PUBLIC LAW 100-86—AUG. 10, 1987
101 STAT. 643
grounded belief in the mind of a reasonable person. Such reasons shall be included in the notice required under subsection (f). (2) BASIS FOR DETERMINATION.—No determination under this subsection may be based on any class of checks or persons. r (3) OVERDRAFT FEES.—If the receiving depository institution determines that a check deposited in an account is a check « described in paragraph (1), the receiving depository institution shall not assess any fee for any subsequent overdraft with 3 respect to such account, if— (A) the depositor was not provided with the written notice fc required under subsection (f) (with respect to such deteri mination) at the time the deposit was made; (B) the overdraft would not have occurred but for the fact
- that the funds so deposited are not available; and
(C) the amount of the check is collected from the originat^ing depository institution. (4) COMPLIANCE.—Each agency referred to in section 610(a) shall monitor compliance with the requirements of this subsection in each regular examination of a depository institution and shall describe in each report to the Congress the extent to which this subsection is being complied with. For the purpose of this paragraph, each depository institution shall retain a record of each notice provided under subsection (f) as a result of the application of this subsection. (d) EMERGENCY CONDITIONS.—Subject to such regulations as the Board may prescribe, subsections (b), (c), and (e) of section 603 shall not apply to funds deposited by check in any receiving depository institution in the case of^ (1) any interruption of communication facilities; (2) suspension of payments by another depository institution; (3) any war; or (4) any emergency condition beyond the control of the receiving depository institution, if the receiving depository institution exercises such diligence as the circumstances require. (e) PREVENTION OF FRAUD LOSSES.—
(1) IN GENERAL.—The Board may, by regulation or order, suspend the applicability of this title, or any portion thereof, to any classification of checks if the Board determines that— (A) depository institutions are experiencing an unacceptable level of losses due to check-related fraud, and (B) suspension of this title, or such portion of this title, with regard to the classification of checks involved in such fraud is necessary to diminish the volume of such fraud. (2) SUNSET PROVISION.—No regulation prescribed or order issued under paragraph (1) shall remain in effect for more than 45 days (excluding Saturdays, Sundays, legal holidays, or any day either House of Congress is not in session). (3) REPORT TO CONGRESS.— (A) NOTICE OF EACH SUSPENSION.—Within
10 days of prescribing any regulation or issuing any order under paragraph (1), the Board shall transmit a report of such action to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.
91-194 O - 90 - 22: QL.3 Part 1
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