curred up to the time the original check or such
copy is provided to the indemnified party; and
(B) have a right to the return of any funds
the bank has paid under the indemnity in ex-
cess of those losses.
(2) COORDINATION
OF
INDEMNITY
WITH
IM-
PLIED WARRANTY.—The production of the original
check, a substitute check, or a copy under paragraph
(1) by an indemnifying bank shall not absolve the
bank from any liability on a warranty established
under this Act or any other provision of law.
(e) SUBROGATION OF RIGHTS.—
(1) IN
GENERAL.—Each indemnifying bank
shall be subrogated to the rights of any indemnified
party to the extent of the indemnity.
(2) RECOVERY
UNDER
WARRANTY.—A bank
that indemnifies a party under this section may at-
tempt to recover from another party based on a war-
ranty or other claim.
(3) DUTY OF INDEMNIFIED PARTY.—Each in-
demnified party shall have a duty to comply with all
reasonable requests for assistance from an indem-
nifying bank in connection with any claim the in-
demnifying bank brings against a warrantor or other
party related to a check that forms the basis for the
indemnification.
SEC. 6. EXPEDITED RECREDIT FOR CONSUMERS.
(a) RECREDIT CLAIMS.—
(1) IN
GENERAL.—A consumer may make a
claim for expedited recredit from the bank that
holds the account of the consumer with respect to a
substitute check, if the consumer asserts in good
faith that—
(A) the bank charged the consumer’s ac-
count for a substitute check that was provided
to the consumer;
(B) either—
(i) the check was not properly charged
to the consumer’s account; or
(ii) the consumer has a warranty
claim with respect to such substitute
check;
(C) the consumer suffered a resulting loss;
and
(D) the production of the original check or
a better copy of the original check is necessary
to determine the validity of any claim described
in subparagraph (B).
(2) 30-DAY PERIOD.—Any claim under para-
graph (1) with respect to a consumer account may
be submitted by a consumer before the end of the
30-day period beginning on the later of—
(A) the date on which the consumer re-
ceives the periodic statement of account for
such account which contains information con-
cerning the transaction giving rise to the claim;
or
(B) the date the substitute check is made
available to the consumer.
(3) EXTENSION
UNDER
EXTENUATING
CIR-
CUMSTANCES.—If the consumer’s ability to submit
the claim within the 30-day period under paragraph
(2) is delayed due to extenuating circumstances, in-
cluding extended travel or the illness of the con-
sumer, the 30-day period shall be extended for a
total not to exceed 30 additional days.
(b) PROCEDURES FOR CLAIMS.—
(1) IN GENERAL.—To make a claim for an ex-
pedited recredit under subsection (a) with respect to
a substitute check, the consumer shall provide to the
bank that holds the account of such consumer—
(A) a description of the claim, including an
explanation of—
(i) why the substitute check was not
properly charged to the consumer’s ac-
count; or
(ii) the warranty claim with respect to
such check;
(B) a statement that the consumer suf-
fered a loss and an estimate of the amount of
the loss;
(C) the reason why production of the origi-
nal check or a better copy of the original check
is necessary to determine the validity of the
charge to the consumer’s account or the war-
ranty claim; and
(D) sufficient information to identify the
substitute check and to investigate the claim.
(2) CLAIM IN WRITING.—The bank holding the
consumer account that is the subject of a claim by
the consumer under subsection (a) may, in the dis-
cretion of the bank, require the consumer to submit
the information required under paragraph (1) in
writing.
(c) RECREDIT TO CONSUMER.—
(1) CONDITIONS
FOR
RECREDIT.—The bank
shall recredit a consumer account in accordance with
paragraph (2) for the amount of a substitute check
that was charged against the consumer account if—
(A) a consumer submits a claim to the
bank with respect to that substitute check that
meets the requirement of subsection (b); and
(B) the bank has not provided to the con-
sumer the original check, a substitute check, or
a copy of the original check and demonstrates
that the substitute check was properly charged
to the consumer’s account.
(2) TIMING OF RECREDIT.—
(A) IN GENERAL.—The bank shall recredit
the consumer’s account for the amount de-
scribed in paragraph (1) no later than the end
of the business day following the business day
on which the bank determines the consumer’s
claim is valid.
(B) 
RECREDIT
PENDING
INVESTIGA-
TION.—If the bank has not yet determined that
the consumer’s claim is valid before the end of
the 10th business day after the business day on
which the consumer submitted the claim, the
bank shall recredit the consumer’s account
for—