An Originator or ODFI must originate a Reclamation Entry or written demand for payment within how many banking days after receiving notice of the death of the Receiver?

An Originator or ODFI must originate a Reclamation Entry or written demand for payment within how many banking days after receiving notice of the death of the Receiver?

• A. Three Banking Days
• B. Five Banking Days
• C. Seven Banking Days
• D. Ten Banking Days

Answer: (B)

The correct answer is five banking days. This requirement is outlined in the NACHA Operating Rules, which govern the ACH network. When an Originator or an ODFI (Originating Depository Financial Institution) receives notice of the death of a Receiver, they must act promptly to ensure that any funds that should not be drawn from the decedent’s account are reclaimed swiftly. The five banking days provide a clear timeframe within which the financial institution must initiate a Reclamation Entry or written demand for payment, ensuring the estate is settled in a timely manner and in accordance with legal obligations. This timeframe helps protect the interests of the deceased’s estate and any beneficiaries who may be affected by improper withdrawals. By adhering to this timeline, OFDIs help maintain the integrity of the ACH system while also respecting the legal and financial affairs that must be handled following an individual's death.

The correct answer is five banking days. This requirement is outlined in the NACHA Operating Rules, which govern the ACH network. When an Originator or an ODFI (Originating Depository Financial Institution) receives notice of the death of a Receiver, they must act promptly to ensure that any funds that should not be drawn from the decedent’s account are reclaimed swiftly. The five banking days provide a clear timeframe within which the financial institution must initiate a Reclamation Entry or written demand for payment, ensuring the estate is settled in a timely manner and in accordance with legal obligations.

This timeframe helps protect the interests of the deceased’s estate and any beneficiaries who may be affected by improper withdrawals. By adhering to this timeline, OFDIs help maintain the integrity of the ACH system while also respecting the legal and financial affairs that must be handled following an individual's death.