The Federal Reserve Board ("FRB") final rule to simplify the electronic collection of checks and funds was published in the Federal Register. The final rule is effective on January 1, 2019.
As previously covered, the final rule makes changes to Regulation J, which will (i) simplify provisions concerning electronic check collection, (ii) remove redundant or obsolete terminology and provisions, and (iii) accommodate recent changes to Regulation CC concerning electronic check collection and return provisions. The final rule also amends Regulation J, Subpart B to "clarify that terms utilized in financial messaging standards . . . do not confer legal status or responsibilities."
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