District Circular Letters
 District
Circular Letters Index
December 18, 1998
REGULATION J and CC:
SAME-DAY SETTLEMENT RULE
REGULATION CC:
MAXIMUM HOLD FOR NONLOCAL CHECKS
To All Depository Institutions
In the Twelfth Federal Reserve District
Decision against Revision of Same-Day Settlement Rule (Docket
R-1009)
The Federal Reserve Board has announced that it has decided not to make
regulatory changes with respect to the remaining legal disparities that
exist between Federal Reserve Banks and private-sector banks in the presentment
and settlement of checks. The Board has concluded that the costs associated
with further reducing these legal disparities would outweigh any payments
system efficiency gains.
The decision is based on the Board's analysis of comments received regarding
the effects of its 1994 same-day settlement rule and on whether further
changes in this area are warranted.
Proposed Shortening of Maximum Hold for Many Nonlocal Checks
(Docket
R-1031)
The Board has requested comment on the potential benefits and drawbacks
of a modification to its Regulation CC, Availability of Funds and Collection
of Checks, that would shorten the maximum hold for many nonlocal checks.
Comments are requested by March 15, 1999.
This modification would shorten the availability schedule for nonlocal checks
from five to four business days but permit a depositary bank to retain a
five-day schedule for those categories of nonlocal checks that it certifies
are not generally returned within a shorter period. This proposal is one
of several alternative modifications to the nonlocal check availability
schedule that the Board is considering.
Copies
Copies of the Board's notices (Docket
R-1009 and Docket
R-1031) are available from our Corporate Services Department.
To request copies to be sent via mail, please call (415) 974-2748.
To request copies to be sent via fax, please call (415) 974-3333,
and specify document numbers 4116 and 4133,
respectively.
Additional Information
For additional information regarding these matters, please contact our
Payment and Cash Services Department, at (415) 974-3450
[for Regulation J], and our Legal Department, at (415) 974-2256
[for Regulation CC].
FEDERAL RESERVE BANK OF SAN FRANCISCO
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