returned checks and electronic written notices of nonpayment.

(c) Acceptance of paper returned checks and paper notices of nonpayment. (1) A depositary bank shall accept paper returned checks and paper notices of nonpayment during its banking day—

(i) At a location, if any, at which presentment of paper checks for forward collection is requested by the depositary bank; and

(ii)(A) At a branch, head office, or other location consistent with the name and address of the bank in its indorsement on the check;

(B) If no address appears in the indorsement, at a branch or head office associated with the routing number of the bank in its indorsement on the check; or

(2) A depositary bank may require that paper returned checks be separated from paper forward collection checks.

(d) Acceptance of oral notices of nonpayment. A depositary bank shall accept oral notices of nonpayment during its banking day—

(1) At the telephone number indicated in the indorsement; and

(2) At any other number held out by the bank for receipt of notice of nonpayment.

(e) Payment. (1) A depositary bank shall pay the returning bank or paying bank returning the check to it for the amount of the check prior to the close of business on the depositary bank's banking day on which it received the check (“payment date”) by—

(i) Debit to an account of the depositary bank on the books of the returning bank or paying bank;

(ii) Cash;

(iii) Wire transfer; or

(iv) Any other form of payment acceptable to the returning bank or paying bank.

(2) The proceeds of the payment must be available to the returning bank or paying bank in cash or by credit to an account of the returning bank or paying bank on or as of the payment date. If the payment date is not a banking day for the returning bank or paying bank or the depositary bank is unable to make the payment on the payment date, payment shall be made by the next day that is a banking day for the returning bank or paying bank. These payments are final when made.

(f) Misrouted returned checks and written notices of nonpayment. If a bank receives a returned check or written notice of nonpayment on the basis that it is the depositary bank, and the bank determines that it is not the depositary bank with respect to the check or notice, it shall either promptly send the returned check or notice to the depositary bank directly or by means of a returning bank agreeing to handle the returned check or notice, or send the check or notice back to the bank from which it was received.

(g) Charges. A depositary bank may not impose a charge for accepting and paying checks being returned to it.

(h) Notification to customer. If the depositary bank receives a returned check, notice of nonpayment, or notice of recovery under § 229.35(b), it shall send or give notice to its customer of the facts by midnight of the banking day following the banking day on which it received the returned check, notice of nonpayment, or notice of recovery, or within a longer reasonable time.

(i) Depositary bank without accounts. The requirements of this section with respect to notices of nonpayment do not apply to checks deposited in a depositary bank that does not maintain accounts.

[82 FR 27580, June 15, 2017]

Notes of Decisions

Cited in 14 cases (1 in the last 5 years), 1993–2024 · leading case: Farm Credit Servs. of Am. v. Am. State Bank, 339 F.3d 764 (8th Cir. 2003).

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Farm Credit Servs. of Am. v. Am. State Bank, 339 F.3d 764 (8th Cir. 2003). · cites it 13× “deadline imposed by 12 C.F.R. § 229.33 (a). In addition, the district court rejected Farm Credit’s argument that compliance with Regulation CC was optional and that compliance with the U.”

Clausen Miller, P.C. v. Citibank, N.A., 738 F. Supp. 2d 850 (N.D. Ill. 2010). · cites it 3× “Defendant stated that it received the check on July 16, 2008, returned the check for purposes of § 4-302 on July 17, 2008, and returned the check, for purposes of 12 C.F.R. § 229.33 (a) (a provision not at issue in this case), to BofA on July 18, 2008.”

Wells Fargo Bank, N.A. v. Citizens Bank of Texas, N.A., 181 S.W.3d 790 (Tex. App. 2005). “” 12 C.F.R. § 229.33 (a) (2005). The notice requirement is as follows: If a paying bank determines not to pay a check in the amount of $2,500 or more, it shall provide notice of nonpayment such that the notice is received by the depositary bank by 4:00 p.”

Aresty Int'l Law Firm, P.C. v. Citibank, N.A., 677 F.3d 54 (1st Cir. 2012). “3 Aresty claimed first that Citibank had violated 12 C.F.R. § 229.33 (part of “Regulation CC,” which we will refer to using that shorthand from now on) by failing to notify Citizens in a timely man *57 ner that it would not honor the check, and second that Citibank had…”

First Nat. Bank in Harvey v. Colonial Bank, 898 F. Supp. 1220 (N.D. Ill. 1995). “12 C.F.R. § 229.33 (a). In addition, First National has presented evidence that notifying other banks of large returns by wire rather than by telephone was its usual practice.”

Oak Brook Bank v. N. Trust Co., 256 F.3d 638 (7th Cir. 2001). “12 C.F.R. § 229.33 (a). It is conceded that this provision was satisfied by Northern’s phone call to Oak Brook on the thirteenth.”

Farm Credit Servs. of Am. v. Am. State Bank, 212 F. Supp. 2d 1034 (N.D. Iowa 2002). · cites it 3× “(local time) on the second business day following the banking day on which the check was presented to the paying bank.”

Ex Parte MONY Fed. Credit Union, 668 So. 2d 552 (Ala. 1995). “SouthTrust contends that Empire failed to comply with the notice requirements as provided in 12 C.F.R. § 229.33 . 1 "SouthTrust notified Empire that it was protesting the return of the share draft because Empire failed to notify SouthTrust in a timely manner that the share draft…”

Blackwell Livestock Auction, Inc. v. Cmty. Bank of Shidler, 864 P.2d 1297 (Okla. Civ. App. 1993). “That same morning, however, Chisholm Trails State Bank of Wichita, apparently operating under Regulation CC; 12 C.F.R. § 229.33 (1993), 4 notified the Bank that a deposit previously credited to Mullins’ account for checks drawn on the Cedar Vale Sale Barn’s account at the…”

Southtrust Bank of Baldwin Cnty. v. Empire Corp. Fed. Credit Union, 668 So. 2d 548 (Ala. Civ. App. 1994). · cites it 3× “SouthTrust contends that Empire failed to comply with the notice requirements as provided in 12 C.F.R. § 229.33 . SouthTrust notified Empire that it was protesting the return of the share draft because Empire failed to notify SouthTrust in a timely manner that the share draft…”

Farm Credit Servs. v. Am. State Bank (8th Cir. 2003). · cites it 13× “deadline imposed by 12 C.F.R. § 229.33 (a). In addition, the district court rejected Farm Credit’s argument that compliance with Regulation CC was optional and that compliance with the U.”

Livingston Livestock Exch., Inc. v. Hull State Bank, 14 S.W.3d 849 (Tex. App. 2000). “” See 12 C.F.R. § 229.33 (1999); Tex. Bus. & Comm.”

Show all 14 citing cases →

— 12 C.F.R. § 229.33(a) — 3 cases

Farm Credit Servs. of Am. v. Am. State Bank, 339 F.3d 764 (8th Cir. 2003). “deadline imposed by 12 C.F.R. § 229.33 (a). In addition, the district court rejected Farm Credit’s argument that compliance with Regulation CC was optional and that compliance with the U.”

Bank of Am., N.A., F/K/A Nationsbank, N.A. v. First Nat'l Bank & Bancinsure, Inc. (Tex. App. 2007).

Farm Credit Servs. v. Am. State Bank (8th Cir. 2003). “deadline imposed by 12 C.F.R. § 229.33 (a). In addition, the district court rejected Farm Credit’s argument that compliance with Regulation CC was optional and that compliance with the U.”

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