Ill. Admin. Code tit. 38 § 650.150

Current through Register Vol. 48, No. 50, December 13, 2024

Section 650.150 - Recurring Direct Deposits

a) Where a direct deposit may not be processed by the recipient's financial institution, such institution shall promptly return such funds to the State. The Comptroller shall draw a warrant for payment to the recipient upon the presentation of a voucher of the paying State Agency for such payment.

b) If a direct deposit is made in error or on behalf of a recipient who is not entitled to receive such direct deposit, by reason of death or otherwise, the paying State Agency shall initiate a correcting entry (either debit or credit) in accordance with the Operating Rules of the National Automated Clearing House Associations. For the purposes of this Part, the Operating Rules of the National Automated Clearing House Associations are incorporated by reference as of November 1, 1983. The paying State Agency, upon detecting an error requiring a correcting entry, must notify both the recipient and the recipient's financial institution of its intended action. Upon the receipt of funds representing a return of a credit entry, the Comptroller will provide the paying State Agency with the information necessary to correct or complete the transaction.

c) If, upon processing the correcting entry, the recipient's account is closed or is insufficient to cover the entire amount to be returned, the paying State Agency and the recipient's financial institution shall be responsible for initiating the appropriate action to obtain recoupment. The Comptroller will notify the paying State Agency upon being made aware of any problems or deficiencies in returning funds representing the correcting entry.

Ill. Admin. Code tit. 38, § 650.150