(Note: These requirements were written for outside
counsel but also apply to experts and LSS providers.)
Electronic Funds Transfer (EFT) Requirements
Payments by the FDIC under legal referrals may be made by check or
electronic funds transfer (EFT) at the option of the FDIC. If payment is
made by EFT, the FDIC may, at its option, also forward the associated
payment information by electronic transfer. As used herein, the term "EFT"
refers to the funds transfer and may also include the information transfer.
Mandatory Submission of EFT Information
Outside counsel is required, as a condition to any payment under a legal
referral, to provide the FDIC with the information required to make payment
by EFT as described below, unless the FDIC determines that submission of the
information is not required. Outside counsel shall provide EFT information
as described below unless waiver is granted. This information shall apply to
all legal referrals outside counsel may receive. If outside counsel has
multiple remittance offices, EFT information may be required for each
Outside Counsel's EFT Information
Prior to submission of the first request for payment under a legal
referral, outside counsel shall confirm the accuracy of EFT information
previously provided the FDIC. If the EFT information changes, outside
counsel is responsible for providing the changed information to the FDIC.
Required EFT Information
The FDIC may make payment by EFT through either an Automated Clearing
House (ACH) subject to the banking laws of the United States or the Federal
Reserve Wire Transfer System at the FDIC's option. Outside counsel shall
provide the following information for both methods in a form acceptable to
the FDIC. See the attached form.
The tax identification number.
Outside counsel's name and remittance address and account number at
outside counsel's financial agent.
The signature (manual or electronic, as appropriate), title, and
telephone number of the outside counsel official authorized to provide
For ACH payments only:
Name, address, and 9-digit Routing Transit Number of outside counsel's
Outside counsel's account number and the type of account (checking,
saving, or lockbox).
For Federal Reserve Wire Transfer System payments only:
Name, address, telegraphic abbreviation, and the 9-digit Routing
Transit Number for outside counsel's financial agent.
If outside counsel's financial agent is not directly on-line to the
Federal Reserve Wire Transfer System and, therefore, not the receiver of
the wire transfer payment, outside counsel shall also provide the name,
address, and 9-digit Routing Transit Number of the correspondent financial
institution receiving the wire transfer payment.
Suspension of Payment
Notwithstanding the provisions of the LSA, the FDIC is not required to
make any payment under a legal referral until after receipt, by the
appropriate FDIC office, of the correct EFT payment information from outside
counsel, a certificate is submitted or a waiver is granted. Until receipt of
the correct EFT information, any invoice shall be deemed not to be a valid
If the EFT information changes after submission of correct EFT
information, the FDIC shall begin using the changed EFT information no later
than the 30th day after its receipt to the extent payment is made by EFT.
However, outside counsel may request that no further payments be made until
the changed EFT information is implemented by the FDIC.
Outside Counsel EFT Arrangements
Outside counsel shall designate a single financial agent capable of
receiving and processing the electronic funds transfer using the EFT methods
described above. Outside counsel shall pay all fees and charges for receipt
and processing of transfers.
Liability for Uncompleted or Erroneous Transfers
If an uncompleted or erroneous transfer occurs because the FDIC failed to
use the outside counsel-provided EFT information in the correct manner, the
FDIC remains responsible for (i) making a correct payment and (ii)
recovering any erroneously directed funds.
If an uncompleted or erroneous transfer occurs because outside
counsel-provided EFT information was incorrect at the time of FDIC release
of the EFT payment transaction instruction to the Federal Reserve System,
If the funds are no longer under the control of the FDIC, the FDIC is
deemed to have made payment and outside counsel is responsible for
recovery of any erroneously directed funds; or
If the funds remain under the control of the FDIC, the FDIC retains
the right to either make payment by mail or suspend the payment in
accordance with provision above.
EFT and Assignment of Claims
If outside counsel assigns the proceeds of a legal referral, the assignee
shall provide the assignee EFT information required herein. In all respects,
the requirements of this provision shall apply to the assignee as if it were
outside counsel. EFT information that shows the ultimate recipient of the
transfer to be other than outside counsel, in the absence of a proper
assignment of claims acceptable to the FDIC, is incorrect EFT information
for purposes of these requirements.
If outside counsel does not wish to receive payment by EFT methods for
one or more payments, outside counsel may submit a request to the FDIC to
refrain from requiring EFT information or using the EFT payment method. The
decision to grant the request is solely that of the FDIC.
Change of EFT Information by Financial Agent
Outside counsel agrees that outside counsel's financial agent may notify
the FDIC of a change to the routing transit number, outside counsel account
number, or account type. The FDIC shall use the changed data in accordance
with the provisions above. Outside counsel agrees that the information
provided by the agent is deemed to be correct information as if it were
provided by outside counsel. Outside counsel agrees that the agent's notice
of changed EFT data is deemed to be a request by outside counsel in
accordance with the provisions that no further payments be made until the
changed EFT information is implemented by the FDIC.