Rule 9
Following is the list of Financial Institutions (which includes both ECCHOTM Members and Licensed Entity participants) that have elected to Opt Out of the ECCHOTM Rule outlined in Section XIX regarding Forged & Counterfeit Check Warranties (commonly known in the industry as Rule 9) for image-based transactions. For more information regarding the parameters of this option, please see details below.
|
Member Name
|
Opt Out Effective Date
|
Cancellation of Opt Out Effective Date
|
|
Bankers' Bank |
3/1/12
|
N/A
|
|
Citibank, N.A. |
|
N/A
|
|
Citywide Bank |
2/1/09
|
N/A
|
|
HSBC Bank, U.S.A. |
12/1/06
|
N/A
|
|
Union Bank of California |
1/1/07
|
N/A
|
|
Deutsche Bank |
1/1/07
|
N/A
|
|
PNC Bank |
1/1/07
|
8/1/07
|
|
TCF Bank |
4/1/10
|
N/A
|
|
U.S. Bank |
|
N/A
|
|
Suncoast Schools FCU |
4/1/08
|
8/1/08
|
|
Woodforest National Bank |
11/1/10
|
N/A
|
The Forged & Counterfeit Check Warranties Rule (commonly known in the industry as Rule 9) of Section XIX of the ECCHOTM Rules provides Financial Institutions with an Opt-Out provision. The parameters of the Opt-Out for this rule are as follows:
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A Financial Institution may opt-out of the rule for all exchanges subject to the ECCHOTM Rules. However, the Financial Institution may not opt-out if it is subject to another agreement that makes the rule mandatory (e.g. another clearing house rule).
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If a Financial Institution cancels the opt-out, it can not elect to opt-out again for 6 months (effective dates subject to outline below)
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The effective date of an opt-out decision submitted between the 21st of any given month and the 20th of the following month, is the first day of the next following month. (i.e. opt-out decision submitted to ECCHOTM on November 19th means an effective date of December 1st. An opt-out decision submitted on November 22nd means an effective date of January 1st.) Reversal of an opt-out decision follows the same date/timeline structure as outlined. Exception: An opt-out election can be effective immediately with the activation of an initial ECCHOTM membership.
All Financial Institutions (as described above) are automatically subject to Rule 9. A list of institutions covered by the Rule can be found on the ECCHOTM website, under the Members tab/Current Members subheading:
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The list of Financial Institutions that have elected to opt-out or cancel opt-out along with effective dates of those decisions may be found on this page of ECCHO's website
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If your Financial Institution is seeking to opt-out (or cancel opt-out), please:
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The opt-out election must be made by an authorized representative that is also an officer of the Financial Institution.
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For a Full Member or Participating Member of ECCHOTM - Have an Authorized Representative notify ewestbrook@eccho.org by email or in writing (address and fax number below).
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For a Sponsored Member of ECCHOTM – Have an Authorized Representative notify your Sponsoring Organization who will in turn be responsible for notifying Elizabeth Westbrook with ECCHOTM.
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For a Licensed Entity Participant (The Clearing House CHECCS Participant that is not an ECCHOTM member) - Have an Authorized Representative notify The Clearing House who will in turn be responsible for notifying Elizabeth Westbrook with ECCHOTM.
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You will receive a confirmation via email or in writing of our receipt of your decision that will outline the effective date of the opt-out (or cancel opt-out) along with any other essential information.
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Please see the full text of the Forged & Counterfeit Check Warranties Rule for complete information regarding the Rule.
Please contact Elizabeth Westbrook at ewestbrook@eccho.org or 214-273-3203 should you have any questions.
