Direct Deposit Coalition Formed; Logo and Web Site Unveiled

New Policy Encourages Compliance with ACH Rules

Lower Electronic Fees and New Price Structures in 1999

New ACH Service Supplements FedEDI Software

Treasury Approves Final EFT 99 Rule

ReserveNotes

Louisville Bids Farewell to
Ron Hadorn; Welcomes Ralph Ising

FedEDI Software Now Available

New Policy Encourages Compliance
with ACH Rules

NACHA recently amended the 1998 ACH Rulesto include a system of fines to be assessed on financial institutions for misuse or noncompliance of the NACHA rules.

Penalties are designed to encourage compliance with the rules and send a message to users that the ACH network is safe and reliable.

The following outlines the requirements for the reporting and investigation of possible rule violations and the assessment of fines:

1. Any ACH participant can initiate a rules enforcement proceeding by submitting a Report of Possible ACH Rules Violation.
2. NACHA will send a notice to the financial institution that committed the alleged violation.
3. The financial institution will be asked to either correct or challenge the problem and send a response to NACHA within 15 business days.
4. If the response is satisfactory, no additional action will be taken.
5. A second notice will be sent to the financial institution if NACHA does not receive a response or if the institution is cited with the recurrence of the violation.
6. The institution will be asked to correct the problem and send a response form to NACHA within 10 banking days.
7. If the response is satisfactory, no additional action will be taken. A fine may be levied if no response is received or if the problem is not corrected. (If an institution is fined, NACHA will debit its account. The institution will receive a notice from NACHA seven banking days before the fine's settlement date.)

If you have any questions about this policy, which became effective Dec. 18, 1998, please call your account executive or Pat McNamara-Smith in St. Louis at (314) 444-8713.