Hello, I'm confused about timeframe for a returned check. Reg CC has language in 223.32 stating that a check should be returned by the second business day after the banking day the check was presented to the paying bank.

My understanding is that UCC you have until midnight on the day after the check was presented. So, Reg CC seems to allow for an additional day. Which timeline applies?

It is the receipt by the BOFD, not when the returning bank has to begin the process. Regulation CC does not overrule the UCC or specific clearinghouse rules regarding liability.

a returning bank shall return a returned check in an expeditious manner such that the check would normally be received by the depositary bank not later than 2 p.m. (local time of the depositary bank) on the second business day following the banking day on which the check was presented to the paying bank.

Ok, I think I'm following now. Thank you!

Hello Compy Guy, I hope you don't mind, but I am going to jump in this discussion. We have a person that received his statement, called us to say that 2 checks were fraudulent. the Call Center sent the call to bookkeepping who should have gave provisional credit and sent on the fraud for investigation. They did send the checks to fraud but now I find out they never gave the customer provision credit (has been 12 days today) Do return checks due to fraud follow Reg CC or UCC (if UCC is it article 3 or 4)? And what is the proper time limit to give credit (10 days or 45 depending on invetigation?) Thank you.

There is no timeframe, once you determine that the item was fraudulent and paid by the bank, you just owe them the money. There is no "provisional" credit.