,,ii #aahth ,,congress #ast ,session ,s4 #bcdh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ah1 #bjbc,mr4 ,van ,hollen 7for himself and ,ms4 ,warren7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,expedited ,funds ,availability ,act to require that funds deposited be available for withdrawal in real-time1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,payments ,modernization ,act of #bjbc4 #b4 ,findings and purposes 7a7 ,findings ,congress finds the following3 7#a7 ,families in the ,united ,states spend billions of dollars in overdraft fees in part because they are waiting for checks to clear over a weekend or holiday4 7#b7 ,the inefficient payment system in the ,united ,states drives families1 especially those living paycheck to paycheck1 to use high-cost financial services to access funds more rapidly4 7#c7 ,a faster payment system would provide people of the ,united ,states immediate access to funds and relief for those who overdraw their accounts because their deposits are not available in real-time1 helping families potentially save billions of dollars each year4 7#d7 ,the ,board of ,governors of the ,federal ,reserve ,system has created ,fed,now1 an instant payment infrastructure that allows participants to send and receive funds in real time4 7#e7 ,financial services providers have a duty to make payments available as soon as it is reasonably possible4 7b7 ,purposes ,the purposes of this ,act are-- 7#a7 to ensure that the ,united ,states has a safe1 fast1 efficient1 equitable1 and fair payment system2 and 7#b7 to clarify that financial institutions shall prioritize efficient payments1 except in cases in which fraudulent activity is suspected4 #c4 ,definition ,in this ,act1 the term real-time has the meaning given the term in section #fjb of the ,expedited ,funds ,availability ,act 7#ab ,u4,s4,c4 #djja71 as amended by section #d7;a7 of this ,act4 #d4 ,requirement that funds deposited be available for withdrawal in real-time 7a7 ,definitions 7#a7 ,in general ,section #fjb of the ,expedited ,funds ,availability ,act 7#ab ,u4,s4,c4 #djja7 is amended-- 7,a7 by redesignating paragraphs 7#bj7 through 7#be7 as paragraphs 7#ba7 through 7#bf71 respectively2 and 7,b7 by inserting after paragraph 7#ai7 the following3 7#bj7 ,real-time ,the term real-time-- 7,a7 means any time2 and 7,b7 includes a ,saturday1 ,sunday1 and a legal holiday4 4 7#b7 ,technical and conforming amendment ,section #c of the ,check ,clearing for the #bast ,century ,act 7#ab ,u4,s4,c4 #ejjb7b77;,d77iv77 is amended by striking section #fjb7bd7 and inserting section #fjb7be74 7b7 ,expedited funds availability schedules ,section #fjc of the ,expedited ,funds ,availability ,act 7#ab ,u4,s4,c4 #djjb7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the subsection heading1 by striking ,next ,business ,day and inserting ,real-time2 7,b7 in paragraph 7#a7-- 7i7 in the matter preceding subparagraph 7,a71 by striking ,except as provided in subsection 7e7 and in section #fjd1 in and inserting ,in2 and 7ii7 in the matter following subparagraph 7,b7 by striking not later than the business day after the business day on which and inserting in real-time when2 and 7,c7 in paragraph 7#b71 in the matter preceding subparagraph 7,a71 by striking not later than the business day after the business day on which and inserting in real-time after2 7#b7 by striking subsection 7b7 and inserting the following3 7b7 ,permanent ,schedule ,funds deposited in an account at a depository institution by a check drawn on a local or nonlocal originating depository institution shall be available for withdrawal in real-time4 2 7#c7 by striking subsections 7c7 and 7d72 7#d7 by redesignating subsections 7e7 and 7f7 as subsections 7c7 and 7d71 respectively2 7#e7 in subsection 7c71 as redesignated by paragraph 7#d7-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,a7-- 7,i7 by striking ,not more than #d business days shall intervene between the business day a and inserting ,a2 7,,ii7 by inserting a comma after subparagraph 7,b72 7,,iii7 by striking is2 and 7,,iv7 by striking and the business day on which funds from such deposit are available for withdrawal and inserting shall be available for withdrawal in real-time2 and 7ii7 in subparagraph 7,b71 in the subparagraph heading1 by striking paragraph and inserting subparagraph2 and 7,b7 in paragraph 7#b7-- 7i7 by striking 1 7b71 and 7c7 and inserting and 7b72 and 7ii7 in the paragraph heading1 by striking temporary and permanent schedules and inserting permanent schedule2 and 7#f7 in subsection 7d77#b71 as redesignated by paragraph 7#d71 by striking 7c71 or 7e7 and inserting or 7c74 7c7 ,safeguard exceptions ,section #fjd of the ,expedited ,funds ,availability ,act 7#ab ,u4,s4,c4 #djjc7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#a7-- 7i7 in the paragraph heading by striking ,next business day and inserting ,real-time2 and 7ii7 in the matter following subparagraph 7,d7 by striking on the business day after the business day on which such cash or funds are deposited or1 in the case of a wire transfer1 on the business day after the business day on which and inserting in real-time after such cash or funds are deposited or1 in the case of a wire transfer1 in real-time after2 7,b7 in paragraph 7#b7-- 7i7 by striking 1 #fjc7;c71 or paragraphs and inserting paragraph2 and 7ii7 by striking #fjc7;e7 and inserting #fjc7;c72 and 7,c7 by striking paragraph 7#c77;,b7 and inserting the following3 7,b7 any such funds deposited in excess of such amount shall be available for withdrawal in real-time4 2 7#b7 in subsection 7b71 in the matter preceding paragraph 7#a71 by striking 7c71 or 7e7 and inserting or 7c72 7#c7 in subsection 7c77#a71 by striking 7c71 and 7e7 and inserting and 7c72 and 7#d7 in subsection 7d71 in the matter preceding paragraph 7#a71 by striking 7c71 and 7e7 and inserting and 7c74 7d7 ,miscellaneous provisions ,section #fjg of the ,expedited ,funds ,availability ,act 7#ab ,u4,s4,c4 #djjf7 is amended-- 7#a7 by striking subsections 7a7 and 7b72 and 7#b7 by redesignating subsections 7c7 through 7f7 as subsections 7a7 through 7d71 respectively4 7e7 ,regulations and reports by ,board ,section #fji of the ,expedited ,funds ,availability ,act 7#ab ,u4,s4,c4 #djjh7 is amended-- 7#a7 in subsection 7b77#h71 by striking 1 pursuant to the study under subsection 7f72 7#b7 by striking subsections 7d7 and 7f72 and 7#c7 by redesignating subsection 7e7 as subsection 7d74 7f7 ,,gao study ,not later than #ij days after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall publish a study on the impact of payment delays on disadvantaged communities1 including underbanked communities1 and future access to and use of financial services by those communities4 7g7 ,federal ,reserve report ,not later than #ij days after the date of enactment of this ,act1 the ,board of ,governors of the ,federal ,reserve ,system shall submit to ,congress a report on the progress of the ,fed,now instant payment infrastructure1 including-- 7#a7 any obstacles encountered with respect to institutions opting to utilize ,fed,now or participants using ,fed,now2 and 7#b7 any challenges anticipated with respect to expanding the utilization of ,fed,now4