§501 Liability of Federal reserve or member bank for certifying check when amount of deposit was inadequate

Summary

No officer, director, agent, or employee of a Federal Reserve bank or of a member bank may certify a check unless the person or business that wrote the check has at least that amount on deposit at the bank when the check is certified. If an authorized bank official properly certifies a check and the drawer has the money, the bank must pay it. If a bank official certifies a check without enough funds, the bank can be punished. The Board of Governors can penalize Federal Reserve banks. If the member bank is a national bank, the Comptroller of the Currency can take action. For other member banks, the Board can impose penalties under federal law.