Farm Credit Services of America v. American State Bank

MELLOY, Circuit Judge.

American State Bank (“American”) returned twenty-three payable-through drafts to Farm Credit Services of America (“Farm Credit”) which were drawn on Farm Credit and payable-through Wells Fargo Bank Nebraska N.A.(“Wells Fargo”). Farm Credit filed suit against American for wrongful claim of late return. In a motion to dismiss, American argued that Farm Credit’s complaint was barred by Availability of Funds and Collection of Checks (Regulation CC) 12 C.F.R. Part 229 (2002), which requires the payable-through bank, in this case Wells Fargo, to provide timely notice of…