January 2012: Corporate Account Takeover - Availability Exception Option

On January 1, 2012, a new amendment to the NACHA Operating Rules ("Rules") regarding Corporate Account Takeover went into effect. This amendment provides an option for a Receiving Depository Financial Institution (RDFI) to exempt itself from the funds availability requirement for an ACH credit when it reasonably suspects that the ACH credit is not authorized. The Rule is intended to allow an RDFI the option to use additional time to investigate a suspicious credit prior to making funds available to a Receiver. The additional time might enable Originating Depository Financial Institutions (ODFIs) and RDFIs to identify instances of unauthorized credit entries, and recover funds on behalf of Originators before funds are withdrawn.

Specifically, the Availability Exception Option:

• Provides an RDFI that reasonably suspects that a credit entry is unauthorized with an exemption to the Rules provisions requiring the RDFI to make certain credit entries available to customers more quickly than required to under Regulation CC; and
• Requires the RDFI promptly to notify the ODFI if the RDFI makes use of this exemption to the funds availability requirements of the Rules.

This exemption does not allow the RDFI to delay availability because of the RDFI?s own errors in processing an entry.

PNC is currently evaluating its processes for determining the feasibility of implementing the Availability Exception Option as an RDFI.

For more information about this specific Rule change, please visit http://www.nacha.org/. For the latest copy of the ACH Rules, please contact your Treasury Management representative to request an access code to 'achrulesonline.org'.