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System of Records Notice (SORN)

The System of Records Notice (SORN) is part of the Combined Federal Register (CFR) - System of Records Notice (SORN)PDF file. The Notice must be provided in a clear and conspicuous manner.

OTCnet Program Check Capture Legal Notices

The OTCnet Program offers agencies the opportunity to expedite the settlement of collections by participating in the OTCnet check capture process. Under this process, source documents, e.g., checks, received by the participating agency by mail, at the point-of-purchase, or other locations, are converted to Automated Clearing House (ACH) debit entries, or processed as substitute checks (Check 21).

Federal government ACH entries are governed by 31 C.F.R. Part 210, which incorporates the 2007 ACH Rules published by The Electronic Payments Association (NACHA), with certain exceptions. Under Part 210, checks can only be converted to ACH debit entries if the agency customer submitting the check for payment (the "recipient" in ACH terms) has been provided the requisite notice. Proper notice ensures that the "recipient" has authorized the ACH transaction, as required. To ensure proper authorization, agencies participating in the OTCnet check capture process, must provide agency customers the following Notices:

  • Notice Required on Billing Statements. When the payor can submit a check payment to the agency by mail, or to an unstaffed agency location (e.g., agency dropbox), the following Notice must be added to agency billing statements that generate the submission of check payments: Notice Required on Billing StatementsPDF file. The Notice must be provided in a clear and conspicuous manner.

  • Notice Required at Point-of-Purchase. When the agency customer presents a check to the agency at a staffed point-of-sale location where the check is scanned by the agency representative (and the original check is returned to the customer), the following Notice must be posted by the agency at the location in a prominent and conspicuous manner, and the agency must provide the customer with a copy of the Notice at the time of the transaction: Notice Required at Point-of-PurchasePDF file.

  • Notice Required for Back Office Conversion Entries. When the agency accepts a check from an agency customer at a location where the check is not scanned in front of the customer (i.e., the check is scanned by the agency in a back office, and not returned to the customer), the following Notice must be posted by the agency in a prominent and conspicuous manner at the location where the check is accepted, and the agency must provide the customer with a copy of the Notice at the time of the transaction. Notice Required for Back Office Conversion EntriesPDF file.

For more information, please contact FMS.OTCinformation@citi.com.


   Last Updated:  April 03, 2014