[Federal Register Volume 68, Number 241 (Tuesday, December 16, 2003)]
[Notices]
[Pages 70076-70077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30942]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

[No. 2003-63]


Required Notice to Customers Making Payment by Check

AGENCY: Office of Thrift Supervision (OTS), Treasury.

ACTION: Notice.

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SUMMARY: In a continuing effort to operate more efficiently, the Office 
of Thrift Supervision (OTS) has implemented a new system for processing 
checks it receives.

DATES: Effective October 31, 2003.

FOR FURTHER INFORMATION CONTACT: Howard Verp, Operating Accountant, 
(202) 906-6427; or Gina March, Operating Accountant, (202) 906-7247, 
Financial Operations, Information Systems, Administration & Finance, 
Office of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552.

SUPPLEMENTARY INFORMATION: OTS receives checks from customers for 
examination fees, application filings, conference registrations, 
security filings, and other purposes. The Bureau of Public Debt's 
Administrative Resource Center (ARC) now processes all checks received 
for OTS. ARC utilizes a Financial Management Service system to convert 
each check received for OTS into an electronic fund transfer.
    The following guidelines apply:
    Authorization to Convert the Check: If a customer submits a check 
to OTS to make a payment, the check will be converted to an electronic 
fund transfer. ``Electronic fund transfer'' is the term used to refer 
to the process by which OTS electronically instructs the customer's 
financial institution to transfer funds from the customer's account to 
OTS's account, rather than processing the check. By submitting a 
completed, signed check to OTS, the customer authorizes OTS to copy the 
check and to use the account information from the check to make an 
electronic fund transfer from the customer's account for the same 
amount as the check. If the electronic fund transfer cannot be 
processed for technical reasons, the customer authorizes OTS to process 
the check.
    Insufficient Funds: The electronic fund transfer from the 
customer's account will usually occur within 24 hours, which is less 
time than when a check is normally processed. Therefore, the customer 
should ensure that there are sufficient funds available in the 
customer's checking account when the customer sends OTS the check. If 
the electronic fund transfer cannot be completed because of 
insufficient funds, OTS will try to make the transfer up to two times 
before contacting the customer.
    Transaction Information: The electronic fund transfer from the 
customer's account will appear on the account statement the customer 
receives from the customer's financial institution. However, the 
transfer may be in a different place on the statement from where the 
customer's checks normally appear. For example, it may appear under 
``other withdrawals'' or ``other transactions.'' The customer will not 
receive the original check back from the financial institution. For 
security reasons, OTS will destroy the original check, but OTS will 
keep a copy of the check for record keeping purposes.
    Customer Rights: The customer should contact the financial 
institution

[[Page 70077]]

immediately if the customer believes that the electronic fund transfer 
reported on the account statement was not properly authorized or is 
otherwise incorrect. The Electronic Fund Transfer Act provides 
consumers with protections for unauthorized or incorrect electronic 
fund transfers.

    Dated: December 9, 2003.

    By the Office of Thrift Supervision.
James E. Gilleran,
Director.
[FR Doc. 03-30942 Filed 12-15-03; 8:45 am]
BILLING CODE 6720-01-P