Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Proposed Rules 46631 

(a) Comments Due Date 

The FAA must receive comments on this 

airworthiness directive (AD) by October 4, 

2021. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to Dassault Aviation 

airplanes identified in paragraphs (c)(1) 

through (3) of this AD, certificated in any 

category, as identified in European Union 

Aviation Safety Agency (EASA) AD 2021– 

0047, dated February 16, 2021 (EASA AD 

2021–0047). 

(1) Model FALCON 7X airplanes. 

(2) Model FALCON 900EX airplanes. 

(3) Model FALCON 2000EX airplanes. 

(d) Subject 

Air Transport Association (ATA) of 

America Code 51, Standard Practices/ 

Structures. 

(e) Reason 

This AD was prompted by a report of an 

improper heat treatment process applied 

during the manufacturing of certain 

Decomatic titanium screws. The FAA is 

issuing this AD to address failure of an 

affected screw installed in a critical location, 

possibly resulting in reduced structural 

integrity of the airplane. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Requirements 

Except as specified in paragraph (h) of this 

AD: Comply with all required actions and 

compliance times specified in, and in 

accordance with, EASA AD 2021–0047. 

(h) Exceptions to EASA AD 2021–0047 

(1) Where EASA AD 2021–0047 refers to its 

effective date, this AD requires using the 

effective date of this AD. 

(2) The ‘‘Remarks’’ section of EASA AD 

2021–0047 does not apply to this AD. 

(3) Where EASA AD 2021–0047 specifies 

to ‘‘replace each serviceable part,’’ for this 

AD that replacement includes an inspection 

of the bore dimension and corrective actions 

(oversizing or repair), as specified in the 

service information referenced in EASA AD 

2021–0047. 

(i) No Reporting Requirement 

Although the service information 

referenced in EASA AD 2021–0047 specifies 

to submit certain information to the 

manufacturer, this AD does not include that 

requirement. 

(j) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, Large Aircraft 

Section, International Validation Branch, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. In accordance with 

14 CFR 39.19, send your request to your 

principal inspector or responsible Flight 

Standards Office, as appropriate. If sending 

information directly to the Large Aircraft 

Section, International Validation Branch, 

send it to the attention of the person 

identified in paragraph (k)(2) of this AD. 

Information may be emailed to: 9-AVS-AIR730-AMOC@faa.gov. Before using any 

approved AMOC, notify your appropriate 

principal inspector, or lacking a principal 

inspector, the manager of the responsible 

Flight Standards Office. 

(2) Contacting the Manufacturer: For any 

requirement in this AD to obtain instructions 

from a manufacturer, the instructions must 

be accomplished using a method approved 

by the Manager, Large Aircraft Section, 

International Validation Branch, FAA; or 

EASA; or Dassault Aviation’s EASA Design 

Organization Approval (DOA). If approved by 

the DOA, the approval must include the 

DOA-authorized signature. 

(k) Related Information 

(1) For information about EASA AD 2021– 

0047 contact EASA, Konrad-Adenauer-Ufer 

3, 50668 Cologne, Germany; telephone +49 

221 8999 000; email ADs@easa.europa.eu; 

Internet www.easa.europa.eu. You may find 

this EASA AD on the EASA website at 

https://ad.easa.europa.eu. You may view this 

material at the FAA, Airworthiness Products 

Section, Operational Safety Branch, 2200 

South 216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. This 

material may be found in the AD docket on 

the internet at https://www.regulations.gov 

by searching for and locating Docket No. 

FAA–2021–0684. 

(2) For more information about this AD, 

contact Tom Rodriguez, Aerospace Engineer, 

Large Aircraft Section, International 

Validation Branch, FAA, 2200 South 216th 

St., Des Moines, WA 98198; telephone and 

fax 206–231–3226; email tom.rodriguez@

faa.gov. 

Issued on August 12, 2021. 

Lance T. Gant, 

Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2021–17677 Filed 8–18–21; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Part 210 

RIN 1530–AA26 

Federal Government Participation in 

the Automated Clearing House 

AGENCY: Fiscal Service, Bureau of the 

Fiscal Service, Treasury. 

ACTION: Notice of proposed rulemaking 

with request for comment. 

SUMMARY: The Department of the 

Treasury, Bureau of the Fiscal Service 

(Fiscal Service) is proposing to amend 

its regulation governing the use of the 

Automated Clearing House (ACH) 

Network by Federal agencies. Our 

regulation adopts, with some 

exceptions, the Operating Rules 

Operating Guidelines (Operating Rules 

& Guidelines) developed by Nacha as 

the rules governing the use of the ACH 

Network by Federal agencies. We are 

issuing this proposed rule to address 

changes that Nacha has made since the 

publication of the 2019 Operating Rules 

& Guidelines. These changes include 

amendments set forth in the 2020 and 

2021 Operating Rules & Guidelines, 

including supplements thereto, issued 

on or before March 31, 2021. 

DATES: Comments on the proposed rule 

must be received by October 18, 2021. 

ADDRESSES: Comments on this rule, 

identified by docket FISCAL–2021– 

0002, should only be submitted using 

the following methods: 

• Federal eRulemaking Portal: 

www.regulations.gov. Follow the 

instructions on the website for 

submitting comments. 

• Mail: Ian Macoy, Bureau of the 

Fiscal Service, 3201 Pennsy Drive, 

Building E, Landover, MD 20785. 

The fax and email methods of 

submitting comments on rules to Fiscal 

Service have been decommissioned. 

Instructions: All submissions received 

must include the agency name (Bureau 

of the Fiscal Service) and docket 

number FISCAL–2021–0002 for this 

rulemaking. In general, comments 

received will be published on 

Regulations.gov without change, 

including any business or personal 

information provided. Comments 

received, including attachments and 

other supporting materials, are part of 

the public record and subject to public 

disclosure. Do not disclose any 

information in your comment or 

supporting materials that you consider 

confidential or inappropriate for public 

disclosure. You can download this 

proposed rule at the following website: 

https://www.fiscal.treasury.gov/ach/. 

In accordance with the U.S. 

government’s eRulemaking Initiative, 

Fiscal Service publishes rulemaking 

information on www.regulations.gov. 

Regulations.gov offers the public the 

ability to comment on, search, and view 

publicly available rulemaking materials, 

including comments received on rules. 

FOR FURTHER INFORMATION CONTACT: Ian 

Macoy, Director of Settlement Services, 

at (202) 874–6835 or ian.macoy@

fiscal.treasury.gov; or Frank J. Supik, 

Senior Counsel, at frank.supik@

fiscal.treasury.gov. 

SUPPLEMENTARY INFORMATION: 


lotter on DSK11XQN23PROD with PROPOSALS1
46632 Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Proposed Rules 

1The 2021 Operating Rules & Guidelines also 

incorporates changes that Nacha previously 

adopted and incorporated into the 2020 Operating 

Rules & Guidelines. This Notice of Proposed 

Rulemaking also highlights applicable changes to 

the Operating Rules & Guidelines that were 

incorporated into the 2020 Operating Rules & 

Guidelines. 

2The 2021 Operating Rules & Guidelines 

implements a second phase of this rule. This 

second phase is discussed below. 

I. Background 

Title 31 CFR part 210 (Part 210) 

governs the use of the ACH Network by 

Federal agencies. The ACH Network is 

a nationwide electronic fund transfer 

system that provides for the inter-bank 

clearing of electronic credit and debit 

transactions and for the exchange of 

payment-related information among 

participating financial institutions. 

The ACH Network facilitates payment 

transactions between several 

participants. These participants include 

the: 

• Originator: A company or 

individual that agrees to initiate an ACH 

entry according to an arrangement with 

a Receiver. 

• Originating Depository Financial 

Institution (ODFI): An institution that 

receives the payment instruction from 

the Originator and forwards the ACH 

entry to the ACH Operator. 

• ACH Operator: A central clearing 

facility that receives entries from ODFIs, 

distributes the entries to appropriate 

Receiving Depository Financial 

Institutions, and performs settlement 

functions for the financial institutions. 

• Receiving Depository Financial 

Institution (RDFI): An institution that 

receives entries from the ACH Operator 

and posts them to the account of its 

depositors (Receivers). 

• Receiver: An organization or 

consumer that has authorized an 

Originator to initiate an ACH entry to 

the Receiver’s account with the RDFI. 

• Third-Party Service Provider: An 

entity other than the Originator, ODFI, 

or RDFI that performs any functions on 

behalf of the Originator, ODFI, or RDFI 

in connection with processing ACH 

entries. These functions may include, 

for example, creating ACH files on 

behalf of an Originator or ODFI, or 

acting as a sending point or receiving 

point on behalf of an ODFI or RDFI. 

Rights and obligations among 

participants in the ACH Network are 

governed by Nacha’s Operating Rules & 

Guidelines. The Operating Rules & 

Guidelines establish standards for 

sending and receiving ACH entries, 

provide specifications for the electronic 

transmission of transaction information, 

set forth the rights and obligations of the 

entities listed above when transmitting, 

receiving or returning ACH entries, and 

cover other related matters. The 

Operating Rules & Guidelines also 

provide guidance regarding best 

practices to ACH Network participants. 

There is an industry consensus that the 

Operating Rules & Guidelines provide a 

uniform set of standards for ACH 

transactions and that these standards 

enable efficient transaction processing. 

Part 210 incorporates the Operating 

Rules & Guidelines by reference, with 

certain exceptions. From time to time, 

the Fiscal Service amends Part 210 to 

address changes that Nacha periodically 

makes to the Operating Rules & 

Guidelines or to revise the regulation as 

otherwise appropriate. Given their 

coverage across the payment system and 

to ensure consistent application to all 

ACH Network participants, the Federal 

Government generally adopts changes to 

the Operating Rules & Guidelines unless 

the changes address enforcement and 

compliance of the Operating Rules & 

Guidelines, would adversely impact 

government operations, or are irrelevant 

to Federal agency participation in the 

ACH Network. 

Currently, Part 210 incorporates the 

2019 Operating Rules & Guidelines, 

subject to certain exceptions. Nacha has 

adopted several changes since the 

publication of the 2019 Operating Rules 

& Guidelines, as reflected in the 2021 

Operating Rules & Guidelines and 

supplements thereto.1 We are proposing 

to incorporate in Part 210 most, but not 

all, of these changes. 

We are requesting public comment on 

all the proposed amendments to Part 

210. 

II. Summary of Proposed Rule Changes 

Since the publication of the 2019 

Operating Rules & Guidelines, Nacha 

published two versions of the Operating 

Rules & Guidelines, the 2020 Operating 

Rules & Guidelines and the 2021 

Operating Rules & Guidelines. Below, 

we outline the major changes that were 

published in these updates. 

A. 2020 Operating Rules & Guidelines 

Changes 

The 2020 Operating Rules & 

Guidelines proposed several changes to 

the Operating Rules and Guidelines. 

These changes included raising the 

Same Day ACH dollar limit, 

differentiating the codes associated with 

certain return transactions, modifying 

data security requirements, clarifying 

fraud detection standards for WEB Debit 

transactions, and adding a new Same 

Day ACH processing window. 

Same Day ACH Dollar Limit Increase 

On March 31, 2021, Nacha approved 

a rule change to update the Same Day 

ACH per-transaction dollar limit from 

$100,000 to $1,000,000. At 

implementation, both Same Day ACH 

credits and Same Day ACH debits will 

be eligible for Same Day ACH 

processing up to $1,000,000 per 

transaction. Nacha’s rule will become 

effective on March 18, 2022 for all nonFederal Government ACH Network 

participants. 

We propose to adopt this rule, 

effective March 18, 2022. Acceptance of 

this rule will enable individuals and 

entities to make Same-Day ACH 

payments of up to $1,000,000 to the 

government and will enable Federal 

payments in the same amount. Failure 

to adopt this rule at the same time as 

other ACH Network participants may 

prevent clearance and processing of 

certain high-value transactions. For 

example, a taxpayer would be unable to 

make a tax payment exceeding $100,000 

to the Federal Government via SameDay ACH, even though it could initiate 

a similarly-sized Same-Day ACH 

payment to a private party. The failed 

transaction and resulting confusion 

could negatively impact both the 

taxpayer and the Federal Government. 

Differentiating Unauthorized Return 

Codes 

The 2020 Operating Rules & 

Guidelines changed the usage of certain 

Nacha ‘‘Return Reason Codes,’’ which 

afforded financial institutions more 

insight into the reason why a 

transaction was returned. 

Under the prior rules, Nacha used one 

Return Reason Code (the R10 code) as 

a catch-all to identify transactions that 

were returned for several underlying 

return reasons, including some for 

which a valid authorization existed. 

Under the revised Rule, Nacha repurposed another Return Reason Code 

(the R11 code) to allow ACH network 

participants to more readily identify 

ACH transactions that are being 

returned due to an error, even though an 

authorization exists for the transaction 

(e.g., if the authorization is for a 

different amount and/or date). The 

newly re-purposed code is used only to 

identify the return of a debit transaction 

in which there is an error, but for which 

there is an authorization.2

The Operating Rules & Guidelines 

will treat returned transactions using 

either code (R10 and R11) as 

unauthorized. However, an Originator 

will be permitted to correct the 

underlying error in an R11 return (if 

possible). Subject to certain other 

requirements, the Originator may be 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Proposed Rules 46633 

3Some transaction errors, such as errors due to 

the failure to provide certain notices or the failure 

to use an acceptable ‘‘source document,’’ cannot be 

corrected. In those cases, the Originator will be 

required to submit a new ACH entry. 

4See 85 FR 15,715 (Mar. 19, 2020). 

5 Id. 6See 85 FR 15,715 (Mar. 19, 2020). 

able to resubmit the underlying ACH 

transaction without obtaining a new 

authorization.3

We propose to adopt this change. 

Doing so will allow the Fiscal Service to 

remain consistent with industry 

practice, allowing for consistent 

operation across the ACH network. 

Moreover, using the R11 return code 

will provide greater insight into the 

reasons for the return of certain 

transactions. 

Supplemental Fraud Detection 

Standards for WEB Debits 

The Fiscal Service previously adopted 

Nacha’s updated fraud detection 

standards for WEB debit transactions.4

Fiscal Service adopted this change with 

a delayed effective date of March 22, 

2022.5 The updated rule clarifies that 

Nacha requirements for a ‘‘commercially 

reasonable fraudulent transaction 

detection system’’ include the use of 

account validation services for WEB 

debit transactions. We propose to adopt 

the updated rule, which is noncontroversial. 

B. 2021 Operating Rules & Guidelines 

Changes 

The 2021 Operating Rules & 

Guidelines implement several 

additional changes beyond those in the 

2020 Operating Rules & Guidelines. 

These changes include, but are not 

limited to, clarifying certain portions of 

the enforcement provisions of the 

Operating Rules & Guidelines, 

implementing a new Same Day ACH 

processing window, implementing a 

second phase of Nacha’s return code 

rule, establishing a time limit on certain 

warranty claims, and implementing 

Nacha’s contact registry. 

Enforcement 

The 2021 Operating Rules & 

Guidelines defines an egregious 

violation within the context of rules 

enforcement. 

We are proposing to not adopt this 

amendment. Under 31 CFR 210.2(d), the 

enforcement provisions of the Operating 

Rules & Guidelines are inapplicable to 

Federal agencies. 

Differentiating Unauthorized Return 

Reasons 

As discussed above, Nacha 

repurposed the R11 Return Reason code 

to further differentiate between certain 

returned debit ACH transactions. The 

2021 Operating Rules & Guidelines 

implements a second phase of this rule 

change, which will apply Nacha’s 

existing Unauthorized Entry Fee to ACH 

debit entries that are returned with the 

newly repurposed code. As noted above, 

these transactions are associated with an 

authorization of a debit transaction 

when there is an error or defect in the 

payment such that the entry does not 

conform to the terms of the 

authorization. 

The Fiscal Service proposes to adopt 

this rule change. Adoption of this 

change maintains consistency with 

other ACH Network participants and 

creates additional incentives them to 

minimize the amount of unauthorized 

(or incorrectly authorized) ACH 

transactions. 

Limitation on Warranty Claims 

Nacha’s 2021 Operating Rules & 

Guidelines impose time limits on an 

RDFI’s ability to make a claim against an 

ODFI’s authorization warranty. 

The Operating Rules & Guidelines 

require an ODFI to warrant that an ACH 

entry has been properly authorized by 

the Receiver. Under the prior rules, 

there was no time limit on the ODFI’s 

warranties. Instead, these limits were 

determined by state statutes of 

limitations, which may vary. 

The change sets forth different time 

periods, depending upon whether the 

transaction affects consumer and nonconsumer accounts. This rule allows an 

RDFI to make a claim for one year from 

the settlement date of an entry to a nonconsumer account. In the case of an 

entry to a consumer account, the RDFI 

may make a claim for two years from the 

entry’s Settlement Date. In addition, the 

RDFI can make a claim for entries 

settling within 95 calendar days from 

the Settlement Date of the first 

unauthorized debit to a consumer 

account. 

The Fiscal Service proposes to adopt 

this rule change. Adoption will reduce 

the number of claims for older 

transactions, although liability in some 

instances may be shifted to the Federal 

Government. On balance, the Federal 

Government may benefit from uniform 

time limits that allow the opportunity to 

assert warranty claims when applicable, 

while also establishing firm time limits 

for asserting and defending claims. 

Supplementing Data Security 

Requirements 

Nacha previously expanded its Data 

Security Requirements rule, which the 

Fiscal Service adopted,6 but in the 2021 

Operating Rules & Guidelines Nacha 

updated the effective date of part of this 

rule to be June 30, 2022. The rule 

expanded the existing ACH Security 

Framework to explicitly require large, 

non-financial institution Originators, 

Third-Party Service Providers, and 

Third-Party Senders to protect account 

numbers used in the initiation of ACH 

entries by rendering them unreadable 

when stored electronically. 

The Fiscal Service proposes to adopt 

the new effective date. The Fiscal 

Service continues to support the 

expansion of existing security 

requirements to require large nonfinancial institution Originators to 

protect account numbers used to initiate 

ACH transactions by rendering them 

unreadable while stored electronically. 

ACH Contact Registry 

In April 2019, Nacha approved a rule 

creating an ACH contact registry. Under 

this rule, all ACH financial institutions 

are required to register contact 

information for their ACH operations 

and fraud and/or risk management 

areas. Financial institutions may 

voluntarily register contacts for 

additional personnel or departments at 

their discretion. The contact 

information is available to other 

registered ACH participating financial 

institutions, Payments Associations, 

ACH Operators, and Nacha to use in the 

event of ACH-related system outages, 

erroneous payments, duplicates, 

reversals, fraudulent payments and any 

other use within scope, such as 

identifying the proper contact for letters 

of indemnity. The contact information 

includes Routing and Transit Numbers 

(RTNs). 

Nacha is implementing the ACH 

Contact Registry rule in two phases. 

Phase 1 became effective on July 1, 

2020, the date on which the registration 

portal was opened for ‘‘Participating 

Depository Financial Institutions’’ to 

begin to submit and query contact 

information. Under Phase 2, Nacha’s 

enforcement authority for the Rule 

becomes effective. 

We are proposing to not adopt this 

amendment. Although, participation in 

the registry can be expected to provide 

some benefits to the industry, all 

Federal Government RTNs are 

controlled by Treasury through the 

Fiscal Service. Fiscal Service prohibits 

debit origination to all Treasurycontrolled ACH RTNs. To mitigate the 

risk of inappropriate use of any 

Treasury RTNs, Treasury prohibits their 

publication. Joining the registry will 

unnecessarily expose Treasury RTNs to 

parties without a need to know that 

information. Moreover, under 31 CFR 


lotter on DSK11XQN23PROD with PROPOSALS1
46634 Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Proposed Rules 

210.2(d), the enforcement provisions of 

the Operating Rules & Guidelines are 

inapplicable to Federal agencies. 

Reversals 

The 2021 Operating Rules & 

Guidelines also clarify the proper 

circumstances under which an ACH 

entry may be reversed. Currently, the 

Operating Rules & Guidelines define a 

limited number of permissible reasons 

for reversing entries; however, they do 

not explicitly address improper uses of 

reversals. The amendments to the 

Operating Rules & Guidelines will 

specifically state that the initiation of 

reversing entries or files for any reason 

other than those explicitly permissible 

under the Operating Rules & Guidelines 

is prohibited and define non-exclusive 

examples of circumstances in which the 

origination of Reversals is improper. 

The reversals rule will also establish 

additional formatting requirements for 

reversals; limit the ability to modify the 

contents of other fields in a reversing 

entry to allow changes only to the extent 

necessary to facilitate proper processing 

of the reversal; explicitly permit an 

RDFI to return an improper reversal; 

and expand the permissible reasons for 

a Reversing Entry to include an error in 

the effective entry date. 

The Fiscal Service proposes to adopt 

this rule. The rule will clarify the 

circumstances under which entries can 

be reversed and assist in the efficient 

processing of ACH transactions 

involving the Federal Government. 

Meaningful Modernization 

The 2021 Operating Rules & 

Guidelines also contain five 

amendments that Nacha characterizes as 

‘‘Meaningful Modernization.’’ These 

five amendments are designed to 

improve and simplify the ACH user 

experience by facilitating the adoption 

of new technologies and channels for 

the authorization and initiation of ACH 

payments; reducing barriers to use of 

the ACH Network; providing clarity and 

increasing consistency around certain 

ACH authorization processes; and 

reducing certain administrative burdens 

related to ACH authorizations. 

Specifically, the five rules will: 

• Explicitly define the use of standing 

authorizations for consumer ACH 

debits; 

• Define and allow for oral 

authorization of consumer ACH debits 

beyond telephone calls; 

• Clarify and provide greater 

consistency of ACH authorization 

standards across payment initiation 

channels; 

• Reduce the administrative burden 

of providing proof of authorization; and 

• Better facilitate the use of electronic 

and oral Written Statements of 

Unauthorized Debit. 

Standing Authorizations 

The current authorization framework 

for consumer ACH debits encompasses 

recurring and single payments. 

Recurring payments occur at regular 

intervals, with no additional action 

required by the consumer to initiate the 

payment and are for the same or a 

similar amount. A single entry is a onetime payment and can be between 

parties that have no previous 

relationship. ACH Originators that have, 

or want to use, a different model for 

ongoing commerce do not have specific 

rules for payments that are a hybrid, 

falling somewhere in between recurring 

and single entries. 

This rule change will define a 

Standing Authorization as an advance 

authorization by a consumer of future 

debits at various intervals. The 

consumer would initiate the future 

debits by additional actions, which 

differs from the requirements for 

recurring ACH transactions. The rule 

will allow the use of different Standard 

Entry Class codes. By allowing standing 

authorizations, Nacha proposes to fill 

the gap between single and recurring 

payments and enable businesses and 

consumers to make more flexible 

payment arrangements for relationships 

that are ongoing in nature. 

The Fiscal Service proposes adoption 

of the amendment. The Fiscal Service 

believes that the Standing Authorization 

rule may increase options for initiating 

ACH transactions with the Federal 

Government. Although the Federal 

Government is not required to engage in 

Standard Authorizations, adoption of 

this rule would allow agencies to adopt 

new payment processes that better fit 

their needs, and the need of their 

customers. 

Oral Authorizations 

The current authorization language in 

the Operating Rules & Guidelines does 

not provide for oral authorizations of an 

ACH payment outside of a telephone 

call. Only the Telephone-Initiated Entry 

(TEL) Standard Entry Class Code has 

requirements to address the risks 

specific to an oral authorization. 

The Oral Authorizations rule will 

define and allow Oral Authorizations as 

a valid authorization method for 

consumer debits distinct from a 

telephone call. Nacha asserts that 

enabling the broader use of Oral 

Authorizations will allow businesses to 

adopt ACH payments in transactional 

settings that make use of verbal 

interactions and voice-related 

technologies. 

Under the rule, any oral authorization 

obtained via any channel will need to 

meet the requirement of an ‘‘oral 

authorization.’’ An oral authorization 

obtained over the internet that is not a 

telephone call also will need to meet the 

risk and security requirements that 

currently apply to internet-Initiated/ 

Mobile (VEB) ACH entries. The rule will 

allow for standing authorizations to be 

obtained orally. In addition, the rule 

will allow for subsequent entries 

initiated under a standing authorization 

to be initiated through voice commands, 

instructions, or affirmations. 

The Fiscal Service proposes adoption 

of the amendment. The Fiscal Service 

believes that the Oral Authorization rule 

may increase options for initiating 

efficient ACH transactions with the 

Federal Government. 

Other Authorization Issues 

The 2021 Operating Rules & 

Guidelines also include rules changes 

grouped as Other Authorization Issues, 

which cover other modifications and reorganizations of the general 

authorization rules for clarity, 

flexibility, and consistency. 

The rule will re-organize the general 

authorization rules to better incorporate 

Standing Authorizations, Oral 

Authorizations, and other changes. In 

addition, the amended rule will 

explicitly state that authorization of any 

credit entry to a consumer account and 

any entry to a non-consumer account 

can be by any method allowed by law 

or regulation. Only consumer debit 

authorizations require a writing that is 

signed or similarly authenticated. The 

amended rule also will require all 

authorizations to meet the standards of 

‘‘readily identifiable’’ and ‘‘clear and 

readily understandable terms,’’ which 

aim to reduce the incidence of 

erroneous transactions. Finally, the rule 

will apply the ‘‘minimum data element’’ 

standards that currently are only stated 

in the rules for Telephone-Initiated 

Entries to all consumer debit 

authorizations. 

The Fiscal Service proposes adoption 

of the amendments. The Fiscal Service 

believes that these rule amendments 

will benefit the Federal Government and 

those who participate in ACH 

transactions with it. By adopting these 

amendments, the Federal Government 

will remain current with standard 

industry practice and benefit from the 

increased flexibility afforded by the 

authorization rules. 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Proposed Rules 46635 

Alternative to Proof of Authorization 

The 2021 Operating Rules & 

Guidelines also give an ACH Originator 

and Originator the option of accepting a 

return of a transaction in lieu of 

providing a copy of an authorization. 

Under the current Rules, if an RDFI 

requests proof of authorization of a 

transaction, an Originator is required to 

provide proof of authorization to its 

ODFI in such time that the ODFI can 

respond to the RDFI’s request within ten 

banking days. Nacha reports that some 

ODFIs and Originators would prefer to 

agree to accept the return of the debit 

rather than expend the time and 

resources necessary to provide proof of 

authorization. 

Nacha believes that the ‘‘Alternative 

to Proof of Authorization’’ rule will 

reduce an administrative burden on 

ODFIs and their Originators for 

providing proof of authorization in 

every instance in which it is requested 

by an RDFI. By allowing an alternative, 

the rule is intended to help reduce the 

costs and time needed to resolve some 

exceptions in which proof of 

authorization in requested. However, if 

the RDFI still needs proof of 

authorization, the ODFI and its 

Originator must provide the proof of 

authorization within ten days of the 

RDFI’s subsequent request. 

The Fiscal Service proposes adoption 

of these amendments. The Fiscal 

Service believes that these rule 

amendments may make certain ACH 

transaction processes more efficient. For 

example, in certain instances a Receiver 

of an ACH transaction may dispute the 

authorization. If the Federal 

Government determines that it is 

inefficient to provide the requested 

proof of authorization, the new rule will 

allow it to return the ACH instead of 

expending resources to locate and 

transmit the information to the RDFI 

and Receiver. 

Written Statement of Unauthorized 

Debit via Electronic or Oral Methods 

The 2021 Operating Rules & 

Guidelines changes the ‘‘Written 

Statement of Unauthorized Debit’’ rule, 

which makes an RDFI responsible for 

obtaining a consumer’s Written 

Statement of Unauthorized Debit 

(WSUD) prior to returning a debit as 

unauthorized. However, the current 

Operating Rules & Guidelines do not 

explicitly address electronically or 

orally provided WSUDs. Instead, they 

explicitly allow electronic records and 

electronic signatures generally, which 

has resulted in confusion about the 

electronic or oral acceptance of WSUDs. 

Nacha reports that anecdotal evidence 

suggests that the significant majority of 

WSUDs are still being obtained via 

paper using a wet signature. 

The Written Statement of 

Unauthorized Debit via Electronic or 

Oral Methods rule reduces an 

administrative burden on RDFIs and 

their customers. It clarifies and makes 

explicit that an RDFI may obtain a 

consumer’s WSUD as an electronic 

record, and an RDFI may accept a 

consumer’s electronic signature, 

regardless of its form or the method 

used to obtain it. These changes will 

emphasize that WSUDs may be obtained 

and signed electronically, which could 

include the same methods permissible 

for obtaining a consumer debit 

authorization. 

The Fiscal Service proposes adoption 

of these amendments. The Fiscal 

Service believes that the amendments to 

this rule may increase the efficiency of 

ACH transactions involving the Federal 

Government by explicitly allowing 

electronic records and signatures to be 

used for written statements of 

unauthorized debits. This may allow 

ACH network participants to expedite 

the processing of allegedly fraudulent 

electronic transactions involving the 

Federal Government and other parties. 

Minor Rules Topics 

These amendments change several 

areas of the Operating Rules & 

Guidelines to address minor issues or 

correct errata. These changes have littleto-no impact on ACH participants and 

no material impact on the Federal 

Government’s participation in the ACH 

network. NACHA’s minor rule 

amendments became effective on 

various dates, according to the date of 

the Nacha errata correction or other 

message. 

The Fiscal Service proposes to adopt 

these minor rule amendments. 

III. Section-by-Section Analysis 

In order to incorporate in Part 210 the 

Operating Rules & Guidelines changes 

that we are accepting, we are replacing 

references to the 2019 Rules & 

Guidelines with references to the 2021 

Operating Rules & Guidelines. 

210.2(a) 

We are proposing to amend the 

reference to NACHA—The Electronic 

Payments Association (NACHA) to 

simply refer to Nacha. 

§ 210.2(b) 

We are proposing to amend the 

definition of ‘‘applicable ACH Rules’’ at 

§ 210.2(d) by replacing the reference to 

the ‘‘2019 NACHA Operating Rules and 

Guidelines’’ with a reference to the ACH 

Rules with an effective date on or before 

March 31, 2021, as published in ‘‘2021 

Nacha Operating Rules & Guidelines’’ 

and supplements thereto, including the 

rule change adopted on March 31, 2021 

that will increase the Same Day ACH 

limit to $1 million, effective March 18, 

2022. In addition, we are proposing to 

expand the list of Operating Rules & 

Guidelines that are not incorporated by 

reference to include the Operating Rules 

& Guidelines governing the Participating 

DFI registry. 

We are proposing to amend § 210.3(b) 

by replacing the references to the ‘‘2019 

NACHA Operating Rules & Guidelines’’ 

with references to ‘‘Nacha’s 2021 

Operating Rules & Guidelines,’’ as 

amended through March 31, 2021. 

§ 210.6 

We are proposing to amend paragraph 

(g) by replacing the reference to the 

‘‘2019 NACHA Operating Rules and 

Guidelines’’ with a reference to the 

‘‘2021 Nacha Operating Rules & 

Guidelines.’’ 

IV. Incorporation by Reference 

In this NPRM, Fiscal Service is 

proposing to incorporate by reference 

the 2021 Operating Rules & Guidelines, 

including Supplement #1–2021, as 

amended through March 31, 2021. The 

Office of Federal Register (OFR) 

regulations require that agencies discuss 

in the preamble of a proposed rule ways 

that the materials the agency proposes 

to incorporate by reference are 

reasonably available to interested 

parties or how it worked to make those 

materials reasonably available to 

interested parties. In addition, the 

preamble of the proposed rule must 

summarize the material. 1 CFR 51.5(a). 

In accordance with OFR’s requirements, 

the discussion in the Supplementary 

Information section summarizes the 

2021 Operating Rules & Guidelines. 

Financial institutions utilizing the ACH 

Network are bound by the Operating 

Rules & Guidelines and have access to 

them in the course of their everyday 

business. The Operating Rules & 

Guidelines are available as a bound 

book or in online form from Nacha— 

The Electronic Payments Association, 

2550 Wasser Terrace, Suite 400, 

Herndon, Virginia 20171, tel. 703–561– 

1100, info@nacha.org. 

V. Procedural Analysis 

Request for Comment on Plain Language 

Executive Order 12866 requires each 

agency in the Executive branch to write 

regulations that are simple and easy to 

understand. We invite comment on how 

to make the proposed rule clearer. For 


lotter on DSK11XQN23PROD with PROPOSALS1
46636 Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Proposed Rules 

example, you may wish to discuss: (1) 

Whether we have organized the material 

to suit your needs; (2) whether the 

requirements of the rule are clear; or (3) 

whether there is something else we 

could do to make the rule easier to 

understand. 

Regulatory Planning and Review 

The proposed rule does not meet the 

criteria for a ‘‘significant regulatory 

action’’ as defined in Executive Order 

12866. Therefore, the regulatory review 

procedures contained therein do not 

apply. 

Regulatory Flexibility Act Analysis 

It is hereby certified that the proposed 

rule will not have a significant 

economic impact on a substantial 

number of small entities. The proposed 

rule imposes on the Federal 

Government a number of changes that 

Nacha has already adopted and imposed 

on private sector entities that utilize the 

ACH Network. The proposed rule does 

not impose any additional burdens, 

costs or impacts on any private sector 

entities, including any small entities. 

Accordingly, a regulatory flexibility 

analysis under the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.) is 

not required. 

Unfunded Mandates Act of 1995 

Section 202 of the Unfunded 

Mandates Reform Act of 1995, 2 U.S.C. 

1532 (Unfunded Mandates Act), 

requires that the agency prepare a 

budgetary impact statement before 

promulgating any rule likely to result in 

a Federal mandate that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year. If a budgetary impact 

statement is required, section 205 of the 

Unfunded Mandates Act also requires 

the agency to identify and consider a 

reasonable number of regulatory 

alternatives before promulgating the 

rule. We have determined that the 

proposed rule will not result in 

expenditures by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year. Accordingly, we have 

not prepared a budgetary impact 

statement or specifically addressed any 

regulatory alternatives. 

List of Subjects in 31 CFR Part 210 

Automated Clearing House, Electronic 

funds transfer, Financial institutions, 

Fraud, Incorporation by reference. 

Words of Issuance 

For the reasons set out in the 

preamble, the Fiscal Service proposes to 

amend 31 CFR part 210 as follows: 

PART 210—FEDERAL GOVERNMENT 

PARTICIPATION IN THE AUTOMATED 

CLEARING HOUSE 

■ 1. The authority citation for part 210 

continues to read as follows: 

Authority: 5 U.S.C. 5525; 12 U.S.C. 391; 

31 U.S.C. 321, 3301, 3302, 3321, 3332, 3335, 

and 3720. 

■ 2. In § 210.2: 

■ a. Revise paragraph (a) and the 

introductory text to paragraph (d); 

■ b. Redesignate paragraphs (d)(2) 

through (7) as paragraphs (d)(3) through 

(8); and 

■ c. Add new paragraph (d)(2). 

The revisions and addition read as 

follows: 

§ 210.2 Definitions. 

* * * * * 

(a) ACH Rules means the Operating 

Rules and the Operating Guidelines 

published by Nacha, a national 

association of regional member clearing 

house associations, ACH Operators, and 

participating financial institutions 

located in the United States. 

* * * * * 

(d) Applicable ACH Rules means the 

ACH Rules as published in ‘‘2021 Nacha 

Operating Rules & Guidelines: A 

Complete Guide to Rules Governing the 

ACH Network’’and Supplement #1– 

2021 (both incorporated by reference, 

see § 210.3(b)), except: 

* * * * * 

(2) Section 1.14 (governing the 

Participating DFI Contact registry); 

* * * * * 

■ 3. In § 210.3, revise paragraph (b) to 

read as follows: 

§ 210.3 Governing law. 

* * * * * 

(b) Incorporation by reference. Certain 

material is incorporated by reference 

into this part with the approval of the 

Director of the Federal Register under 5 

U.S.C. 552(a) and 1 CFR part 51. To 

enforce any edition other than that 

specified in this section, the Bureau of 

Fiscal Service must publish a document 

in the Federal Register and the material 

must be available to the public. All 

approved material is available for 

inspection at the Bureau of the Fiscal 

Service, 401 14th Street SW, Room 

400A, Washington, DC 20227, and from 

the sources listed elsewhere in this 

paragraph. It is also available for 

inspection at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at NARA, email fr.inspection@

nara.gov or go to www.archives.gov/ 

federal-register/cfr/ibr-locations.html. 

(1) Nacha, 2550 Wasser Terrace, Suite 

400, Herndon, Virginia 20171, tel. 703– 

561–1100, info@nacha.org. 

(i) 2021 Nacha Operating Rules & 

Guidelines, with an effective date on or 

before March 31, 2021. 

(ii) Supplement #1–2021 to the 2021 

Nacha Operating Rules & Guidelines. 

(2) [Reserved] 

* * * * * 

David A. Lebryk, 

Fiscal Assistant Secretary. 

[FR Doc. 2021–17268 Filed 8–18–21; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2021–0637] 

RIN 1625–AA00 

Safety Zone; Ironman Michigan, 

Frankfort Harbor, MI 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard is proposing 

to establish a temporary safety zone for 

certain waters of Betsie Lake in 

Frankfort, MI. This action is necessary 

to provide for the safety of life on these 

navigable waters during the swim 

portion of an Ironman event on 

September 12, 2021. This proposed 

rulemaking would restrict usage by 

persons and vessels within the safety 

zone. At no time during the effective 

period may vessels transit the waters of 

Betsie Lake in the vicinity of a 

triangular shaped race course enclosed 

by the following three coordinates: 

44°37.88′ N, 86°13.82′ W to 44°37.83′ N, 

86°14.17′ W, to 44°37.54′ N, 86°13.67′ W 

then back to the starting point. The race 

course will be marked by buoys. These 

restrictions would apply to all vessels 

during the effective period unless 

authorized by the Captain of the Port 

Lake Michigan (COTP) or a designated 

representative. We invite your 

comments on this proposed rulemaking. 

DATES: Comments and related material 

must be received by the Coast Guard on 

or before September 3, 2021. 

ADDRESSES: You may submit comments 

identified by docket number USCG– 

2021–0637 using the Federal 

eRulemaking Portal at https:// 


lotter on DSK11XQN23PROD with PROPOSALS1