ECCHO Rules History

ECCHO Rules - Revision History

DISCLAIMER: Summaries and revision notes for the ECCHO Rules are intended to assist Members in reviewing the ECCHO Rules. These summaries and revision notes are not themselves binding Rules and do not alter or amend the Rules. Please consult the ECCHO Rules and Commentary for the full text of the Rules and related Commentary.

November 2009
• Overview of Revisions: November 2009 Rules Changes
• Redline of Revisions: November 2009 Redline Rules Changes & new Exhibit II

June 2009
• Overview of Revisions: June 2009 Rules Changes
• Redline of Revisions: June 2009 Redline Rules Changes

February 2009
• Overview of Revisions: February 2009 Rules Changes
• Redline of Revisions: February 2009 Redline Rules Changes

December 2008
• Overview of Revisions: December 2008 Rules Changes
• Redline of Revisions: December 2008 Redline Rules Changes
Additionally, Please Note: ECCHO has eliminated provisions relating to ECP with Paper to Follow from its rules. These changes were extensive, so instead of providing the tracked version of those changes you will find a Comparison Chart for ECP Rules Deletion that describes the changes. If you have a need for the tracked version of the rules, please contact Elizabeth Westbrook at (214) 273-3203.

June 2008
• Overview of Revisions: June 2008 Rules Changes
• Redline of Revisions: June 2008 Redline Rules Changes

January 2008

• Introduction
(for redline version click here)

• Section I - Definitions
(for redline version click here)

- Modified Section I(K) Presentment Notice and associated Commentary
- Added Section I(S) & I(T) - Third Party Agent & Transmitted Customer Data respectively and associated Commentary

• Section II(C) - Rules - Participation
(for redline version click here)

- Member required to notify other exchange members when discontinue membership
- ECCHO has authority to notify Members, Sponsoring Organizations and other persons regarding current membership and exchange status and associated Commentary

• Section III(B) - Eligible Items
(for redline version click here)

- Moved reference that fully qualified item is described in Reg CC

• Section VI - Settlement
(for redline version click here)

- Eliminated condition that member did not breach warranty for settlement to occur
- Allows settlement by debiting of the due to account maintained by the receiving bank with the sending bank
- Settlement can occur by agreement of banks and associated Commentary

• Section IX - Data Security for ECP and Electronic Image Information
(for redline version click here)

- Eliminated definition of Transmitted Customer Data that now appears in Section I and associated Commentary

• Section X - Data Confidentiality
(for redline version click here)

- Add new Confidentiality Section by moving provision from Section XIX and XX with some additional modifications and associated Commentary

• Section XVI - Exchange Arrangements
(for redline version click here)

- Eliminate old Section XVI - Electronic Check
- Members that participate in different image networks may exchange transactions that pass through multiple networks
- To address technical and operational issues Members may enter into agreement that addresses issues, rely on agreement of Networks or use following provision
- Without other agreement, issues requiring agreement will be governed by agreement of receipt member's network
- Commentary provides examples and explains this is backstop rule when no other agreement exists

• Section XIX - Rules and Commentary
(for redline version click here)

• Section XIX(A) - Electronic Image - Definitions

Modified definition of Electronic Image

Eliminated definition of Third Party Agent, which is now in Section I

• Section XIX(C) - Electronic Image - Items Eligible for Imaging - Commentary modifications

- Ineligible items are governed by Rules, but is breach of warranty
- Recommend including in agreement that ECCHO rules apply to exchanges
- Eliminated Commentary regarding Network agreements, which is now included in Section XVII

• Section XIX(G) - Electronic Image - Transmission and Acknowledgement of Electronic Image

- Electronic Image file is not received if as a technological or computer systems matter cannot be processed
- Commentary provides examples of files that cannot be processed
- Receiving bank must notify sending bank timely if Electronic Image file cannot be processed
- Sending bank must maintain or be able to recreate Electronic Image file for one business day after it was sent
- Receiving Bank can make request for resend within that one day
- Receiving Bank can only request image file previously sent
- Sending Bank shall send file a second time by close of business one business day after the receiving bank requested the resend
- When acting upon receiving bank request, sending bank shall not be deemed to breach warranty under rules or other applicable law

Provides safe harbor for Sending Bank
Members are encourage to consider internal processes for these requests to avoid sending incorrect files

Sending bank's sole liability for failure to resend file is limited to additional costs resulting from the failure to comply incurred by the Receiving Bank

- Sending banks failure to comply is not a breach of warranty under the rules or subjects the Sending Bank to liability to the Receiving Bank
- For exchange between a sending bank and receiving bank that is not the paying bank, Electronic Image is received in accordance with the rule for timing of presentment (Section XIX(H))

Obligations of receiving bank that is acting as collecting bank would not arise until Electronic Image is received in accordance with this rule

• Section XIX(H) - Electronic Image - Presentment - Commentary

- Clarified the use of "associated" in the rule
- Clarified that a Mis-matched MICR is a breach of warranty under Section XIX(L)

MICR line and Electronic Image do not refer to the same item

- Eliminated references to minimum quality standard

• Section XIX(K)(2) - Electronic Image - Storage and Retrieval of Related Physical Checks and Images

- Eliminated provision and associated Commentary that is now included in Section X - Data Confidentiality

• Section XIX(L)(6) - Electronic Image - Sending Bank Warranties and Indemnification

- Eliminated warranty and associated Commentary

• Section XIX(L)(7) - (9) - Electronic Image - Sending Bank Warranties and Indemnification

- Eliminated these warranties and associated Commentary relating to duplicate items
- Replaced with a new duplicate warranty and associated commentary
- Structured similar to duplicate warranty in Regulation CC

• Section XX - Rules and Commentary

(for redline version click here)

• Section XX(A) - Electronic/Image Returns - Definitions

- Modified definition of Electronically Returned Item and changed name to Originally Received Item
- Eliminated definition of Third Party Agent, which is now in Section I

• Section XX(C) -Electronic/Image Returns - Eligibility of Electronic/Image Return - Commentary

- References Section XIX(C) for discussion on agreements

• Section XX(D) - Electronic/Image Returns - Electronic/Image Returns - Commentary

- Eliminated reference to minimum quality standard

• Section XX(F) - Electronic/Image Returns - Return of Electronic/Image Returns

- Parallel changes as made in Section XIX(G) - Electronic Image - Transmission and Acknowledgement of Electronic Image for returns
- Eliminated references to minimum quality standard

• Section XX(G)(2) - Electronic/Image Returns - Electronic/Image Return in Lieu of Return of Related Physical Check

- Eliminated provision and associated Commentary that is now included in Section X - Data Confidentiality

• Section XX(J)(4) - (5) - Electronic/Image Returns - Returning Bank Warranties and Indemnification

- Eliminated these warranties and associated Commentary relating to duplicate items
- Replaced with a new duplicate warranty and associated commentary

Structured similar to duplicate warranty in Regulation CC

October 2007

• Section XIX - Rules and Commentary
(for redline version click here)

• Section XIX(A) - Electronic Image - Definitions

- Replaced definition of Legible Copy of Related Physical Check with a new definition for Acceptable Copy of Related Physical Check
- Added two new definitions (Image Usability and Legibility)
- Commentary to Acceptable Copy of Related Physical Check

Does not include non-information characteristics

• Section XIX(L)(3) - Electronic Image - Sending Bank Warranties and Indemnification

- Replaced Image Quality warranty with

Electronic Image is an Acceptable Copy of Related Physical check provided Sending Bank is not liable if

- Sending Bank can establish the loss would have occurred had the Related Physical check instead of the Electronic Image been sent to the receiving bank
- Commentary to Image Quality Warranty

Effect of warranty is to place liability for loss arising from unusable Electronic Image on sending bank
Sending bank makes image quality warranty even if sending bank has received Image from customer
Warranty creates presumption that unusable Image is caused by sending bank or customer or prior bank
Rule places burden on sending bank to show loss would have occurred had physical check been sent to receiving bank
Refer to Exhibit VI on quality and usability

• Section XIX(N) - Electronic Image - Remotely Created Check Warranty

- Section XIX(N)(2)(ii)

Changed "stamped" to "with notation of"
Added "or reason code" after "similar language"
Added to commentary

- Paying Bank may use a reason code to reflect that the item is being sent as a warranty claim

• Section XIX(O) - Electronic Image - Forged and Counterfeit Check Warranties

- Sending Bank does not make warranty if the Check or image of Check was first deposited by a foreign office
- Commentary

Excludes from warranty items received at foreign office of bank and transferred to correspondent Sending Bank in US for collection
Exception to Rule is necessary to treat correspondent items received from bank outside the US same as correspondent items received from banks in US
Under check law [Commentary to Section 229.2(o) of Reg CC], Sending Bank that receives item from foreign office of bank is viewed as BOFD

- Section XIX(O)(3)(iii)

Changed "stamped" to "with notation of"
Added " or reason code" after "similar language"
Added to commentary

- Paying Bank may use a reason code to reflect that the item is being sent as a warranty claim

• Section XX - Rules and Commentary
(for redline version click here)

• Section XX(A) - Electronic Image - Definitions

Does not include non-information characteristics

• Section XX(J)(3) - Electronic Image - Returning Bank Warranties and Indemnification

- Replaced Image Quality warranty with

Electronic Image is an Acceptable Copy of Related Physical check provided Returning Member is not liable if

- Returning Member can establish the loss would have occurred had the Related Physical check instead of the Electronic Image been sent to the Returnee Member
- Commentary to Image Quality Warranty

Refer to Commentary to Section XIX(L)(3) for discussion of the issues associated with image quality and an Acceptable Copy of Related Physical Check
Refer to Exhibit VI on quality and usability

• Exhibit VI - Electronic Image Quality Standards
(for redline version click here)

- Eliminated current exhibit and replaced with new exhibit that discusses

Usability of image more important
Encourage industry and customer practices
Risk of poor quality is manageable
With proper maintenance of equipment, usability of image should be similar to usability of paper item
FIs may be asked to provide better or alternate format
Usability addresses bank's ability to process payment
Reference to Reg CC commentary on accurate representation
Included measurements from FSTC study and other industry efforts
Developing and following objective definition of image quality has been elusive
Industry continuing to develop and implement standardized tools
List of resources on quality include FSTC and X9 documents

July 2007

• Introduction
(for redline version click here)

• Section I - Rules
(for redline version click here)

• Section I(K) - Definitions - Presentment Notice

- Added reference to Section XIX

• Section III - Rules and Commentary
(for redline version click here)

• Section III(A) - Items Eligible for Exchange; Repair; Integrity; Items Eligible for RNOTEs - Eligible Items

- Added reference to Section XIX(G) and related commentary

• Section III(B) - Items Eligible for Exchange; Repair; Integrity; Items Eligible for RNOTEs - Repair of Item

- Changed III(B)(3), that said no other repair allowed under rules, to Sending bank would be subject to liability under applicable law or by agreement for other repair
- Commentary

Other repairs subject to warranties in Regulation CC and UCC

• Section V - Commentary
(for redline version click here)

• Section V(B) - Exchange of Notices and Items: Presentment Notices: Presentment - Presentment Notice

- Added reference to Section XIX(G) in commentary

• Section VI - Rules
(for redline version click here)

• Section VI - Settlement

- Eliminated reference to Section V(C)

• Section IX - Rules and Commentary
(for redline version click here)

• Section IX - Data Security for ECP and Electronic Image Information

- New Section

• Section XIX - Rules and Commentary
(for redline version click here)

• Section XIX(C) - Electronic Image - Items Eligible for Imaging

- Commentary changes only
- Clarified that there is no obligation to encode an amount on the item or image for it to be eligible for exchange
- In addition to written agreements, clarified other ways members can establish agreements

Agreements could take form of clearinghouse rules
Members could enter into agreement with archive or network
Third party process could be authorized to enter into agreement on behalf of member with other members and exchange network
Agreement may not be executed signed agreement

- Oral
- Course of dealing
- Business practices

• Section XIX(D) - Electronic Image - Provision of Electronic Image of Eligible Item

- Commentary shortened and simplified

• Section XIX(E) - Electronic Image - Indorsement of Related Physical Check

- Changed requirement of sending bank to indorse Related Physical Check to allow sending bank to indorse Electronic Image or Related Physical Check

• Section XIX(K) - Electronic Image - Storage and Retrieval of Related Physical Checks and Images

- Changed retention of Related Physical Check from a minimum of one day after presentment to allowing sending bank that is in possession of check to determine time period for retention

Related commentary changed

- Changed retrieval requests format requirements from reference to Exhibit X that used X9.46 to applicable industry standards

Related commentary changed

- Added sending bank will respond to retrieval requests within its retention period if it can obtain check with commercially reasonable effort and expense

Related commentary changed

- Additional Commentary changes

Sending bank should consider return timeframes when determining retention period
Sending bank that permits customers to truncate check may want to consider obligations on customer to destroy the check

• Section XX - Rules and Commentary
(for redline version click here)

• Section XX(D) - Electronic/Image Returns- Electronic/Image Returns

- New XX(D)(4)

Returning Member is not required to indicate all applicable return reasons
If item is represented, Returning Member may return for any applicable return reason

- As long as timely and complies with rules and applicable law
- Commentary

Member may return due to technical or quality screens
Member in its discretion and consistent with general practices can determine which return reason to use
If item represented, may return for any reason, even one it was aware of at time of first return

• Section XX(F) - Electronic/Image Returns- Return of Electronic/Image Returns

- Receipt of Image Return not conditioned on satisfaction of quality standard

• Exhibits - Exhibit VIII - Deleted
(for redline version click here)

• Exhibits - Exhibit IX Moved - now Exhibit VIII

September 2006

Cover Page
Introduction
Section XIX - Rules and Commentary
Section XX - Rules and Commentary
Exhibits - Exhibit I
Exhibits - Exhibit IX - Replaced

January 2006

Introduction
Section I through III - Rules and Commentary
Section V through VIII - Rules and Commentary
Section XII - Rules and Commentary
Section XIV through XV - Rules and Commentary
Section XVI - Deleted
Section XVII - Deleted
Section XVIII - Deleted
Section XIX - Rules and Commentary
Section XX - Rules and Commentary
Exhibits - Exhibit II & III
Exhibits - Exhibit II & III
Exhibits - Exhibit VI & VII - Deleted
Exhibits - Exhibit VIII through XI - Renumbered

June 2005

Introduction
Section I - Rules and Commentary
Section II - Commentary
Section III through VIII - Rules and Commentary
Section IX - Deleted
Section X - Rules and Commentary
Section XII - Rules and Commentary
Section XIX - Rules and Commentary
Section XX - Rules and Commentary
Exhibits - Exhibit IV

June 2004

Section I - Rules
Section IV - Commentary
Section XVI - Removed, Available upon request through ECCHO office
Section XVII - Removed, Available upon request through ECCHO office
Section XVIII - Removed, Available upon request through ECCHO office
Section XIX - Rules and Commentary
Exhibits - Exhibit IV