NACHA Rule Change

September 2013: Effective Period of Stop Payment to Non-Consumer Account

On September 20, 2013, the Rules regarding Stop Payments - Effective Period of Stop Payment to Non-Consumer Account will go into effect. This Rule revises language regarding the effective period of a stop payment order related to a debit Entry to a Non-Consumer Account, incorporating two additional conditions under which a stop order would lapse.

Prior to this change, a stop payment order on a Non-Consumer Entry will expire after six months, unless it is renewed in writing. The Rules will now take into account two additional conditions under which an RDFI may remove the stop payment order:

  1. the withdrawal of the stop payment order by the Receiver, or
  2. the return of the debit Entry to which the stop payment order relates.

This Rule incorporates these additional conditions into the Rules reflecting current business practices and aligning to a greater extent corporate and consumer stop payment rules. The new Rule does not impact the existing reference to the six month effective time period for a stop payment order but recognizes that the stop payment order will lapse at the earliest of these three conditions.

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