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CICS OM 20-032

Updated: Dec 11, 2020

February 13, 2020

T O : All Member/Participant Banks


R E : INCLUSION OF THE PHRASE, “CONSERVATORSHIP/RECEIVERSHIP ORDER” ON THE

DESCRIPTION OF RETURN REASON CODE “F”

1. A government regulator or authorized agency may issue a “No Debit Allowed” or a related order on deposit accounts of companies/entities it places under ‘Conservatorship’ or ‘Receivership’.


2. With the assignment of a Conservator or a Receiver to take charge of a company or entity’s operations or assets, the affected accounts of that company or entity may be assigned a new set of signatories which shall be binding until such order is lifted or discharged. As such, Checks issued by affected company or entity prior to the issuance of an order may be returned.


3. Recognizing the need to return a clearing item that is compliant with a Conservator or Receiver order, we have added the phrase, “Conservatorship/Receivership Order” on the description of the Return Reason Code “F”, to wit:


Return Description Tran Code Re-Presentable Reason Code _________________________________________________________________________________

F Account under Garnishment/Covered by 24 R Hold/Freeze/Conservatorship/

Receivership Order

4. With the issuance of this Operating Memo, PCHC will send broadcast of such changes to update the description of Return Reason “F” in the banks’ PBM (Return Reason.INI) effective February 17, 2020. Front-End Systems of participant banks other than PCHC-provided (for Rural Banks), may still need to effect manually the update.


5. Kindly update Section 7 (Return Reason Codes) of CICS OM No. 18-026 to reflect the new description of Return Reason Code ‘F’.

CICS OM No.20-032
.Inclusion of the Phras
Download INCLUSION OF THE PHRAS • 435KB