Regulation J

AAA

DEFINITION of 'Regulation J'

A regulation set forth by the Federal Reserve. Regulation J establishes the core guidelines for the processing of checks and other cash instruments for Federal Reserve Banks, senders and payers of checks, and recipients and senders of Fedwire funds. It also allows for these items to be settled on a net basis.

INVESTOPEDIA EXPLAINS 'Regulation J'

Regulation J also stipulates the collection framework for sent checks for banks or depository institutions. It also describes the procedure for presentation to a paying bank as well as the return of items that are unpaid. Member banks of the Federal Reserve also periodically publish operating circulars that serve as supplements to the Regulation.

RELATED TERMS
  1. Regulation 9

    A regulation that permits national banks to open and operate ...
  2. Regulation AA

    A regulation designed to address practices by banks that are ...
  3. Regulation B

    A regulation intended to prevent discrimination against applicants ...
  4. Regulation C

    A regulation that implements the Home Mortgage Disclosure Act ...
  5. Regulation CC

    One of the banking regulations set forth by the Federal Reserve. ...
  6. Financial Instrument

    A real or virtual document representing a legal agreement involving ...
Related Articles
  1. Analyzing A Bank's Financial Statements
    Fundamental Analysis

    Analyzing A Bank's Financial Statements

  2. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  3. Get To Know The Major Central Banks
    Forex Education

    Get To Know The Major Central Banks

  4. How The Federal Reserve Was Formed
    Personal Finance

    How The Federal Reserve Was Formed

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center