---
kind: "section"
citation: "12 U.S.C. § 4008"
title: "12"
title_heading: "Banks and Banking"
number: "4008"
heading: "Regulations and reports by Board"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4008"
units:
  - "Chapter 41 — Expedited Funds Availability"
---

# §4008. Regulations and reports by Board

- (a) **In general—** After notice and opportunity to submit comment in accordance with [section 553(c) of title 5](/usc/5/553.md?p=c), the [Board](/usc/12/4001.md?p=2), jointly with the [Director](/usc/12/5481.md?p=10) of the [Bureau](/usc/12/5481.md?p=2) of [Consumer](/usc/12/5481.md?p=4) Financial Protection, shall prescribe regulations—
  - (1) to carry out the provisions of this chapter;
  - (2) to prevent the circumvention or evasion of such provisions; and
  - (3) to facilitate compliance with such provisions.
- (b) **Regulations relating to improvement of check processing system—** In order to improve the [check](/usc/12/4001.md?p=7) processing system, the [Board](/usc/12/4001.md?p=2) shall consider (among other proposals) requiring, by regulation, that—
  - (1) [depository institutions](/usc/12/4001.md?p=12) be charged based upon notification that a [check](/usc/12/4001.md?p=7) or similar instrument will be presented for payment;
  - (2) the Federal Reserve banks and [depository institutions](/usc/12/4001.md?p=12) provide for [check](/usc/12/4001.md?p=7) truncation;
  - (3) [depository institutions](/usc/12/4001.md?p=12) be provided incentives to return items promptly to the [depository institution](/usc/12/4001.md?p=12) of first deposit;
  - (4) the Federal Reserve banks and [depository institutions](/usc/12/4001.md?p=12) take such actions as are necessary to automate the process of returning unpaid [checks](/usc/12/4001.md?p=7);
  - (5) each [depository institution](/usc/12/4001.md?p=12) and Federal Reserve bank—
    - (A) place its endorsement, and other notations specified in regulations of the [Board](/usc/12/4001.md?p=2), on [checks](/usc/12/4001.md?p=7) in the positions specified in such regulations; and
    - (B) take such actions as are necessary to—
      - (i) automate the process of reading endorsements; and
      - (ii) eliminate unnecessary endorsements;
  - (6) within one [business day](/usc/12/4001.md?p=3) after an [originating depository institution](/usc/12/4001.md?p=17) is presented a [check](/usc/12/4001.md?p=7) (for more than such minimum amount as the [Board](/usc/12/4001.md?p=2) may prescribe)—
    - (A) such [originating depository institution](/usc/12/4001.md?p=17) determines whether it will pay such [check](/usc/12/4001.md?p=7); and
    - (B) if such [originating depository institution](/usc/12/4001.md?p=17) determines that it will not pay such [check](/usc/12/4001.md?p=7), such [originating depository institution](/usc/12/4001.md?p=17) directly notify the [receiving depository institution](/usc/12/4001.md?p=20) of such determination;
  - (7) regardless of where a [check](/usc/12/4001.md?p=7) is cleared initially, all returned [checks](/usc/12/4001.md?p=7) be eligible to be returned through the Federal Reserve System;
  - (8) Federal Reserve banks and [depository institutions](/usc/12/4001.md?p=12) participate in the development and implementation of an electronic clearinghouse process to the extent the [Board](/usc/12/4001.md?p=2) determines, pursuant to the study under [subsection (f)](#f), that such a process is feasible; and
  - (9) [originating depository institutions](/usc/12/4001.md?p=17) be permitted to return unpaid [checks](/usc/12/4001.md?p=7) directly to, and obtain reimbursement for such [checks](/usc/12/4001.md?p=7) directly from, the [receiving depository institution](/usc/12/4001.md?p=20).
- (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](/usc/12/4001.md?p=2) of Governors of the Federal Reserve System shall have the responsibility to regulate—
    - (A) any aspect of the payment system, including the receipt, payment, collection, or clearing of [checks](/usc/12/4001.md?p=7); and
    - (B) any related function of the payment system with respect to [checks](/usc/12/4001.md?p=7).
  - (2) **Regulations—** The [Board](/usc/12/4001.md?p=2) shall prescribe such regulations as it may determine to be appropriate to carry out its responsibility under [paragraph (1)](#c-1).
- (d) **Reports—**
  - (1) **Implementation progress reports—**
    - (A) **Required reports—** The [Board](/usc/12/4001.md?p=2) shall transmit a report to both Houses of the Congress not later than 18, 30, and 48 months after August 10, 1987.
    - (B) **Contents of report—** Each such report shall describe—
      - (i) the actions taken and progress made by the [Board](/usc/12/4001.md?p=2) to implement the schedules established in [section 4002 of this title](/usc/12/4002.md), and
      - (ii) the impact of this chapter on [consumers](/usc/12/5481.md?p=4) and [depository institutions](/usc/12/4001.md?p=12).
  - (2) **Evaluation of temporary schedule report—**
    - (A) **Report required—** The [Board](/usc/12/4001.md?p=2) shall transmit a report to both Houses of the Congress not later than 2 years after August 10, 1987, regarding the effects the temporary schedule established under [section 4002(c) of this title](/usc/12/4002.md?p=c) have had on [depository institutions](/usc/12/4001.md?p=12) and the public.
    - (B) **Contents of report—** Such report shall also assess the potential impact the implementation of the schedule established in [section 4002(b) of this title](/usc/12/4002.md?p=b) will have on [depository institutions](/usc/12/4001.md?p=12) and the public, including an estimate of the risks to and losses of [depository institutions](/usc/12/4001.md?p=12) and the benefits to [consumers](/usc/12/5481.md?p=4). Such report shall also contain such recommendations for legislative or administrative action as the [Board](/usc/12/4001.md?p=2) 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](/usc/12/4001.md?p=23) shall transmit a report to the Congress evaluating the implementation and administration of this chapter.
- (e) **Consultations—** In prescribing regulations under subsections [(a)](#a) and [(b)](#b), the [Board](/usc/12/4001.md?p=2) and the [Director](/usc/12/5481.md?p=10) of the [Bureau](/usc/12/5481.md?p=2) of [Consumer](/usc/12/5481.md?p=4) Financial Protection, in the case of [subsection (a)](#a), and the [Board](/usc/12/4001.md?p=2), in the case of [subsection (b)](#b), shall consult with the Comptroller of the Currency, the [Board](/usc/12/4001.md?p=2) of [Directors](/usc/12/5481.md?p=10) of the Federal Deposit Insurance Corporation, and the National [Credit](/usc/12/5481.md?p=7) Union Administration [Board](/usc/12/4001.md?p=2).
- (f) **Electronic clearinghouse study—**
  - (1) **Study required—** The [Board](/usc/12/4001.md?p=2) shall study the feasibility of modernizing and accelerating the [check](/usc/12/4001.md?p=7) 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 such institution is charged for the item.
  - (2) **Consultation; factors to be studied—** In connection with the study required under [paragraph (1)](#f-1), the [Board](/usc/12/4001.md?p=2) 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](/usc/12/4001.md?p=2) shall report its conclusions to the Congress within 9 months of August 10, 1987.

## Source credit

(Pub. L. 100–86, title VI, § 609, Aug. 10, 1987, 101 Stat. 647; Pub. L. 111–203, title X, § 1086(d), July 21, 2010, 124 Stat. 2086.)

## Notes

### Editorial Notes

### Codification

In subsec. (d)(3), “September 1, 1988” substituted for “section 603(b) takes effect” on authority of section 613(b) of Pub. L. 100–86, set out as an Effective Date note under section 4001 of this title.

### Amendments

2010—Subsec. (a). Pub. L. 111–203, § 1086(d)(1), inserted “, jointly with the Director of the Bureau of Consumer Financial Protection,” after “Board” in introductory provisions.

Subsec. (e). Pub. L. 111–203, § 1086(d)(2), added subsec. (e) and struck out former subsec. (e). Prior to amendment, text read as follows: “In prescribing regulations under subsections (a) and (b) of this section, the Board shall consult with the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, the Federal Home Loan Bank Board, and the National Credit Union Administration Board.”

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

### Exceptions in Areas Where Major Disaster Exists

Pub. L. 105–18, title V, § 50002, June 12, 1997, 111 Stat. 211, provided that: Truth in Lending Act.—During the 240-day period beginning on the date of enactment of this Act [June 12, 1997], the Board of Governors of the Federal Reserve System may make exceptions to the Truth in Lending Act [15 U.S.C. 1601 et seq.] for transactions within an area in which the President, pursuant to section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C. 5170], has determined, on or after February 28, 1997, that a major disaster exists, or within an area determined to be eligible for disaster relief under other Federal law by reason of damage related to the 1997 flooding of the Red River of the North, the Minnesota River, and the tributaries of such rivers, if the Board determines that the exception can reasonably be expected to alleviate hardships to the public resulting from such disaster that outweigh possible adverse effects. Expedited Funds Availability Act.—During the 240-day period beginning on the date of enactment of this Act [June 12, 1997], the Board of Governors of the Federal Reserve System may make exceptions to the Expedited Funds Availability Act [12 U.S.C. 4001 et seq.] for depository institution offices located within any area referred to in subsection (a) of this section if the Board determines that the exception can reasonably be expected to alleviate hardships to the public resulting from such disaster that outweigh possible adverse effects. Time Limit on Exceptions.—Any exception made under this section shall expire not later than September 1, 1998. Publication Required.—The Board of Governors of the Federal Reserve System shall publish in the Federal Register a statement that— describes any exception made under this section; and explains how the exception can reasonably be expected to produce benefits to the public that outweigh possible adverse effects.”

Similar provisions were contained in the following prior acts:

Pub. L. 103–76, § 2, Aug. 12, 1993, 107 Stat. 752.

Pub. L. 102–485, § 3, Oct. 23, 1992, 106 Stat. 2772.