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federal R eserve Ba n k o f D allas DALLAS, TEXAS 75222 Circular No. 82-162 Decem ber 16, 1982 BULLETIN 11 AUTOMATED CLEARING HOUSE OPERATIONS TO ALL DEPOSITORY INSTITUTIONS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: A revised Bulletin 11, Automated Clearing House Operations has been prepared e ffe c tiv e Decem ber 30, 1982. Section 12.15, Disputed Returns, has been added. The footnote to Appendix A has been expanded with regard to restricted debits for the night cycle. Appendix B has been revised to re fle c t the charges for both day cycle and night cycle. This bulletin should be filed in Volume 1 of the Regulations Binders and the previous bulletin should be removed. Questions regarding the changes to Bulletin 11 should be directed to Mary M. Rosas, (214) 651-6336 or Thomas D. Holloway, (214) 651-6123 at the Head O ffice; Larry Wilson, (915) 544-4730 at the El Paso Branch; Vernon L. Bartee, (713) 659-4433 at the Houston Branch; and John A. Bullock, (512) 224-2141 at the San Antonio Branch. Additional copies of this circular will be furnished upon request to the Department of Communications, Financial and Community Affairs, Extension 6289. Sincerely yours, William H. Wallace First Vice President Enclosure Banks and others are encouraged to use the following incoming W ATS numbers in contacting this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BULLETIN 11 Automated Clearing House Operations FEDERAL RESERVE BANK OF DALLAS SCOPE This bulletin co n tain s the term s a n d conditions u n d e r w h ich we will p ro c ess A utom ated C learing House items. BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS TABLE O F CONTENTS 6.10 Section 1, GENERAL 1.00 1.05 A uthority Uniform provisions 6.15 Section 7, TIME SCHEDULES, SETTLEMENT DATES AND EXTENSIONS OF TIME LIMITS Section 2, DEFINITIONS 2.00 2.05 2.10 2.15 2.20 2.25 2.30 2.35 2.40 2.45 2.50 2.55 2.60 2.65 2.70 2.75 2.80 2.85 2.90 2.95 2.96 A ccount h o ld er A ctually a n d finally collected funds A pplicable ACH ru les A pproved m edium A utom ated clearin g house or ACH ACH region A utom ated cle arin g house ru les or ACH ru les Banking day C redit item Debit item D epository in stitu tio n Effective d a te w indow Interoffice tra n s a c tio n In trao ffice tra n s a c tio n Item O riginator O rig in ato r’s ac co u n t o r re c e iv e r’s acco un t O rig in ato r’s R eserve Bank R eceiver R eceiv er’s R eserve Bank Settlem ent d a te 7.00 7.05 7.10 8.00 8.05 8.10 8.15 8.20 8.25 Section 10, RECEIVER’S AGREEMENTS 10.00 10.05 5.05 5.10 11.00 11.05 11.10 12-30-82 Right to revoke N onsufficient funds D uplicate or erro n eo u s b a tc h Section 12, RETURN OF ITEMS AND FUNDS A uthorized orig in ato r A pproved electro n ic m edia P re s c rib e d form at C ertification of orig in ato r a n d receiv er P renotification 12.00 12.05 12.10 12.15 R etu rn of items N otification of change Responsibility for tim eliness D isputed R eturns Section 13, ADVICES TO ACCOUNT HOLDERS Section 14, RECORDS O rig in ato r’s ag reem en ts Limit of ag reem en t S ettlem ent of acco u n t 14.00 14.05 R etention of re co rd s D isclosure of re co rd s Section 15, PRICING Section 16, RESERVE BANK LIABILITY ACH ru les in th is F ed eral R eserve D istrict ACH ru les for rem ote origination Responsibility for com pliance 16.00 16.05 16.10 16.15 16.20 16.25 Section 6, HANDLING OF ITEMS 6.00 6.05 R eceiv er’s agreem ents Limit of ag reem en t Section 11, REVOCATION OF ITEMS Section 5, APPLICABLE ACH RULES 5.00 O rig in a to r’s acco u n t R eceiv er’s acco u n t Use of c re d it given Availability of c red it Suspension o r closing of the originator or re ceiv e r Q ualification for re se rv e s Section 9, SETTLEMENT AGREEMENTS Section 4, ORIGINATOR’S AGREEMENTS 4.00 4.05 4.10 Cut-off a n d settlem en t d a te s Settlem ent d a te for c e rta in item s Delay beyond time limits Section 8, SETTLEMENT AND AVAILABILITY OF CREDIT Section 3, SENDING CREDIT AND DEBIT ITEMS 3.00 3.05 3.10 3.15 3.20 Item s se n t to a d ifferen t F ed eral R eserve te rrito ry N otification by telephone In trao ffice tra n s a c tio n M an n e r of sending to re ceiv e r Lim itations on liability M e a s u re of dam ages R eserve B ank indem nity Lim itation on claim s R ecovery by R eserve Bank M ethods of reco v ery Section 17, RIGHT TO AMEND i BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS of w h ich a r e re a s o n a b ly a v a ila b le to all o rig in ato rs a n d re c e iv e rs w ithin a n ACH region th a t a re d esig n ate d by a R eserve B ank in its bulletin as ap p licab le to ACH tra n s a c tio n s w ithin the region or b etw e en ACH regions. “ A pplicable ACH ru le s ” does not include provisions in ACH ru le s th a t a r e n o t a p p lica b le to t r a n s a c tions u n d e r this bulletin b ec au se they a r e in conflict w ith reg u latio n s a n d policy guidelines of th e B o ard of G overnors of the F ed eral R eserve System or policy guidelines of the C onference of F irst Vice P resid en ts o r the C onference of P resid en ts or ap p licab le law , a n d provisions (i) limiting the ru le s ’ ap p licatio n to m em bers of an ACH association, (ii) re q u irin g dues or fees (other th a n a re a so n a b le fee for copies of th e ACH rules), a n d (iii) req uirin g execution of ag reem en ts (such as settlem en t or indem nity agreem ents); b u t su ch provisions m ay b in d m em bers of the ACH association. The bulletin may desig n ate ACH ru les from an o th e r ACH region as ap p licab le to a local region, in the ab se n c e of ap p licab le ACH ru les for the local region. Section 1, GENERAL 1 .0 0 Authority 1. This bulletin a n d our time sch ed u les govern the clearin g a n d settlem en t of a u to m ate d clearing house (ACH) item s by this Bank. This bulletin is issu ed p u rs u a n t to Sections 4, 11A, 13, 16 a n d 19 of the F ed eral R eserve Act a n d r e la te d sta tu te s . It is binding on originators, receiv ers, a n d o th er p a rtie s in te re s te d in a n item a n d on e a c h account holder agreeing to settle for item s u n d e r this bulletin. This b ulletin p re em p ts or s u p e rse d e s ag reem en ts or o ther arra n g e m e n ts among p a rtie s to au to m ated clearin g house item s only to the ex te n t th a t provisions of those a rra n g e m e n ts a r e in co nsistent w ith th is bulletin. 1.05 Uniform provisions Each R eserve Bank h a s issued a bulletin s u b s ta n tially sim ilar to this one, containing uniform p ro v i sions concerning interoffice tra n sa c tio n s, ex c ep t th a t the F ed eral R eserve Bank of New York h as issu ed a bulletin providing only for delivery an d settlem en t of ACH item s on b eh a lf of m em bers of an ACH association. W hen we send a n item to an o th e r R eserve Bank, th a t Reserve Bank h an d les the item subject to its bulletin an d time schedules. W e give c red it to or ch a rg e th e originator or re c i pient for the item in a c c o rd a n c e w ith our time schedules. 2.15 “ A pproved m edium ” m ean s any of th e following w ritings specified in this b ulletin or in the ap p licab le ACH rules; any form of com m unications, o th er th a n voice, re g is te re d on (or in form suitable for being re g iste re d on) m agnetic tap e , disc, or o th er medium desig n ed to co n tain in d u ra b le form conventional signals u sed for electro n ic com m unication of m essages, or output p ro d u c ed from this form of com m unication. Section 2, DEFINITIONS As u sed in this bulletin, unless the co ntex t o th e r w ise req u ires: 2.00 Account holder 2.20 “ A ccount h o ld e r” m eans a R eserve Bank, a d epository institution, or o th er in stitu tio n m ain taining an acco u n t w ith a R eserve Bank. 2.05 Actually and finally collected funds 2.25 ACH region “ ACH re g io n ” m eans a geographic a r e a w ithin w hich depository institutions a re eligible to p a r ticip ate u n d er c e rta in ACH rules. Applicable ACH rules “ A pplicable ACH ru le s ” m ean s ACH rules, copies 12-30-82 Automated clearing house or ACH “ A utom ated cle arin g h o u se ” or “ ACH” m eans a R eserve Bank or o th er facility th a t c le a rs debit an d c re d it item s for depository institutions. An ACH asso ciatio n m ay use m ore th a n one ACH. “ A ctually a n d finally collected fu n d s” m ean s c a sh or any o ther form of p aym ent th a t is, o r h a s becom e, final a n d irrev ocable. 2.10 Approved medium 1 BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS 2.30 2.70 Automated clearing house rules or ACH rules “ A utom ated clearin g house ru le s ” or “ ACH r u le s ” m eans the ru les a n d p ro c e d u re s or ag reem en ts pro v id ed by a group of depository in stitutions, su ch as a n au to m ate d clearin g house association, th a t com prehensively govern the clearin g of item s among p a rtic ip a n ts in an au to m ate d clearin g house p aym ent system . 2.35 Banking day “ Banking d a y ” m ean s a day d uring w h ich a R eserve Bank, a n acco u n t holder, o riginator, or re ceiv e r is open to the public for ca rry in g on su b stan tially all its banking functions. 2.40 Credit item “ C redit item ” m ean s an item se n t to a Reserve Bank by a n originator for debit to the o rig in a to r’s ac co u n t a n d for c red it to a re c e iv e r’s account. 2.45 Debit item “ Debit item ” m eans a n item se n t to a R eserve Bank by an o riginator for c re d it to the o rig in ato r’s acco u nt a n d for debit to a re c e iv e r’s account. 2.50 2.75 Depository institution 2.80 2.85 Interoffice transaction 2.90 Receiver “ R eceiv er” m ean s a depository in stitu tio n or o th er au th o rized institution, w h e th e r or not a m em ber of a n ACH association, th a t is d esig n ated in a n item to receive the item from a R eserve Bank. Intraoffice transaction “ In trao ffice tra n s a c tio n ” m eans a tra n s a c tio n b etw e en an orig in ator a n d re ceiv e r th a t a re dom iciled in th e sam e ACH region. 12-30-82 Originator’s Reserve Bank “ O rig in a to r’s R eserve B an k” m ean s the R eserve Bank office to w h ich a n orig in ato r sen d s a n item in a c c o rd a n c e w ith th e R eserve B ank’s bulletin. “ In teroffice tra n s a c tio n ” m ean s a tra n s a c tio n b etw e en an orig in ator an d re ceiv e r th a t a re dom iciled in d ifferen t ACH regions. 2.65 Originator's account or receiv er’s account “ O rig in ato r's a c c o u n t” or “ re c e iv e r’s a c c o u n t” m ean s the acco u n t a t a R eserve B ank the orig in ato r or receiv er, respectively, m ain tain s or uses u n d e r an a rra n g e m e n t b etw e en the R eserve Bank a n d an ac co u n t holder, for settlem en t u n d er a bulletin governing ACH item s. E ffective date window “ Effective d a te w in do w ” m ean s the minimum a n d m axim um n u m b er of days following re ceip t of an item by a R eserve Bank, w ithin w hich the d ate specified for settlem en t of th e item m ust fall for a R eserve B ank to settle for the item b a s e d on th e specified d ate. 2.60 Originator “ O rig in ato r” m ean s a depository institution or o th er au th o rized institution, w h e th e r or n ot a m em ber of an ACH association, th a t sen d s an ACH item to a R eserve Bank. “ Depository in stitu tio n ” m ean s a depository in stitution as defined in S 19(b) of the F ed eral R eserve A ct [12 U.S.C. 461(b)]. 2.55 Item “ Item ” m eans a w riting co n tain ed in an ap p ro v ed medium th a t evidences a right to the p ay m en t of money an d th a t is se n t to this B ank for clearing a n d settlem ent u n d e r this bulletin. “ Item ” does not include: (1) a n “ item ” as defined in S 210.2 of Regulation J th a t is h an d le d u n d e r S u b p art A governing the collection of checks a n d other items; (2) an “ item ” a s d efined in S 210.26 of Regulation J th a t is h an d le d u n d e r S u b p a rt B governing w ire tra n s f e rs of funds; (3) a c re d it p ay m ent sub ject to 31 Code of F ed eral R egulations, P a rt 210, governing F ed eral re c u rrin g paym ents by m ean s o th er th a n by check; or (4) a w ire tra n s f e r of sec u ritie s by this Bank. An item is d eem ed to be the sam e item even if the m edium in w hich it is co n tain ed ch an g es during handling of the item. “ Item ” m ay include a p ren o tificatio n or notice in a c c o rd a n c e w ith p a r a g ra p h 8 or a re tu rn item, ad ju stm en t o r notice in a c c o rd a n c e w ith p a r a g ra p h s 34 or 35. 2 BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS 2.95 R eceiver’s Reserve Bank ship, w ith pro m p t notice of any change m em bership. “ R eceiv er’s R eserve B ank” m ean s the R eserve Bank office from w hich the receiv er directly or in directly receiv es a n item. 2.96 3.20 Unless oth erw ise stated , all re fe re n c e s to this Bank include our H ead Office a n d o u r El Paso, Houston, a n d San Antonio B ranches. Section 4, ORIGINATOR’S AGREEMENTS Section 3, SENDING CREDIT AND DEBIT ITEMS 4.00 Authorized originator Approved electronic media An o riginator m ay sen d a n item to us by electronic m eans u n d er a rra n g e m e n ts w ith us, or in the following ap p ro v ed media: 800 o r 1600 BPI, 9-track m agnetic tap e. The orig in ato r m ust au th e n tic a te item s se n t to us by codes or p ro c e d u re s w e p re scrib e. 3.10 Prescribed format Items m ust be in th e form at p re s c rib e d by a p p licab le ACH ru les. W e m ay h an d le a n item on the b asis of any routing n um ber or o th er designation of a re ceiv e r a p p e arin g in any form on the item w hen we receive it. W e a r e no t resp o n sib le for any delay resu ltin g from our acting on any designation of a re ceiv e r w h e th e r or not the designation is co n sisten t w ith any o th er d esig n a tion on th e item. 3.15 4.05 Limit o f agreem ent The ag reem en t, au thorizations, a n d indem nity in p a r a g r a p h 9 do not limit any o th er agreem ent, au thorization, o r indem nity, not inco n sisten t w ith p a r a g r a p h 9, m ade by an o rig in ato r to a receiver, a R eserve Bank, o r a n o th e r p arty . Certification o f originator and receiver 4.10 M em bers of a n ACH asso ciatio n desirin g to o rig in ate or receiv e item s should a r ra n g e for the asso ciatio n to certify to us in a m edium a n d for m at p re s c rib e d by us th e asso c ia tio n ’s m em b er 12-30-82 Originator’s agreem ents By sending a n item to a R eserve Bank, the originator: (a) ag re e s to comply w ith th e applicable ACH ru les a n d th a t su ch ru les shall govern the relatio n sh ip s among th e o riginator, the receiv er, a n d o th er p a rtie s in te re ste d in the item an d co v ered by the ap p licab le ACH rules; (b) au th o rizes its R eserve Bank a n d the re c e iv e r’s R eserve Bank to h an d le the item in a c co rd an ce w ith the R eserve B anks’ bulletins; (c) au th o rizes the R eserve B ank holding the o rig in a to r’s acco u n t to debit or cred it, as a p p ro p ria te , th e am ount of th e item to the o rig in a to r’s acco u n t on the settlem en t d ate; an d (d) ag re e s to indem nify e a c h R eserve Bank handling or settling for th e item for any loss or e x p en se s u sta in e d (including a tto rn e y s ’ fees a n d ex p en ses of litigation) resulting from any action tak e n by the R eserve Bank in a c c o rd a n c e w ith the R eserve B ank’s ap p licab le bulletin. An orig in ato r domiciled in th e te rrito ry of, or au th o rized by a rra n g e m e n t w ith this B ank an d m aintaining or using an ac co u n t w ith a R eserve Bank for settlem en t u n d e r a bulletin governing cre d it a n d debit item s, m ay sen d a n item to this Bank. 3.05 Prenotification An orig in ato r sh all sen d to us a p ren o tificatio n of a n item a s re q u ire d by ap p licab le ACH ru les. W e h an d le a pren o tificatio n o r o th er notice as an item, ex c ep t th a t no funds a r e tra n s fe rre d . If the re ceiv e r does not m ain tain or u se an acco u n t for settlem en t u n d e r a bulletin governing ACH items, w e r e tu r n th e pren o tificatio n to th e originator. Settlement date “ Settlem ent d a t e ” m ean s the d a te for settlem en t of an item as pro v id ed in this bulletin. 3.00 of Settlement o f account By s e n d in g a c r e d it ite m to a R e se rv e Bank, th e orig in ato r ag rees to h av e in its acco u n t on th e settlem en t d ate , a b a la n c e of actu ally a n d 3 BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS 5.05 finally collected funds sufficient to cover the am ounts of c re d it item s to be d eb ited to the ac count d uring th a t day. In addition to o th er rem edies, th e o rig in a to r’s R eserve B ank a n d the R eserve B ank holding the o rig in ato r’s acco u n t h av e a sec u rity in te re s t in the a sse ts of the originator, an d of th e ac co u n t h o ld er w hose a c count th e orig in ato r u ses for settlem en t, in the p ossession of, or h eld for the ac co u n t of, the R eserve Bank if: If ap p licab le ACH ru les for a local ACH region provide for rem ote origination by o riginators lo cated outside the local ACH region, su ch a rem ote o rig in ato r m ay sen d item s to th e R eserve Bank u sed by orig in ato rs lo ca te d in th e local ACH region, su b ject to ag reem en t by th a t R eserve Bank as p rov id ed in p a r a g ra p h 4, a n d su b ject to the ap plicable ACH ru les for tra n s a c tio n s w ithin the local ACH region. (a) th e b a la n ce in the o rig in ato r’s acco u n t at the end of the R eserve B an k ’s banking d ay on the settlem en t d a te is not sufficient to cover the am ounts d eb ited to the acco u n t during th a t day in connection w ith cre d it a n d debit items; or 5.10 Section 6, HANDLING OF ITEMS 6.00 Intraoffice transaction W e p ro c ess a n d edit ACH item s in a c c o rd a n c e w ith ap p licab le ACH rules. W e h an d le an in tra o f fice tra n s a c tio n by sending or making available an item w e receiv e to the receiv er. W e h an d le an i n t e r o f f i c e t r a n s a c t i o n a s fo llo w s : T h e o rig in a to r’s R eserve Bank sen d s an item it receives to the re c e iv e r’s R eserve Bank. The re c e iv e r’s R eserve Bank sen d s or m akes av ailab le the item it receives to the receiv er. Section 5, APPLICABLE ACH RULES ACH rules in this Federal Reserve District The following ACH ru les, as am en d ed from time to time, a re ap plicable to tra n s a c tio n s involving orig in ato rs a n d re ceiv e rs lo ca te d in this F ed eral R eserve D istrict. 6.05 (a) For tra n sa c tio n s b etw een an orig in ato r a n d receiv er, both of w hich a r e lo ca te d in the Eleventh F ed eral R eserve D istrict w h e th e r or not eith e r is a m em ber of an ACH association, the a p p licable ACH ru les a r e the O perating Rules of the N ational A utom ated C learing House A ssociation a n d the S o u th w estern A utom ated C learing House Association. Manner of sending to receiver This B ank sen d s item s to a receiv e r, o r to a lo ca tion in the sam e F ed eral R eserve te rrito ry a s th a t w h ere the re c e iv e r is lo cated at the re c e iv e r’s re quest, in the following m anner: (a) By the sam e m eans a n d to the sam e lo ca tion u sed for sending c a sh item s to the receiv er, or to oth ers, u n d er S u b p art A of R egulation J; (b) By co u rie r to a location not receiving c a s h item s, if the delivery point is on a F ed eral R eserve co u rier ro u te and, in o u r opinion, re su lts in savings through consolidation of p aym ent files; (c) By electro n ic m ean s u n d e r a rra n g e m e n ts w ith us; (d) By the re c e iv e r’s picking up the items; or (e) By mail. (b) For tra n s a c tio n s b etw een a n orig in ato r an d receiv er, only one of w h ich is lo ca te d in the ACH region d esc rib ed above, th e o th er being lo cated in an o th e r ACH region in a n o th e r F ed eral R eserve D istrict, w h e th e r or not eith e r is a m em ber of a n ACH association, the ap plicable ACH ru les a re th e O perating Rules of the N ational A utom ated C learing House A ssociation. 12-30-82 Responsibility for com pliance Except as o th erw ise pro v id ed in this bulletin, we do not h av e or assum e any responsibility for determ ining w h e th e r an o rig in ato r o r re ceiv e r com plies w ith app licab le ACH rules. (b) th e orig in ato r su sp en d s p ay m en t or is closed a t any time d uring the R eserve B ank’s banking day on the settlem en t d ate, a n d does not h av e a b a la n c e sufficient to cover the am ounts d eb ited to its acco u n t in connection w ith c red it a n d deb it items. 5.00 ACH ru les for remote origination 4 BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS d ay for the acco u n t holder w hose ac co u n t eith er th e o rigin ato r or th e re ceiv e r uses for settlem ent or for a R eserve B ank involved w ith th e tr a n s a c tion; or (c) th a t specify a settlem en t d a te e a rlie r th a n the d a te lim itation show n in the time schedule for those items. The p erso n to whom delivery is m ad e a s r e q u ested or who picks up the item s is co n sid ered to be th e re c e iv e r’s agent. 6.10 Items sent to a different Federal Reserve territory This Bank sends item s to a location in a d ifferen t F ed eral R eserve te rrito ry from th a t w h e re the re ceiv e r is lo ca te d a t the re c e iv e r’s re q u e s t a n d ex p en se w here, in our judgm ent, it is a p p ro p ria te to do so. A re ceiv e r th a t w a n ts su ch delivery should subm it a re q u e st to us. 6.15 7.10 The time sch ed u le m ade p a r t of this bulletin also show s the time c e rta in o p eratio n s a r e scheduled to occur. W e a c t in a timely m a n n e r if w e tak e p ro p e r action w ithin th e time show n in o u r time schedule. If, b e c a u se of circ u m sta n ces beyond our control, w e a re d elay ed in acting on a n item beyond ap p lica b le time limits, the time for acting is ex te n d ed for the time n e c e s s a ry to com plete th e action, if w e ex e rcise su ch diligence as th e c ir cu m stan ces re q u ire. Notification by telephone If w e ex p e ct th a t an item will not b e d eliv ered to a re ceiv e r by the d a te sch ed u led for settlem ent, we m ay notify the re ceiv e r by telephone of the in fo r m ation on the item a n d settle the item acco rd in g ly. A re ceiv e r should prom ptly advise us by telephone if it does not receive a sh ip m en t of item s by the settlem ent date. Section 8, SETTLEMENT AND AVAILABILITY OF CREDIT Section 7, TIME SCHEDULES, SETTLEMENT DATES AND EXTENSIONS OF TIME LIMITS 7.00 8.00 Cut-off and settlem ent dates 8.05 Receiver's account The R eserve Bank holding th e re c e iv e r’s acco u n t on th e settlem en t d a te c red its or d eb its the re c e iv e r’s ac co u n t in th e am ount of the item a n d d eb its o r cred its in the sam e am ount the o rig in a to r’s account, or th e acco u n t of the a p p ro p ria te R eserve Bank. 8.10 Settlement date for certain items O ur time schedule also show s th e settlem en t d ate for items: (a)that specify no settlem en t date; (b) th a t specify a d a te th a t is not a banking 12-30-82 Originator's account The R eserve Bank holding th e o rig in a to r’s a c cou n t on the settlem en t d a te deb its or c re d its the o rig in a to r’s acco u n t in the am ount of th e item, a n d cred its or d eb its in th e sam e am ount the re c e iv e r’s acco u n t, o r th e acco u n t of th e a p p ro p ria te R eserve Bank. The tim e schedule m ad e a p a r t of this bulletin show s the cut-off h o u rs for re c e ip t by u s of c red it an d d eb it item s of v ario u s classes. Items or th eir accom panying m edia should specify a settlem ent d a te th a t is w ithin the effective d a te window show n for th a t c la ss of item. If w e receive a n item a fte r a cut-off hour, w e h an d le it on o u r n ex t banking d ay u nless, in em ergency or o th er c ir cum stan ces, w e decide to h an d le it on th e day of receip t. If th e specified settlem en t d a te is la te r th a n the effective d a te window, w e will not h a n dle th e item. Non-accounting en tries, su ch as pren o tificatio n s or n otices of changes, a re h an d le d w ithout re g a rd to settlem en t d a te if any is specified. 7.05 Delay beyond time limits 5 Use o f credit given A R eserve B ank may, a t any time until its opening of b u sin ess on the banking day following the s e t tlem ent d ate , refu se to p erm it th e use of c red it given for a d eb it item for w h ich the R eserve Bank h a s not re ceiv e d a c tu ally a n d finally collected funds. A R eserve Bank th a t does not receive a c tually a n d finally collected funds in settlem en t of BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS ag reem en t w ith this Bank ex ecu ted by an orig in ato r or re ceiv e r a n d a n acco u nt holder, if any, in effect on A ugust 1, 1981, providing for s e t tlem ent of ACH item s is co n sid ered to comply w ith this p a r a g r a p h upon the origination or re ceip t by such an in stitution of item s on or afte r su ch date, unless su ch orig in ato r or re ceiv e r c e ases to be a m em ber of an ACH association. a debit item, at or b efo re the opening of b usiness on the banking day following the settlem en t date, re v e rs e s the d eb it a n d cre d it previously m ade in settlem en t of the item a n d prom ptly notifies th e o rig inato r a n d the receiv er, o r th eir R eserve Banks. 8.15 Availability o f credit C redit given by a R eserve Bank to a re ceiv e r for a c red it item is av ailab le for u se on the settlem ent d ate , su b ject to the R eserve B ank’s right to apply the funds to an obligation ow ed to it by the receiv er. Section 10, RECEIVER’S AGREEMENTS 10.00 A re c e iv e r desig n ated in a n item, by m aintaining or using a n acco u n t w ith a R eserve Bank for s e t tlem ent of c re d it an d d ebit item s a n d by accepting an item from this Bank: 8.20 Suspension or closing o f the originator or receiver A R eserve B ank does not settle for a n item a fte r it receiv es notice of the suspension or closing of the o riginator or th e receiv er. In the event of the suspension or closing of an accou n t h o ld er whose acco u nt th e o riginator o r re ceiv e r uses for se ttle m ent, settlem en t is m ade to a n o th e r acco u n t d esig n ated by the orig in ato r or receiv er. 8.25 (a) ag re e s to comply w ith app licab le ACH ru les a n d th a t su ch ru les sh all govern th e re la tionships among the o riginator, the re ceiv e r, an d other p a rtie s in te re ste d in the item a n d covered by the ap p licab le ACH rules; (b) ag rees to h an d le th e item in a c co rd a n ce w ith this bulletin; Qualification for reserves (c) au th o rizes the R eserve Bank holding the re c e iv e r’s acco un t to c red it or debit, as a p p ro p ria te , the am ount of the item to the re c e iv e r’s ac co u n t on the settlem en t date; an d (d) ag re e s to indem nify e a c h R eserve Bank handling or settling for the item for any loss or e x pen se s u stain ed (including a tto rn e y s ’ fees an d ex pen se of litigation) resulting from a b re a c h of the foregoing ag reem en ts or from any action tak e n by the R eserve Bank holding the re c e iv e r’s acco u n t in a c c o rd a n c e w ith the foregoing authorization. S ubject to p a r a g ra p h s 24 an d 25, c re d it given by us a t once qualifies as re se rv e for p u rp o ses of Regulation D of the B oard of G overnors of the F ed eral R eserve System. Section 9, SETTLEMENT AGREEMENTS P rio r to originating or receiving items, an o rig inato r or receiv er, a n d an acco u n t holder w hose ac co u n t the institution d e sire s to use for settlem en t of the items, m ust e x e cu te a settlem ent a g reem e n t w ith a Reserve Bank th a t m ain tain s an acco u nt for th e institution or ac co u n t holder. The settlem en t ag reem e n t m ust provide th a t in con sid era tio n of the clearing a n d settlem en t of item s by the R eserve Bank for the orig in ato r or receiv er, a n d for oth er o riginators a n d receiv ers, the institution a n d acco u n t h older ag ree to the a p plicable R eserve Bank bulletins governing ACH item s, a n d to ap p licab le ACH ru les, e a c h as am en d ed from time to time, for the b en efit of all p a rtie s in te re s te d in the items. A settlem ent 12-30-82 R eceiver’s agreem ents 10.05 Limit o f agreement The ag reem en ts, authorization, a n d indem nity in Section 10.00 do not limit any o th er agreem ent, autho rizatio n , or indem nity, not inco n sisten t with Section 10.00, m ade by a re ceiv e r to an originator, a R eserve Bank, or an o th e r p arty . Section 11, REVOCATION OF ITEMS 11.00 Right to revoke No o riginator or p rio r p a rty h a s a right to revoke 6 BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS an item a fte r it h a s b ee n receiv ed by a R eserve Bank, ex c ep t as pro v id ed for in ap plicable ACH rules. 11.05 12.15 An o rig in ato r may d ispute, in a c c o rd a n c e w ith app licab le ACH rules, th e p ro p rie ty of a re tu rn item by furnishing its R eserve Bank w ith th e item a n d a claim form. The o rig in a to r’s R eserve Bank re v e rs e s th e settlem ent for the r e tu r n item a n d sen d s the item a n d form to th e re ceiv e r or, in an interoffice tra n sa c tio n , to th e re c e iv e r’s R eserve Bank, w h ich re v e rs e s th e settlem en t for the re tu r n item a n d sen d s the item a n d the form to the r e c e i v e r . T h e r e c e i v e r m ay d is p u te th e o rig in a to r’s claim by furnishing its R eserve Bank w ith th e o rig in ato r’s claim form a n d o th er docum ents in a c c o rd a n c e w ith ap p licab le ACH ru les. The re c e iv e r’s R eserve B ank re in s ta te s the settlem en t for th e r e tu r n item a n d sen d s th e claim form a n d o th er docum ents to th e o rig in ato r or, in an interoffice tra n sa c tio n , to the o rig in a to r’s R eserve Bank, w hich re in s ta te s the settlem en t for the re tu r n item a n d sen d s the docum ents to the orig in ato r. A R eserve Bank h a s no responsiblity for determ ining w h e th e r a n orig in ato r or re ceiv e r com plies w ith ap p licab le ACH ru les governing this p ro c ed u re . N onsufficient funds W e may, on our own initiative, c e a s e acting on or settling for a cre d it item if th e o rig in a to r’s R eserve Bank judges th a t th e re m ay n o t be suffi cient funds in the o rig in a to r’s acco u n t on the set tlem ent d a te to cover th e item. W e prom ptly notify the originator a n d a re ceiv e r to w hich w e h av e sen t an item, or th e ir R eserve Banks, of n onpay m ent of th e item. 11.10 Duplicate or erroneous batch W e m ay in itiate a re v ersin g b a tc h of item s in a c co rd an ce w ith ap p licab le ACH ru les, if w e discover th a t w e se n t a d u p licate or erro n eo u s b a tc h of items. W e notify the orig in ato r a n d its R eserve Bank accordingly. Section 12, RETURN OF ITEMS AND FUNDS 12.00 Return o f items A re c e iv e r h a s the right to re v e rs a l of c red its an d d eb its m ad e u n d e r sections 8.00 or 8.05 of this bulletin by re tu rn in g th e item to its R eserve Bank in a c c o rd a n c e w ith ap p lica b le ACH rules. The re c e iv e r’s R eserve Bank sen d s a re tu rn e d item or ad ju stm en t to the o riginator, or, in an interoffice tra n s a c tio n , to th e o rig in ato r th ro u g h the o rig in a to r’s local R eserve Bank. The R eserve B anks holding the o rig in ato r’s a n d re c e iv e r’s ac counts re v e rse th e debit a n d c red it previously m ade in settlem ent of the item. 12.05 Section 13, ADVICES TO ACCOUNT HOLDERS W e provide, in a statem en t, advices of c red it an d deb it to acco u nt h o ld ers for item s for w hich they hav e ag re e d to settle. A dvices of c red it in d icate th a t cre d it h a s b een given, su b ject to the provi sions of this bulletin. Unless our ac co u n t holder sen d s to us pro m p t w ritte n objection to a n advice of debit, it is deem ed to ap p ro v e th e d eb it on its ow n b eh a lf a n d on b eh a lf of a n o rig in ato r or re c e iv e r using the ac co u n t for settlem ent. Notification o f change A re c e iv e r m ay sen d a rejectio n of pren o tificatio n or notification of change to its R eserve B ank in a c co rd a n c e w ith ap plicable ACH rules. R eserve Banks h an d le th ese notices or o th er notices as item s, ex c ep t th a t no funds a r e tra n s fe rre d . Section 14, RECORDS 14.00 Retention o f records O rig in ato rs a n d re ceiv e rs should keep re c o rd s th a t p erm it them to resolve questions th a t a ris e concerning th e h andling of item s. W e do not keep any copies of item s h a n d le d a fte r one y e a r from th e settlem en t d ate, a n d no claim ex c ep t one b a s e d on alleged fra u d by this Bank, m ay b e m ad e 12.10 Responsibility for tim eliness W e do n o t h av e or assum e any responsibility for determ ining w h e th e r th e action tak e n by a re ceiv e r w as timely. 12-30-82 Disputed Returns 7 BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS if any, su ffe red by th e p a rty a s a p ro x im ate conse quence. ag a in st us a fte r th a t time. In addition, a fte r 60 banking days, w e d estro y tra n s a c tio n d a ta on in dividuals co n tain ed in our re c o rd s of items handled. 14.05 16.10 A R eserve Bank h andling or settling for a n item a g re e s to idemnify an o th e r R eserve B ank th a t h an d les or settles for a n item for any loss or ex p en se s u sta in e d (including a tto rn e y s ’ fees a n d e x p en ses of litigation) as a re su lt of th e form er R eserve B ank’s fa ilu re to ex e rcise o rd in ary c a re or to a c t in good faith. Disclosure o f records W e disclose our re c o rd s of any item han d led , if th e p erso n req u estin g the inform ation is a p a rty to th e tra n sa c tio n . O therw ise, we do not disclose re c o rd s of item s h an d le d e x c ep t in resp o n se to valid g ra n d jury su b p o en as or co u rt o rd ers. 16.15 Section 15, PRICING Limitation on claims No claim m ay b e m ad e by any p erso n ag a in st a R eserve Bank for loss resulting from the R eserve B ank's handling of or settling for an item a f te r one y ea r from the settlem ent d a te of the item. O ur fee schedule show s the c h a rg es im posed for clearin g a n d settlem ent of ACH item s. W e may m ake th e ch arg e as show n in th e sch edu le to the o rig in a to r’s acco u n t or th e re c e iv e r’s acco u n t or to a co rresp o n d e n t acco u n t desig n ated by the o rig in ato r or receiv er, u n less th e orig in ato r or re ceiv e r is a m em ber of an ACH association, the asso ciatio n h as re q u e s te d th a t settlem en t of fees be m ade th ro u g h it, a n d the originator or re ceiv e r h a s not re q u e s te d settlem en t of fees be m ad e otherw ise. 16.20 Recovery by Reserve Bank If an action or p ro ceed in g is bro u g h t ag a in st a R eserve Bank th a t h a s h an d le d or settled for an item, b a se d on: (a) the alleged b re a c h of, or the alleged failu re to have the au th o rity to make, any of the w a rra n tie s , au thorizations, a n d ag reem en ts r e fe rre d to in Sections 4.00, 10.00, a n d 16.10 of this bulletin or the alleged b re a c h of ap p licab le ACH ru les, by the o riginator, the receiv er, or an o th e r R eserve Bank; or Section 16, RESERVE BANK LIABILITY 16.00 Reserve Bank indemnity Limitations on liability This Bank is responsible or liable only to an o riginator, a receiv er, or an o th e r R eserve Bank, a n d only for its own lack of good faith o r failu re to e x e rcise o rd in a ry c a re . This Bank does not a c t as the agent or su b ag en t of an o th e r ban k or p erso n a n d is not liable for th e insolvency, neglect, m isconduct, m istake, or d efau lt of an o th e r bank or p erson. This Bank does n ot m ake any w a rra n ty w ith re s p e c t to an item it h an d le s o r settles for u n d e r this bulletin. (b) any action by the R eserve Bank in a c c o r d a n c e w ith its bulletin, the R eserve Bank may, upon the en try of a final judgm ent or d ecree, reco v er from the o riginator, the receiv er, or the o th er R eserve Bank, as th e ca se may be, any am ount the R eserve Bank is re q u ire d to p ay u n d er the judgm ent or d ec ree , together w ith in te re st, as well as the am ount of a tto rn e y s ’ fees a n d o th er ex p e n ses of litigation in cu rred . 16.05 16.25 M easure o f damages The m ea su re of dam age for o u r failu re to ex ercise ord in ary c a re w ith re s p e c t to a n item is the am ount of the item re d u c e d by a n am ount th a t could not h av e b een realized by the u se of o r d in ary c a re . W h e re th e re is a lack of good faith, the m ea su re of d am ag es includes o th er d am ages, 12-30-82 Methods o f recovery The R eserve Bank m ay re co v er the am ount s ta te d in Section 15.20 of this bulletin by charging the o rig in ato r’s or re c e iv e r’s acco u n t (or if th e item w a s receiv ed from, sen t to, or settled thro u g h an o th e r R eserve Bank, by charging th e other R eserve Bank th rou g h the In ter-D istrict Settle- 8 BULLETIN 11 FEDERAL RESERVEBANK OF DALLAS m ent Fund), if (a) the R eserve Bank h a s m ade seaso n ab le w ritte n d em an d on th e originator, receiv e r, or o ther R eserve B ank to assum e defense of the a c tion or proceeding; an d (b) no o ther a rra n g e m e n t for p ay m en t ac c e p ta b le to the R eserve Bank h a s b ee n m ade. A R eserve Bank th a t h a s b een c h a rg e d throu g h th e Inter-D istrict S ettlem ent Fund m ay reco v er from the o riginator or re ceiv e r in th e m a n n e r an d u n d e r th e circ u m sta n ces s e t fo rth in this p a ra g ra p h . A R eserve B ank’s fa ilu re to avail itself of th e rem edy pro v id ed in this p a r a g ra p h does not p reju d ice its en fo rcem en t in any o th er m an n e r of the indem nity ag reem en ts re fe r re d to in Sections 4.00, 10.00, a n d 16.10. Section 17, RIGHT TO AMEND W e re se rv e the rig h t to am en d this bulletin a t any time. 12-30-82 9 BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS A ppendix A TIM E SCHEDULE AUTOM ATED CLEARING HOUSE FILES Cut-Off Hours This tim e sch ed u le show s th e cut-off h o u rs for re c e ip t by us of ACH fo rm atted files containing debit and/or c re d it item s of v ario u s classes. ____________________CLOSING HOURS_____________________ Day Cycle Night Cycle (Debits & Credits) (Restricted Debits)* Monday Through Friday Sunday Through Thursday INTER- & INTRA-REGIONAL Item s for any p a rtic ip a tin g institution. Allows time for re m a k es of b a d files. 2:00 A.M. 5:00 P.M. Item s for any p a rtic ip a tin g financial institution. Does not allow time for rem ak es of b a d files. 5:30 A.M. 8:30 P.M. Item s for fin an cial institutions having routing symbols 1110, 1111, 1112, 1113, 1119, 1120, 1122, 1123, 1130, 1131, 1140, 1149, 1163, 3110, 3111, 3112, 3113, 3119, 3120, 3122, 3123, 3130, 3131, 3140, 3149, 3163. Allows time for rem ak es of b a d files. 7:30 A.M. 7:30 P.M. Item s for fin an cial in stitutions having routing symbols 1110, 1111, 1112, 1113, 1119, 1120, 1122, 1123, 1130, 1131, 1140, 1149, 1163, 3110, 3111, 3112, 3113, 3119, 3120, 3122, 3123, 3130, 3131, 3140, 3149, 3163. Does not allow tim e for rem ak es of b a d files. 11:00 A.M. 11:00 P.M. INTRA-REGIONAL *P rim arily u sed for c a s h co n c en tra tio n d eb its a n d o th er tim e-critical ap p licatio n s as ap p ro v ed by th e F ed eral R eserve from time to time. C o rp o rate c a s h co n cen tra tio n d ebits a re o rig in ated by or for a co r p o ratio n or governm ent entity typically to collect funds from the p ro c e e d s of the d a y ’s bu sin ess deposited a t acco u n ts a t receiving fin an cial institutions by th e c o rp o ra tio n ’s or g overnm ent e n tity ’s b ra n c h e s , fra n chises, or agents. T h ese p ay m en ts do no t include th e collection of bill p ay m en ts o r o th er c o rp o ra te obliga tions n o r any type of co n su m er paym ents. 12-30-82 A-1 BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS A ppendix A (Continued) TIM E SCHEDULE AUTOM ATED CLEARING HOUSE FILES E ffective Date W indows Item s should specify a settlem en t d a te w ithin th e following effective d a te w indow s, com puted from the banking d ay of re c e ip t a n d pro cessin g by us: Class E ffective Date W indow C redit Item s Debit Items One (1) to Two (2) Days One (1) Day Only Item s w ith a n effective en try d a te g re a te r th a n th a t allow ed by th e effective d a te window s will be re tu r n e d to th e originator. Settlement Dates If a settlem en t d a te is not specified, or if a n item specifies a settlem en t d a te eq u a l to or e a rlie r th a n the banking d ay of re c e ip t a n d p ro cessin g by us, the settlem en t d a te is the banking day following re c e ip t by us. If a n item specifies a settlem en t d a te th a t is not a banking day for th e acco u n t holder w hose acco u n t e ith e r th e orig in ato r or th e re ceiv e r u ses for settlem en t, o r for a R eserve Bank involved in th e tra n sa c tio n , settlem en t is effected, w ith re s p e c t to th a t p a rty , on the n e x t d ay th a t is a banking day for both the a c count h o ld er a n d th e R eserve Bank m aintaining its account. Delivery Schedule This delivery sch ed u le show s th e tim e fram e for the o p eratio n of the in terreg io n al ex ch an g e a n d the tim es o u tp u t files will b e av ailab le for pickup or delivery to th e receiv er. Day Cycle Monday Through Friday Night Cycle Sunday Through Friday 7:00 A.M .— 11:00 A.M. CST 10:00 P.M.— 12:00 M idnight CST O utput files av ailab le for pickup by local re c e iv e rs 7:00 P.M. CST 6:00 A.M. CST O utput files av ailab le for delivery to local re ceiv e rs 7:00 P.M. CST 6:00 A.M. CST In terreg io n a l E xchange 12-30-82 A-2 BULLETIN 11 FEDERAL RESERVE BANK OF DALLAS A ppendix B FEE SCHEDULE AUTOM ATED CLEARING HOUSE ITEM S This Bank h a s e stab lish ed th e following schedule of c h a rg e s for a u to m ate d clearin g house serv ices pro v id ed by us. DAY CYCLE New York In tra - ACH In tra - ACH D ebitsd O riginated Credits R eceived Debits O rig in ated C redits R eceived 2.0 Cents 4.0 Cents N ew York In te r - ACH In te r - ACH Debits O rig in ated C redit R eceived 1.0 Cents 2.0 Cents Debits O rig in ated C redits R eceived 3.5 Cents 5.5 Cents 2.5 Cents 3.5 Cents NIGHT CYCLE N ew Y ork In tra - a n d In ter -A C H In tra - a n d In te r - ACH Debits O rig in ated 12-30-82 5.0 Cents Debits O rig in ated B-1 5.0 Cents
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