Source: https://www.law.cornell.edu/cfr/text/12/210.6
Timestamp: 2016-10-01 14:59:02
Document Index: 767385831

Matched Legal Cases: ['art 210', '§ 229', '§ 229', 'art 229', 'art 229', 'art 229', '§ 229', 'art 229', '§ 229', 'art 229', '§ 248', '§ 342', '§ 360', '§ 464', '§ 4001', '§ 4002', '§ 4003', '§ 4004', '§ 4005', '§ 4006', '§ 4007', '§ 4008', '§ 4009', '§ 4010', '§ 5001', '§ 5002', '§ 5003', '§ 5004', '§ 5005', '§ 5006', '§ 5007', '§ 5008', '§ 5009', '§ 5010', '§ 5011', '§ 5012', '§ 5013', '§ 5014', '§ 5015', '§ 5016', '§ 5017', '§ 5018']

12 CFR 210.6 - Status, warranties, and liability of Reserve Bank. | US Law | LII / Legal Information Institute
CFR › Title 12 › Chapter II › Subchapter A › Part 210 › Subpart A › Section 210.6 12 CFR 210.6 - Status, warranties, and liability of Reserve Bank.
Status. A Reserve Bank that handles an item shall act as agent or subagent of the owner with respect to the item. This agency terminates when a Reserve Bank receives final payment for the item in actually and finally collected funds, a Reserve Bank makes the proceeds available for use by the sender, and the time for commencing all actions against the Reserve Bank has expired.
Limitations on Reserve Bank liability. A Reserve Bank shall not have or assume any liability with respect to an item or its proceeds except - (i) For the Reserve Bank's own lack of good faith or failure to exercise ordinary care;
(ii) As provided in paragraph (b) of this section; and
(iii) As provided in subparts C and D of Regulation CC.
Reliance on routing designation appearing on item. A Reserve Bank may present or send an item based on the routing number or other designation of a paying bank or nonbank payor appearing in any form on the item when the Reserve Bank receives it. A Reserve Bank shall not be responsible for any delay resulting from its acting on any designation, whether inscribed by magnetic ink or by other means, and whether or not the designation acted on is consistent with any other designation appearing on the item.
Warranties and liability. The following provisions apply when a Reserve Bank presents or sends an item.
Warranties for all items. The Reserve Bank warrants to a subsequent collecting bank and to the paying bank and any other payor that - (i) The Reserve Bank is a person entitled to enforce the item (or is authorized to obtain payment of the item on behalf of a person that is either entitled to enforce the item or authorized to obtain payment on behalf of a person entitled to enforce the item);
(iii) The item bears all indorsements applied by parties that previously handled the item, in paper or electronic form, for forward collection or return.
Warranties for all electronic items. The Reserve Bank makes all the warranties set forth in and subject to the terms of 4-207 of the U.C.C. for an electronic item as if it were an item subject to the U.C.C. and makes the warranties set forth in and subject to the terms of § 229.34(c) and (d) of this chapter for an electronic item as if it were a check subject to that section.
Warranties and indemnity for electronic items that are not representations of substitute checks.
(i) If the electronic item is not a representation of a substitute check, the Reserve Bank warrants to the bank to which it transfers or presents that item that - (A) The electronic image portion of the item accurately represents all of the information on the front and back of the original check as of the time that the original check was truncated; the information portion of the item contains a record of all MICR-line information required for a substitute check under § 229.2(aaa) of this chapter; and the item conforms to the technical standards for an electronic item set forth in an operating circular; and
(B) No person will receive a transfer, presentment, or return of, or otherwise be charged for, the electronic item, the original item, or a paper or electronic representation of the original item such that the person will be asked to make payment based on an item it already has paid.
(ii) If the item is an electronic item that is not a representation of a substitute check - (A) Except as provided in paragraph (b)(3)(ii)(B) of this section, the Reserve Bank agrees to indemnify the bank to which it transfers or presents the electronic item (the recipient bank) for the amount of any losses that the recipient bank incurs under subpart D of part 229 of this chapter for an indemnity that the recipient bank was required to make under subpart D of part 229 of this chapter in connection with a substitute check later created from the electronic item.
(B) The Reserve Bank shall not be liable under paragraph (b)(3)(ii)(A) of this section for any amount that the recipient bank pays under subpart D of part 229 of this chapter that is attributable to the lack of good faith or failure to exercise ordinary care of the recipient bank or a person that handled the item, in any form, after the recipient bank.
Limitation on liability. A Reserve Bank shall not have or assume any liability to the paying bank or other payor, except as provided in paragraph (b) of this section, § 229.34(c) or subpart D of part 229 of this chapter, or for the Reserve Bank's own lack of good faith or failure to exercise ordinary care.
Time for commencing action against Reserve Bank.
(1) A claim against a Reserve Bank for lack of good faith or failure to exercise ordinary care shall be barred unless the action on the claim is commenced within two years after the claim accrues. Such a claim accrues on the date when a Reserve Bank's alleged failure to exercise ordinary care or to act in good faith first results in damages to the claimant.
(3) This paragraph (d) does not alter the time limit for claims under section 229.38(g) of this chapter (which include claims for breach of warranty under § 229.34 of this chapter) or subpart D of part 229 of this chapter.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.United States CodeU.S. Code: Title 12 - BANKS AND BANKING§ 248 - Enumerated powers§ 342 - Deposits; exchange and collection; member and nonmember banks or other depository institutions; charges§ 360 - Receiving checks and drafts on deposit at par; charges for collections, exchange, and clearances§ 464 - Checking against and withdrawal of reserve balance§ 4001 - Definitions§ 4002 - Expedited funds availability schedules§ 4003 - Safeguard exceptions§ 4004 - Disclosure of funds availability policies§ 4005 - Payment of interest§ 4006 - Miscellaneous provisions§ 4007 - Effect on State law§ 4008 - Regulations and reports by Board§ 4009 - Administrative enforcement§ 4010 - Civil liability§ 5001 - Findings; purposes§ 5002 - Definitions§ 5003 - General provisions governing substitute checks§ 5004 - Substitute check warranties§ 5005 - Indemnity§ 5006 - Expedited recredit for consumers§ 5007 - Expedited recredit procedures for banks§ 5008 - Delays in an emergency§ 5009 - Measure of damages§ 5010 - Statute of limitations and notice of claim§ 5011 - Consumer awareness§ 5012 - Effect on other law§ 5013 - Variation by agreement§ 5014 - Regulations§ 5015 - Study and report on funds availability§ 5016 - Statistical reporting of costs and revenues for transporting checks between reserve banks§ 5017 - Evaluation and report by the Comptroller General§ 5018 - Depositary services efficiency and cost reduction
12 CFR 210.5 — Sender's Agreement; Recovery by Reserve Bank.