What is Rule 9 and what are the key provisions associated with Opting Out or Rescinding Opt Out?
The ECCHO Board of Directors approved a Forged & Counterfeit Check Warranties Rule (commonly known in the industry as Rule 9) for image-based transactions. The rule specifies that the Depositary Bank warrants the drawer’s signature is not forged and the check is not counterfeit. It allows members to make a warranty claim using a process specifically outlined in the rule; the rule potentially expedites these claims. The rule allows members an Opt-Out provision.
