9-841
Pursuant to the provisions of sections
13, 16, 19, 11, and 14 of the Federal Reserve Act; the Expedited Funds
Availability Act; the Check Clearing for the 21st Century Act; and
other statutory provisions, Regulation J has been promulgated to govern
the collection of checks and other cash items, the collection of noncash
items, and the handling of returned checks by the Federal Reserve
Banks. The regulation provides for the sending of items to the Federal
Reserve Banks, Reserve Banks’ handling returned checks that they did
not handle during the forward-collection process, and remittance and
payment for items.
The Board of Governors adopted subpart B of Regulation
J in order to define the rights and responsibilities of parties involved
in funds transfers sent through Fedwire. This subpart does not govern
other electronic payments, such as point-of-sale transactions and
payments processed through automated clearinghouses.
