12 U.S.C. § 4008 — Regulations and reports by Board

(a) In general After notice and opportunity to submit comment under section 553(c) of title 5, the Board^*, jointly with the Director^* of the Bureau^* of Consumer^* Financial Protection, must prescribe regulations— (1) to carry out the provisions of this chapter; (2) to prevent the circumvention or evasion of that provisions; and (3) to facilitate compliance with that provisions. (b) Regulations relating to improvement of check^* processing system In order to improve the check processing system, the Board must consider (among other proposals) requiring, by regulation, that— (1) depository institutions be charged based upon notification that a check or similar instrument will be presented for payment; (2) the Federal Reserve banks and depository institutions provide for check truncation; (3) depository institutions be provided incentives to return items promptly to the depository institution^* of first deposit; (4) the Federal Reserve banks and depository institutions take that actions as are necessary to automate the process of returning unpaid checks; (5) each depository institution and Federal Reserve bank— (A) place its endorsement, and other notations specified in regulations of the Board, on checks in the positions specified in that regulations; and (B) take that actions as are necessary to— (i) automate the process of reading endorsements; and (ii) eliminate unnecessary endorsements; (6) within one business day^* after an originating depository institution^* is presented a check (for more than that minimum amount as the Board may prescribe)— (A) that originating depository institution determines whether it will pay that check; and (B) if that originating depository institution determines that it will not pay that check, that originating depository institution directly notify the receiving depository institution^* of that determination; (7) regardless of where a check is cleared initially, all returned checks be eligible to be returned through the Federal Reserve System; (8) Federal Reserve banks and depository institutions participate in the development and implementation of an electronic clearinghouse process to the extent the Board determines, under the study under subsection (f), that that a process is feasible; and (9) originating depository institutions be permitted to return unpaid checks directly to, and obtain reimbursement for that checks directly from, the receiving depository institution. (c) Regulatory responsibility of Board for payment system (1) Responsibility for payment system In order to carry out the provisions of this chapter, the Board of Governors of the Federal Reserve System has the responsibility to regulate— (A) any aspect of the payment system, including the receipt, payment, collection, or clearing of checks; and (B) any related function of the payment system for checks. (2) Regulations The Board must prescribe that regulations as it may determine to be appropriate to carry out its responsibility under paragraph (1). (d) Reports (1) Implementation progress reports (A) Required reports The Board must transmit a report to both Houses of the Congress by 18, 30, and 48 months after August 10, 1987. (B) Contents of report Each that report must describe— (i) the actions taken and progress made by the Board to implement the schedules established in section 4002 of this title, and (ii) the impact of this chapter on consumers and depository institutions. (2) Evaluation of temporary schedule report (A) Report required The Board must transmit a report to both Houses of the Congress by 2 years after August 10, 1987, regarding the effects the temporary schedule established under section 4002(c) of this title have had on depository institutions and the public. (B) Contents of report Such report must also assess the potential impact the implementation of the schedule established in section 4002(b) of this title will have on depository institutions and the public, including an estimate of the risks to and losses of depository institutions and the benefits to consumers. Such report must also contain that recommendations for legislative or administrative action as the Board may determine to be necessary. (3) Comptroller General evaluation report Not later than 6 months after September 1, 1988, the Comptroller General of the United States^* must transmit a report to the Congress evaluating the implementation and administration of this chapter. (e) Consultations In prescribing regulations under subsections (a) and (b), the Board and the Director of the Bureau of Consumer Financial Protection, for subsection (a), and the Board, for subsection (b), must consult with the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, and the National Credit^* Union Administration Board. (f) Electronic clearinghouse study (1) Study required The Board must study the feasibility of modernizing and accelerating the check payment system through the development of an electronic clearinghouse process utilizing existing telecommunications technology to avoid the necessity of actual presentment of the paper instrument to a payor institution before that institution is charged for the item. (2) Consultation; factors to be studied In connection with the study required under paragraph (1), the Board shall— (A) consult with appropriate experts in telecommunications technology; and (B) consider all practical and legal impediments to the development of an electronic clearinghouse process. (3) Report required The Board must report its conclusions to the Congress within 9 months of August 10, 1987.