The Federal Reserve Board (“Board”) issued a final rule amending Subpart C of Regulation CC relative to the liability provisions for check disputes, specifically disputes regarding whether a check has been altered or issued with an unauthorized signature and the original check is not available. The final rule creates a presumption that a substitute or electronic check in question was altered or issued with an unauthorized signature. This presumption is only applicable to the liability between financial institutions. The rule is a part of the Board’s ongoing effort to update Regulation CC due to the shift in the check collection system from a paper-based system to an electronic system.
This rule is effective on January 1, 2019.