“Restrictive endorsements and technologies that can verify restrictive endorsements should be a top priority for FIs offering RDC. Financial institutions should review and revise all of their customer-facing agreements that include RDC provisions–consumer and business, mobile and cash management–to require financial institution customers to include restrictive endorsements on each RDC item the customer deposits, and to allocate liability for loss regarding RDC items to the customer in connection with subsequent deposits of the same item. Several steps should be taken to address the new RDC indemnity as that Regulation CC change creates a new form of risk that must be cabined.

Another source is the presentation.įinancial institutions should start planning for these changes now as some of the changes will require coordination with financial institutions’ third-party vendors, which can be a lengthy process. The Lexology website provides a tidy overview of what to expect. These amendments contain a number of changes that will affect financial institutions, such as modifications to check return requirements, additional warranties, and new indemnities, including a new indemnity for remote deposit capture (RDC). We learn this via the Federal Reserve Board (FRB) publishing in the Federal Register final amendments to Regulation CC (Availability of Funds and Collection of Checks). The Expedited Funds Availability Act (EFAA) and the Check Clearing for the 21st Century Act (Check 21 Act), announced in 2014, will have amendments effective July 1, 2018.

Regulation cc check 21