Opinion ID: 1722513
Heading Depth: 1
Heading Rank: 9

Heading: Admission of the Clearing Agreement

Text: Pursuant to congressional authorization and under the provisions of Regulation J issued by the Board of Governors of the Federal Reserve System pursuant to the statutes, Federal Reserve Banks are authorized to act as collecting banks. Berman offered, and there was received in evidence over the Bank's objection, a certain clearing agreement between the Fed, the Bank, and other Omaha national banks. It provided that the banks establish reserve accounts at the Fed; that all items drawn on a bank would be charged against the reserve account of the bank on which drawn, providing various rules to be followed, among which was the following: The drawee bank shall have the right to return all items handled by said Federal Reserve Bank hereunder, . . . to said Omaha Branch not later than 3:30 P.M. on the next business day following the date of receipt of the same; that settlement on such items returned within the deadline was only provisional; and that upon expiration of the deadline without return the settlement was final. Such agreement altering the provisions of the Uniform Commercial Code are authorized by statute. § 4-103(1), U.C.C. Objection was made to the admittance of the agreement on the grounds that it was irrelevant and immaterial because it did not pertain to payable through drafts. This contention is, of course, not good if, as we have determined, the drafts were not payable through drafts.