Rule 9 and the Midnight Deadline

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Question:

Can you give me a clear, simple explanation (if there is one) of Rule 9?

Answer:

The former Clearing House Association of the Southwest headquartered in Dallas, TX, now the National Clearing House Association, has a Rule 9 pertaining to Check Fraud Warranties AKA Forged Maker. This rule extends the midnight return deadline on forged, counterfeit or altered items for clearing members by agreement through a clearing house association.

First published on BankersOnline.com 1/6/03