ITT: questions + serious discussion on commercial paper

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dood
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ITT: questions + serious discussion on commercial paper

Postby dood » Fri Dec 02, 2011 4:34 pm

whats up.

Q1: can anyone explain to me the Reg. CC midnight deadline extension per Reg. CC 229.30(c)? so i think i get the 1 day extension, but wtf is the additional extension for "expeditious return"?

thanks. and id be happy to try and answer ur Qs too.

luckyduck
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Re: ITT: questions + serious discussion on commercial paper

Postby luckyduck » Fri Dec 02, 2011 6:39 pm

This is what my outline says:


i. Reg CC extension of midnight deadline 229-33(c)1.
Extend by 1 day if bank decides to expedite delivery of returned item and chooses a method that would get the item to the DB on the banking day following the midnight deadline. -- courier or someother expeditious manner

HTH, I haven't started prep for that exam yet so I haven't really fleshed it out yet.

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dood
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Re: ITT: questions + serious discussion on commercial paper

Postby dood » Fri Dec 02, 2011 7:12 pm

luckyduck wrote:This is what my outline says:


i. Reg CC extension of midnight deadline 229-33(c)1.
Extend by 1 day if bank decides to expedite delivery of returned item and chooses a method that would get the item to the DB on the banking day following the midnight deadline. -- courier or someother expeditious manner

HTH, I haven't started prep for that exam yet so I haven't really fleshed it out yet.


yeah, i got that part. i.e., if check is received on Mon, midnight Tue is the bank's normal midnight deadline, but if using method that would normally get the check back by Wed then the bank's midnight deadline extended until Wed.

but i have something else in my notes + saw something in a supplement ("Payment Systems" by Lawrence): "Regulation CC specifically provides for extensions of the midnight deadline . . . in two situations." [first situation is what we discussed]. "Second, the midnight deadline is extended further of a paying bank uses a highly expeditious means of transportation even if this means of transportation would result in delivery after the receiving bank's next banking day."

so does that mean if u use a cruise missile to send the check back from NY to CA (normally a 1 hr trip), but somehow it gets there THREE days after the receiving bank's next banking day - still OK?




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