CUNA Regulatory Comment Call


April 24, 2000

Rules for Federal use of Automated Clearing House

(NOT A MAJOR RULE)

EXECUTIVE SUMMARY

Treasury would adopt the following NACHA changes to its regulations.

Treasury will NOT adopt the following NACHA amendments

INTERIM RULE BACKGROUND

On April 9, 1999, Treasury published a final rule in the Federal Register that adopted the ACH rules published in NACHA's 1999 rule book with certain exceptions. That rule provides that any amendment to the ACH Rules, as published in the NACHA 1999 Rule Book that takes effect after September 17, 1999 will not apply unless it is published again in the Federal Register. Treasury is now publishing these rules, as well as new amendments to the rules promulgated by NACHA later in 1999. Treasury's interim rule would adopt most, but not all of those changes, and it provides notice for comment. All these rule changes are discussed on CUNA's website under the NACHA final rules chart, with the exception of the ACH Operation definition.

This definition of ACH Operator is particularly important because the Federal Reserve may use this definition to define who is an ACH Operator to grant them preferential deadlines in ACH processing and to grant them better prices under ACH pricing models that may be proposed within the next few months. The revised ACH Operator definition would include the following:

The revised definition requires all ACH Operators, except Federal Reserve Banks, to execute an annual agreement with NACHA, in which the ACH Operator agrees to perform the specific functions and comply with the requirements for ACH Operators as defined under the NACHA Operating Rules. A Federal Reserve Bank would be considered to be an ACH Operator if it performs the specific functions of an ACH Operator as expressed in the definition.

QUESTIONS REGARDING THE CURRENT SYSTEM

Eric Richard • General Counsel • (202) 508-6742 • erichard@cuna.com
Mary Mitchell Dunn • SVP & Associate General Counsel • (202) 508-6736 • mdunn@cuna.com
Jeffrey Bloch • Assistant General Counsel • (202) 508-6732 • jbloch@cuna.com
Catherine Orr • Senior Regulatory Counsel • (202) 508-6743 • corr@cuna.com