Chips Participant Agreement
15 While The Clearing House did not consider that this revision of the EFT Act had created significant uncertainty about the legal basis of CHIPS, 63 subsequent complaints from The Clearing House and New York State dispelled this uncertainty. In March 2012, CHIPS Rule 3 has been amended to read in part: (a) A participant`s rights and obligations as a subscriber or received to a chip payment message are subject to these rules and New York State laws, including Section 4-A of the New York Code of Commerce, that the payment message be part of a bank transfer that falls within a bank transfer within the meaning of Section 919. Electronic Fund Transfer Act, 15 U.S.C 1693o-1. (b) The rights and obligations of all other parties to a transfer of funds as part of a CHIPS payment message are governed by these rules and by New York State law, including Section 4-A of the New York Code of Commerce, to the broadest extent permitted by law. In the case of a money transfer that is a transfer of funds under Section 919 of the Electronic Fund Transfer Act, 15 U.S.C 1693o-1, or to an amended estate provision from time to time, New York law, including Section 4A of the Uniform Commercial Code, is governed by New York law, except in the event of an inconsistency between New York law and the Electronic Fund Transfer. , in this case, the electronic transfer law applies. In addition to the changes to the chip rules, the New York legislature has taken steps to obtain, as far as possible, the applicability of Section 4-A to transfers. 63 First, only a very small percentage of CHIPS payments would be for consumers, of whom only U.S. and foreign beneficiaries would be covered by the section. , Section 1073 deals only with rights and obligations between a U.S. consumer operator and its mailing bank.
Section 1073 does not deal with the rights and obligations of banks to each other, as the EFT Act remains silent on these issues. In the absence of contrary legislation, a court would likely give the chip rules full effect on issues such as the finalization of CHIPS payment messages and other rights and obligations of the issuing and receiving subscribers between these chip participants. Finally, Section 1073 did not affect the effectiveness of the chip rules under the DLCIA clearing provisions. 14 CHIPS recently incorporated the Electronic Data Exchange (EDI) feature into its payment message format. EDI allows participants to pass on business information (for example. B the purpose of a payment) at the same time as their electronic money transfers. Chips is led by a 10-member board of directors, made up of directors of major banks, which sets rules and fees, which authorizes and re-evaluates participants.