On May 31, the Board of Governors of the Federal Reserve System (Board) announced final amendments to the check collection and return provisions in Regulation CC, Availability of Funds and Collection of Checks, which implements the Expedited Funds Availability Act of 1987, the Check Clearing for the 21st Century Act of 2003 and the official staff commentary of the regulation. The amendments update Regulation CC “to reflect the evolution of the nation's check collection system from one that is largely paper-based to one that is virtually all electronic.” The Board (i) retained the current same-day settlement rule for paper checks; (ii) applied Regulation CC’s existing check warranties to check that are collected electronically; and (iii) adopted new warranties and indemnities related to checks collected and returned electronically and to electronically-created items.

In addition to the final rule, the Board also requested comments on proposed language amending Regulation CC's existing liability provisions to include a presumption that a substitute or electronic check was altered instead of forged in the event of a dispute under federal or state law in the absence of evidence such as the original check. Comments on the proposed amendments are requested within 60 days of publication in the Federal Register.