I 

116TH CONGRESS 

1ST SESSION H. R. 3951 

To amend the Expedited Funds Availability Act to require that funds deposited be available for withdrawal in real time and to require the Board 

of Governors of the Federal Reserve System to create a real time payment system, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 24, 2019 

Ms. PRESSLEY (for herself and Mr. GARCI ́A of Illinois) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Expedited Funds Availability Act to require 

that funds deposited be available for withdrawal in real 

time and to require the Board of Governors of the Federal Reserve System to create a real time payment system, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Payments Moderniza5 tion Act of 2019’’. 


kjohnson on DSK79L0C42 with BILLS
2 

•HR 3951 IH

1 SEC. 2. REQUIREMENT THAT FUNDS DEPOSITED BE AVAIL2 ABLE FOR WITHDRAWAL IN REAL TIME. 

3 (a) EXPEDITED FUNDS AVAILABILITY SCHED4 ULES.—Section 603 of the Expedited Funds Availability 

5 Act (12 U.S.C. 4002) is amended— 

6 (1) in subsection (a)— 

7 (A) in paragraph (1)— 

8 (i) by striking ‘‘Except as provided in 

9 subsection (e) and in section 604, in’’ and 

10 inserting ‘‘In’’; and 

11 (ii) in the matter following subpara12 graph (B) by striking ‘‘not later than the 

13 business day after the business day on 

14 which’’ and inserting ‘‘in real time when’’; 

15 (B) in paragraph (2) by striking ‘‘not later 

16 than the business day after the business day on 

17 which’’ and inserting ‘‘in real time after’’; and 

18 (C) in the subsection heading by striking 

19 ‘‘NEXT BUSINESS DAY’’ and inserting ‘‘REAL

20 TIME’’; 

21 (2) by striking subsection (b) and inserting the 

22 following: 

23 ‘‘(b) PERMANENT SCHEDULE.—Funds deposited in 

24 an account at a depository institution by a check drawn 

25 on a local or nonlocal originating depository institution 

26 shall be available for withdrawal in real time.’’; 


kjohnson on DSK79L0C42 with BILLS
3 

•HR 3951 IH

1 (3) by striking subsection (c); 

2 (4) by striking subsection (d); 

3 (5) by redesignating subsections (e) and (f) as 

4 subsections (c) and (d), respectively; 

5 (6) in subsection (c), as redesignated by para6 graph (5)— 

7 (A) in paragraph (1)(A)— 

8 (i) by striking ‘‘Not more than 4 busi9 ness days shall intervene between the busi10 ness day a’’ and inserting ‘‘A’’; 

11 (ii) by inserting a comma after ‘‘sub12 paragraph (B)’’; 

13 (iii) by striking ‘‘is’’; and 

14 (iv) by striking ‘‘and the business day 

15 on which funds from such deposit are 

16 available for withdrawal’’ and inserting 

17 ‘‘shall be available for withdrawal in real 

18 time’’; and 

19 (B) in paragraph (2)— 

20 (i) by striking ‘‘, (b), and (c)’’ and in21 serting ‘‘and (b)’’; and 

22 (ii) in the paragraph heading by strik23 ing ‘‘TEMPORARY AND PERMANENT

24 SCHEDULES’’ and inserting ‘‘PERMANENT

25 SCHEDULE’’; and 


kjohnson on DSK79L0C42 with BILLS
4 

•HR 3951 IH

1 (7) in subsection (d), as redesignated by para2 graph (5), by striking ‘‘(c), or (e)’’ and inserting ‘‘or 

3 (c)’’. 

4 (b) SAFEGUARD EXCEPTIONS.—Section 604 of the 

5 Expedited Funds Availability Act (12 U.S.C. 4003) is 

6 amended— 

7 (1) in subsection (a)— 

8 (A) in paragraph (1)— 

9 (i) in the matter following subpara10 graph (D) by striking ‘‘on the business day 

11 after the business day on which such cash 

12 or funds are deposited or, in the case of a 

13 wire transfer, on the business day after the 

14 business day on which’’ and inserting ‘‘in 

15 real time after such cash or funds are de16 posited or, in the case of a wire transfer, 

17 in real time after’’; and 

18 (ii) in the paragraph heading by strik19 ing ‘‘NEXT BUSINESS DAY’’ and inserting 

20 ‘‘REAL TIME’’; 

21 (B) in paragraph (2)— 

22 (i) by striking ‘‘, 603(c),’’; and 

23 (ii) by striking ‘‘603(e)’’ and inserting 

24 ‘‘603(c)’’; and 


kjohnson on DSK79L0C42 with BILLS
5 

•HR 3951 IH

1 (C) by striking paragraph (3)(B) and in2 serting the following: 

3 ‘‘(B) any such funds deposited in excess of 

4 such amount shall be available for withdrawal 

5 in real time.’’; 

6 (2) in subsection (b) by striking ‘‘(c), or (e)’’ 

7 and inserting ‘‘or (c)’’; 

8 (3) in subsection (c)(1) by striking ‘‘(c), and 

9 (e)’’ and inserting ‘‘and (c)’’; and 

10 (4) in subsection (d) by striking ‘‘(c), and (e)’’ 

11 and inserting ‘‘and (c)’’. 

12 (c) MISCELLANEOUS PROVISIONS.—Section 607 of 

13 the Expedited Funds Availability Act (12 U.S.C. 4006) 

14 is amended— 

15 (1) by striking subsections (a) and (b); and 

16 (2) by redesignating subsections (c) through (f) 

17 as subsections (a) through (d), respectively. 

18 (d) REGULATIONS AND REPORTS BY BOARD.—Sec19 tion 609 of the Expedited Funds Availability Act (12 

20 U.S.C. 4008) is amended— 

21 (1) by striking subsections (d) and (f); and 

22 (2) by redesignating subsection (e) as sub23 section (d). 


kjohnson on DSK79L0C42 with BILLS
6 

•HR 3951 IH

1 SEC. 3. REAL TIME PAYMENT SYSTEM. 

2 (a) IN GENERAL.—The Board of Governors of the 

3 Federal Reserve System shall create a real time payment 

4 system that— 

5 (1) at a minimum, conforms with the principles 

6 outlined in the final report of the Faster Payments 

7 Task Force of the Federal Reserve System; 

8 (2) allows end users have fast access to funds, 

9 in speeds approaching real time; 

10 (3) operates as a utility, allowing end users to 

11 reach any other end user, including unbanked, un12 derserved, and cross-border end users, regardless of 

13 the solution used by the end user; 

14 (4) prioritizes safety and soundness, consumer 

15 health, efficiency, and other relevant public interest 

16 considerations; 

17 (5) provides end users with the confidence and 

18 trust in the safety and security of the system by en19 suring that— 

20 (A) fraud and errors are minimized and re21 solved quickly; and 

22 (B) the assets, accounts, and information 

23 of the end user are protected, even as payments 

24 cross different solutions; 

25 (6) has transparent operating information; and 


kjohnson on DSK79L0C42 with BILLS
7 

•HR 3951 IH

1 (7) ensures that there are no volume discounts 

2 made that disadvantage smaller financial institu3 tions. 

4 (b) REAL TIME PAYMENT SYSTEM DEFINED.—In 

5 this section, the term ‘‘real time payment system’’ means 

6 a payment-by-payment interbank settlement system that 

7 facilitates settlements in real time and at any time, on 

8 any day, including weekends and holidays. 

Æ 


kjohnson on DSK79L0C42 with BILLS