WASHINGTON-The Federal Reserve Board began developing the implementing regulations of the Check Clearing for the 21st Century Act (Check 21) less than a week after it was signed into law. As the proposed regulation is being drafted, CUNA has been invited by the Fed to provide input on the language. The group also plans to comment during the official public comment period. The regulation will include model disclosure language to use in notifying consumers of their rights under the law, according to a statement from the Fed. The proposed rule is expected to be out before the end of the year with a 60-day comment period, according to CUNA Assistant General Counsel Michelle Profit. The law had a one-year effective date, making it Oct. 28, 2004. Check 21 was drafted to foster innovation in the payment system and enhancing efficiency. The law does not require financial institutions to send or accept electronic checks.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.