Cash Item Law and Legal Definition

According to 12 CFR 210.2 [Title 12 -- Banks and Banking; Chapter II -- Federal Reserve System; Subchapter A -- Board of Governors of the Federal Reserve System; Part 210 -- Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through Fedwire (Regulation J); Subpart A -- Collection of Checks and Other Items by Federal Reserve Banks], cash item means –

“(1) A check other than one classified as a noncash item under this section; or

(2) Any other item payable on demand and collectible at par that the Reserve Bank that receives the item is willing to accept as a cash item. Cash item does not include a returned check.”