Lots of financial institutions throughout the United States clear check images through the Federal Reserve Bank. Clearing check images are done by agreement, so your financial institution would need to have an agreement with the Federal Reserve Bank to clear through them. If your institution is clearing through the Federal Reserve Bank, then your institution is clearing under the Federal Reserve’s Operating Circular 3 (OC3). But did you know, there are institutions that clear under a different set of Rules, such as the ECCHO Rules? What are ECCHO Rules, you might ask? Well, they are clearinghouse rules which build upon existing check law such as UCC and Regulation CC.
It’s important for a financial institution to know which set of Rules they clear under as this is how they will know how to send imaged items on the forward side, return check images, determine settlement, handle adjustments, etc. There are similarities and differences between these two sets of Rules.
Join me on June 22, 2021 at 10 AM CT for our OC3 vs Private Sector Rules webinar. Together will cover the similarities and differences between these two rule sets, and more importantly, we will work through some operational situations that may arise at your institution and determine which rule set applies and how to handle the situation. Also, for those NCP’s looking for continuing education credits, you can purchase this webinar solely or purchase it as part of the 2021 NCP Continuing Education Package.