CUNA Regulatory Comment Call

June 14, 2001

Three Time Limit on Reinitiation of ACH Item


NACHA - The Electronic Payments Association requests comments on a change that would limit the number of times that an automated clearing house (ACH) item may be presented after it has been returned. The proposed limit is a maximum of three times total for all presentments. Certain ACH items, including the RCK and PPD Accounts Receivable entries, already limit the number of times the item may be presented to three. This ruling would extend that limit to all standard entry class codes. This rule would become effective on March 22, 2002.

Credit unions may help CUNA prepare comments representative of the credit union movement. Please submit your comments to CUNA by July 9th so we can meet NACHA's deadline of July 18. Please feel free to fax your responses to CUNA at 202-371-8240; e-mail them to Associate General Counsel Mary Dunn at or to Assistant General Counsel Michelle Profit at or mail them to Mary Dunn or Michelle Profit in c/o CUNA’s Regulatory Advocacy Department, 805 15th Street, NW, Suite 300, Washington, DC 20005.

Credit unions may also respond directly to NACHA by completing NACHA's comment form on the proposed rule as well. For a copy of the request for comment you may click on This survey and other credit union comments can be submitted directly to NACHA c/o William Colbert, Network Services Associate, NACHA, 13665 Dulles Technology Drive, Suite 300, Herndon, VA 20171, faxed to (703) 787-0996, or sent via e-mail to Please submit a copy to CUNA so that we may incorporate your comments into our own.


The current NACHA Operating Rules permit the reinitiation of an ACH entry only when 1) an entry was returned for insufficient funds, 2) the entry was returned stop payment and the consumer has authorized reinitiation, or 3) the ODFI has taken corrective action to remedy the reason for the return.


  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. Should this limit apply to all return reason codes or be limited to R01 (insufficient funds) or R09 (uncollected funds)? Please explain and provide any information about what your credit union has experienced.

  3. Do you agree with the recommended implementaion date for this rule change of March 15, 2002? If not, what date would be better?

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

  5. Although there is no present change to the software planned, CUNA and NACHA would like your input on the following question. Would your credit union be supportive of a software change to include a field to indicate the number of times an entry has been reinitiated? How would this field be used by your credit union? Would it provide any benefit or burden to your credit union? Please explain.

  6. 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 •