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CFR › Title 12 › Chapter II › Subchapter A › Part 210 › Subpart B › Section 210.28

12 CFR 210.28 - Agreement of sender.

There is 1 rule appearing in the Federal Register for 12 CFR 210. Select the tab below to view, or View eCFR (GPOAccess)
§ 210.28
Agreement of sender.
(a) Payment of sender's obligation to a Federal Reserve Bank. A sender (other than a Federal Reserve Bank), by maintaining or using an account with a Federal Reserve Bank, authorizes the sender's Federal Reserve Bank to obtain payment for the sender's payment orders by debiting the amount of the payment order from the sender's account.
(b) Overdrafts. (1) A sender does not have the right to an overdraft in the sender's account. In the event an overdraft is created, the overdraft shall be due and payable immediately without the need for a demand by the Federal Reserve Bank, at the earliest of the following times:
(i) At the end of the funds-transfer business day;
(ii) At the time the Federal Reserve Bank, in its sole discretion, deems itself insecure and gives notice thereof to the sender; or
(iii) At the time the sender suspends payments or is closed.
(2) The sender shall have in its account, at the time the overdraft is due and payable, a balance of actually and finally collected funds sufficient to cover the aggregate amount of all its obligations to the Federal Reserve Bank, whether the obligations result from the execution of a payment order or otherwise.
(3) To secure any overdraft, as well as any other obligation due or to become due to its Federal Reserve Bank, each sender, by sending a payment order to a Federal Reserve Bank that is accepted by the Federal Reserve Bank, grants to the Federal Reserve Bank a security interest in all of the sender's assets in the possession of, or held for the account of, the Federal Reserve Bank. The security interest attaches when an overdraft, or any other obligation to the Federal Reserve Bank, becomes due and payable.
(4) A Federal Reserve Bank may take any action authorized by law to recover the amount of an overdraft that is due and payable, including, but not limited to, the exercise of rights of set off, the realization on any available collateral, and any other rights it may have as a creditor under applicable law.
(5) If a sender, other than a government sender described in § 210.25(d), incurs an overdraft in its account as a result of a debit to the account by a Federal Reserve Bank under paragraph (a) of this section, the account will be subject to any applicable overdraft charges, regardless of whether the overdraft has become due and payable. A Federal Reserve Bank may debit a sender's account under paragraph (a) of this section immediately on acceptance of the payment order.
(c) Review of payment orders. A sender, by sending a payment order to a Federal Reserve Bank, agrees that for the purposes of sections 4A-204(a) and 4A-304 of Article 4A, a reasonable time to notify a Federal Reserve Bank of the relevant facts concerning an unauthorized or erroneously executed payment order is within 30 calendar days after the sender receives notice that the payment order was accepted or executed, or that the sender's account was debited with respect to the payment order.
[55 FR 40801, Oct. 5, 1990, as amended at 57 FR 46956, Oct. 14, 1992]

Title 12 published on 2012-01-01

The following are only the Rules published in the Federal Register after the published date of Title 12.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2012-04-12; vol. 77 # 71 - Thursday, April 12, 2012
    1. 77 FR 21854 - Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through Fedwire: Elimination of “As-of Adjustments” and Other Clarifications
      GPO FDSys XML | Text
      FEDERAL RESERVE SYSTEM, 12 CFR Part 210
      Final rule.
      This final rule is effective July 12, 2012.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

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United States Code
USC : Title 12 - BANKS AND BANKING

§ 248 - Enumerated powers

§ 342 - Deposits; exchange and collection; member and nonmember banks or other depository institutions; charges

§ 360 - Receiving checks and drafts on deposit at par; charges for collections, exchange, and clearances

§ 464 - Checking against and withdrawal of reserve balance

§ 4001 - Definitions

§ 4002 - Expedited funds availability schedules

§ 4003 - Safeguard exceptions

§ 4004 - Disclosure of funds availability policies

§ 4005 - Payment of interest

§ 4006 - Miscellaneous provisions

§ 4007 - Effect on State law

§ 4008 - Regulations and reports by Board

§ 4009 - Administrative enforcement

§ 4010 - Civil liability

§ 5001 - Findings; purposes

§ 5002 - Definitions

§ 5003 - General provisions governing substitute checks

§ 5004 - Substitute check warranties

§ 5005 - Indemnity

§ 5006 - Expedited recredit for consumers

§ 5007 - Expedited recredit procedures for banks

§ 5008 - Delays in an emergency

§ 5009 - Measure of damages

§ 5010 - Statute of limitations and notice of claim

§ 5011 - Consumer awareness

§ 5012 - Effect on other law

§ 5013 - Variation by agreement

§ 5014 - Regulations

§ 5015 - Study and report on funds availability

§ 5016 - Statistical reporting of costs and revenues for transporting checks between reserve banks

§ 5017 - Evaluation and report by the Comptroller General

§ 5018 - Depositary services efficiency and cost reduction

Title 12 published on 2012-01-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR 210 after this date.

  • 2012-04-12; vol. 77 # 71 - Thursday, April 12, 2012
    1. 77 FR 21854 - Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through Fedwire: Elimination of “As-of Adjustments” and Other Clarifications
      GPO FDSys XML | Text
      FEDERAL RESERVE SYSTEM, 12 CFR Part 210
      Final rule.
      This final rule is effective July 12, 2012.