Comment Call: Remotely Created Checks

CUNA
April 3, 2005

The Federal Reserve Board issued a proposal to amend Regulation CC that would define “remotely created checks” and create transfer and presentment warranties for these checks. The proposal defines a remotely created check as a check that is drawn on a customer account at a bank is created by the payee and does not bear a signature in the format agreed to by the paying bank and the customer. The Board proposes to create transfer and presentment warranties that would ultimately shift liability for the loss created by an unauthorized remotely created check to the depositary institution. Click here for CUNA's comment call with additional information.