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12 U.S.C. § 5010 — Statute of limitations and notice of claim
Federal law — U.S. Code and appendices · legal_authorities
**(a) Actions under this chapter**
(1) **In general** — An action to enforce a claim under this chapter may be brought in any United States district court, or in any other court of competent jurisdiction, before the end of the 1-year period beginning on the date the cause of action accrues.
(2) **Accrual** — A cause of action accrues as of the date the injured party first learns, or by which such person reasonably should have learned, of the facts and circumstances giving rise to the cause of action.
**(b) Discharge of claims** Except as provided in subsection (c), unless a person gives notice of a claim to the indemnifying or warranting bank within 30 days after the person has reason to know of the claim and the identity of the indemnifying or warranting bank, the indemnifying or warranting bank is discharged from liability in an action to enforce a claim under this chapter to the extent of any loss caused by the delay in giving notice of the claim.
**(c) Notice of claim by consumer** A timely claim by a consumer under [section 5006 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5006&num=0&edition=prelim) for expedited recredit constitutes timely notice of a claim by the consumer for purposes of subsection (b).
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Source file: Laws/federal/codes/united-states-code/title-12/section-5010-statute-of-limitations-and-notice-of-claim--e8f7a453f9.md
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Source location: Title 12, Chapter 50, § 5010; chapter-050-check-truncation.md
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**(a) Actions under this chapter**
(1) **In general** — An action to enforce a claim under this chapter may be brought in any United States district court, or in any other court of competent jurisdiction, before the end of the 1-year period beginning on the date the cause of action accrues.
(2) **Accrual** — A cause of action accrues as of the date the injured party first learns, or by which such person reasonably should have learned, of the facts and circumstances giving rise to the cause of action.
**(b) Discharge of claims** Except as provided in subsection (c), unless a person gives notice of a claim to the indemnifying or warranting bank within 30 days after the person has reason to know of the claim and the identity of the indemnifying or warranting bank, the indemnifying or warranting bank is discharged from liability in an action to enforce a claim under this chapter to the extent of any loss caused by the delay in giving notice of the claim.
**(c) Notice of claim by consumer** A timely claim by a consumer under [section 5006 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5006&num=0&edition=prelim) for expedited recredit constitutes timely notice of a claim by the consumer for purposes of subsection (b).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Findings** The Congress finds as follows:
(1) In the Expedited Funds Availability Act [[12 U.S.C. 4001](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4001&num=0&edition=prelim) et seq.], enacted on August 10, 1987, the Congress directed the Board of Governors of the Federal Reserve System to consider establishing regulations requiring Federal reserve banks and depository institutions to provide for check truncation, in order to improve the check processing system.
(2) In that same Act, the Congress—
(A) provided the Board of Governors of the Federal Reserve System with full authority to regulate all aspects of the payment system, including the receipt, payment, collection, and clearing of checks, and related functions of the payment system pertaining to checks; and
(B) directed that the exercise of such authority by the Board superseded any State law, including the Uniform Commercial Code, as in effect in any State.
(3) Check truncation is no less desirable in 2003 for both financial service customers and the financial services industry, to reduce costs, improve efficiency in check collections, and expedite funds availability for customers than it was over 15 years ago when Congress first directed the Board to consider establishing such a process.
**(b) Purposes** The purposes of this chapter are as follows:
(1) To facilitate check truncation by authorizing substitute checks.
(2) To foster innovation in the check collection system without mandating receipt of checks in electronic form.
(3) To improve the overall efficiency of the Nation’s payments system.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5001
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Recredit claims**
(1) **In general** — A consumer may make a claim for expedited recredit from the bank that holds the account of the consumer with respect to a substitute check, if the consumer asserts in good faith that—
(A) the bank charged the consumer’s account for a substitute check that was provided to the consumer;
(B) either—
(i) the check was not properly charged to the consumer’s account; or
(ii) the consumer has a warranty claim with respect to such substitute check;
(C) the consumer suffered a resulting loss; and
(D) the production of the original check or a better copy of the original check is necessary to determine the validity of any claim described in subparagraph (B).
(2) **40-day period** — Any claim under paragraph (1) with respect to a consumer account may be submitted by a consumer before the end of the 40-day period beginning on the later of—
(A) the date on which the financial institution mails or delivers, by a means agreed to by the consumer, the periodic statement of account for such account which contains information concerning the transaction giving rise to the claim; or
(B) the date on which the substitute check is made available to the consumer.
(3) **Extension under extenuating circumstances** — If the ability of the consumer to submit the claim within the 40-day period under paragraph (2) is delayed due to extenuating circumstances, including extended travel or the illness of the consumer, the 40-day period shall be extended by a reasonable amount of time.
**(b) Procedures for claims**
(1) **In general** — To make a claim for an expedited recredit under subsection (a) with respect to a substitute check, the consumer shall provide to the bank that holds the account of such consumer—
(A) a descript
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5006
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Federal law — U.S. Code and appendices · legal_authorities
Page 1782
TITLE 12—BANKS AND BANKING
§ 5009
§ 5009. Measure of damages
(a) Liability
(1) In general
Except as provided in section 5005 of this
title, any person who, in connection with a
substitute
check,
breaches
any
warranty
under this chapter or fails to comply with any
requirement imposed by, or regulation pre-
scribed pursuant to, this chapter with respect
to any other person shall be liable to such per-
son in an amount equal to the sum of—
(A) the lesser of—
(i) the amount of the loss suffered by the
other person as a result of the breach or
failure; or
(ii) the amount of the substitute check;
and
(B) interest and expenses (including costs
and reasonable attorney’s fees and other ex-
penses of representation) related to the sub-
stitute check.
(2) Offset of recredits
The amount of damages any person receives
under paragraph (1), if any, shall be reduced by
the amount, if any, that the claimant receives
and retains as a recredit under section 5006 or
5007 of this title.
(b) Comparative negligence
(1) In general
If a person incurs damages that resulted in
whole or in part from the negligence or failure
of that person to act in good faith, then the
amount of any liability due to that person
under subsection (a) shall be reduced in pro-
portion to the amount of negligence or bad
faith attributable to that person.
(2) Rule of construction
Nothing in this subsection reduces the rights
of a consumer or any other person under the
Uniform Commercial Code or other applicable
provision of Federal or State law.
(Pub. L. 108–100, § 10, Oct. 28, 2003, 117 Stat. 1188.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (a)(1), was in the
original ‘‘this Act’’, meaning Pub. L. 108–100, Oct. 28,
2003, 117 Stat. 1177, w
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 5010
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