How Regulation J & OC8 Apply to FedNow Rules
Regulation J provides the legal framework for depository institutions to collect checks and other items and to settle balances through the Federal Reserve System. OC8, along with Reg J applies to funds transfers using FedNow. Faculty in this course set the stage by providing a general overview of the funds flow, settlement, terminology and parties involved in a FedNow transfer, and how these transfers compare to other similar services. Students also learn who is covered by Regulation J, key requirements for each party, and the interplay between UCC 4a and Reg E with regard to consumer FedNow transfers.