Location at Which Checks May be Presented to you for Payment

The next rule imposed on paying banks that we will examine is the one listing the locations at which banks can present for payment checks payable by you.

1. A location to which you request that the check be delivered;
2. An address associated with the routing number on the check, whether the routing number is in magnetic ink or in fractional form;
3. Any branch or head office if your bank is identified on the check by name but not by address; or
4. The branch, head office, or other location associated with the name and address of the bank on the check if your bank is identified by name and address on the check.

[12 CFR 229.36(b)]

You are also allowed to agree with the presenting bank that presentment takes place when you receive an electronic transmission of information describing the check rather than upon the physical delivery of the check. [Commentary, 12 CFR 229.37, C.-9] See our later section dealing with the circumstances under which a paying bank is allowed to send a “notice in lieu of return.”

You should keep these rules in mind when thinking about what the checks your customers will be using will look like. Regulation CC presumes that paying banks have control over the checks their customers use. In most cases, that is probably true since most customers order their check blanks through their banks. To the extent you can control what is on the checks your customers use, you should think about what effects the contents of those checks have on the locations at which you must accept checks for presentment.