CUNA Regulatory Comment Call

April 25, 2002

ACH Rules for Payments to Federal Agencies Modify Affidavits, Validate E-Sign



The Department of Treasury (Treasury) has issued an interim final rule that governs the use of the automated clearing house (ACH) system by federal agencies. This interim final rule covers four topics: 1) affidavit and electronic communication issues; 2) reintiation; 3) electronic authorization; and 4) electronic terminals. Treasury is revising this rule to incorporate recent changes made to the NACHA Operating Rules (Rules) by NACHA- The Electronic Payments Association. The interim final rule is effective on May 13, 2002 and comments on this interim rule are due to Treasury by June 10, 2002. The interim rule will make the following changes:

If you have questions, please contact Associate General Counsel Mary Dunn by e-mail at or by telephone at (202) 638-5777 or contact Assistant General Counsel Michelle Profit by e-mail at or by telephone at (202) 638-5777. You may obtain a copy of this interim rule by clicking here.


  1. Do you agree with the recommendation to limit to two (2) the number of times that a returned ACH entry may be reinitiated after the return of the original entry? This would equate to three total presentments.

  2. Do you agree that Treasury should adopt its rule to allow for the electronic usage of records, signatures, affidavits and authorizations consistent with the E-Sign Act and Regulation E?

  3. Do you agree with the requirement that an RDFI should include the city and state of the POP terminal on their member’s monthly statement? Please explain.

  4. Have you experienced repetitive returns in the past from a federal agency? How did that affect your credit union? Would this rule change help alleviate that situation?

  5. Do you have any other comments?

Eric Richard • General Counsel • (202) 508-6742 •
Mary Mitchell Dunn • SVP & Associate General Counsel • (202) 508-6736 •
Jeffrey Bloch • Assistant General Counsel • (202) 508-6732 •
Catherine Orr • Senior Regulatory Counsel • (202) 508-6743 •