Apcs PDF

As amended to
22 October 2012
Version E044
AUSTRALIAN PAYMENTS CLEARING ASSOCIATION LIMITED

ABN 12 055 136 519
A Company limited by Guarantee
PROCEDURES
for
AUSTRALIAN PAPER CLEARING SYSTEM

(CS1)
Commenced 2 December 1993
Copyright 1993 - 2012 Australian Payments Clearing Association Limited

ABN 12 055 136 519
Australian Payments Clearing Association Limited

Level 6, 14 Martin Place, SYDNEY NSW 2000
Telephone: (02) 9221 8944 Facsimile: (02) 9221 8057
PROCEDURES
FOR

(CS1)
INDEX
PARTS
1
Page number
PRELIMINARY
1.1
Definitions
Interpretation
Inconsistency with Articles or Regulations
Governing Law
Copyright
1.1
1.6
1.6
1.6
1.6
EFFECT
2.1
PROCEDURES
2.1
AMENDMENT
2.1
SCHEDULES
1
APPROVED EXCHANGE TIMES
S1.1
Table 1 Monday to Thursday

Table 2 Friday
Table 3 Locations For Exchange Of Items
S1.1
S1.1
S1.1
REPRESENTATION ARRANGEMENTS PUBLISHED MINIMUM REQUIREMENTS S2.1
COMPLETION OF FLOW CHARTS FOR REPRESENTATION ARRANGEMENTS
S3.1
1.
2.
3.
4.
5.
S3.1
S3.1
S3.1
S3.3
S3.3
Purpose of Flow Charts

Responsibilities for Preparation of Flow Charts
Preparation of Flow Charts
Submission of Flow Charts to Management Committee
Examples of Flow Charts
PROCEDURAL RULES GOVERNING THE CONDUCT OF CLEARINGS, SETTLEMENT

AND OTHER MATTERS IN REGIONS
S4.1
Rule 1 Preliminary
Application
S4.1
S4.1
(i)
Australian Paper Clearing System PROCEDURES

Index
Rule 2 Attendance at Specified Locations

Representation at Specified Location
Time and Attendance
Punctuality and Exclusion
Consequences of Exclusion
S4.1
S4.1
S4.1
S4.2
S4.2
Rule 3 Exchanges
Delivery Prior to Exchange Times
Attendance at Exchanges
Extension of Time
Independent Exchanges
Unacceptable Items
Batch Listings
Exchange Listings
Presentation of Work (Rules 3.8(c), (d)(iv), (e) & (f) are confidential)
Comparison of Items
Trace Requests (Confidential)
Processing of Exchanged Items
S4.2
S4.2
S4.2
S4.2
S4.3
S4.3
S4.3
S4.4
S4.4
S4.6
S4.6
S4.7
Rule 4 Errors (Confidential)

Errors And Surplus Or Missing Items
Further Provisions Relating to Errors and Surplus or Missing Items
Missorted Items
Further Provision Relating to Unlisted Missorted Items
Interest Adjustments
Further Provision Relating to Interest
Losses
S4.7
S4.7
S4.10
S4.10
S4.10
S4.10
S4.11
S4.11
Rule 5 Region General Balance
S4.12
Rule 6 Other Procedural Requirements

Debit Item Clearings
Credit Clearings
Discontinuance of Encoding Credit Items
Exchange of Other Articles
S4.15
S4.15
S4.16
S4.16
S4.17
PROCEDURAL RULES GOVERNING SPECIFIED LOCATION OR OTHER

OPERATIONS DURING STRIKES, STOP WORK MEETINGS, OTHER INDUSTRIAL
ACTION AND PROCESSING FAILURES
S5.1
Rule 1 Purpose and Policy
Purpose of Schedule 5
Underlying Policy of Participating Members
LVSS BCP Arrangements
S5.1
S5.1
S5.1
S5.1
Rule 2 Powers and Procedures

Powers of Chief Executive Officer
Committees - Functions and Procedures
Agreed Procedures Following Advice of Disabling Event
S5.1
S5.1
S5.2
S5.2
Rule 3 Inability to Settle
S5.4
Rule 4 Specified Location
S5.5
(ii)

Index
PROCEDURES FOR EXCHANGE OF OTHER ARTICLES AT SPECIFIED

LOCATIONS
S6.1
1.
2.
S6.1
S6.1
Introduction
National Policy
PROCEDURAL RULES GOVERNING OUTWARD CLEARINGS
S7.1
APPROVED REPRESENTATION ARRANGEMENTS
S8.1
1.
2.
S8.1
S8.1
Approved Inward Clearing Representation Arrangements

[Deleted]
CONTACT NUMBERS OF THE RESERVE BANK OF AUSTRALIA RITS LOW VALUE

SETTLEMENT SERVICE
S9.1
10
OTHER GENERAL AGREEMENTS BETWEEN INSTITUTIONS (Confidential)
S10.1
1.
For-Value Paper Exchanges Between Institutions
S10.1
1.1
1.2
1.3
1.4
1.5
S10.1
S10.2
S10.2
S10.3
S10.3
2.
Remittances & Special Clearances

2.1
2.2
2.3
2.4
2.5
2.6
3.
Special Clearances and Special Answers

Dishonoured Debit Items
Rubber Or Metal Stamps On Debit Items
Debit Items Lost Between Collecting & Paying Institutions
Lost Commonwealth Government Cheques
Undomiciled Debit Items Received Through The Exchanges
Miscellaneous
3.1
3.2
3.3
3.4
3.5
3.6
4.
Restriction on For-Value Paper Exchanges

[Deleted]
Credit Transfers to Accounts at Another Institution
[Deleted]
[Deleted]
S10.3
S10.4
S10.13
S10.24
S10.24
S10.27
[Deleted]
S10.30
Warrants
S10.30
Overseas Issued On-Demand Australian Dollar Denominated (AUD) Drafts S10.30
[Deleted]
S10.30
[Deleted]
S10.30
Missorts Subsequently Lost
S10.30
Telegraphic Transfers Between Institutions
S10.31
Fraud Detection and Prevention
S10.31
4.1
4.2
4.3
4.4
4.5
4.6
S10.31
S10.31
S10.34
S10.35
S10.36
S10.36
Introduction
Suspected Counterfeit Cheque
Lost, Stolen, Forged or Counterfeit Cheques
Dishonoured Debit Items - Potential Fraud
Monitoring of Dishonours
Precautions Regarding Provision of Special Answers
(iii)

Index
5.
6.
11
Third Party Cheque Conversion - Request for Investigation/Claim
S10.36
5.1
5.2
S10.36
S10.37
Application
General Guidelines
Use of Carrier Envelopes for Mutilated or Damaged Items
S10.38
6.1
6.2
S10.38
S10.38
Application
General Rules
PROCEDURES FOR ELECTRONIC PRESENTMENT AND ELECTRONIC DISHONOUR

(Confidential, except for Preamble)
S11.1
Preamble
Application
General effect
Interpretation and definitions
S11.1
S11.1
S11.1
S11.1
1.
Electronic Presentment
General
Exchange of Data
Responsibility
Exchange of Paper
Settlement
Presentment Request - Debit Item Lost in Transit
S11.3
S11.3
S11.3
S11.4
S11.5
S11.6
S11.6
2.
Electronic Dishonours (and Return Messages)

General
Exchange of Data
Responsibilities
Debit Items other than Financial Institution Cheques, Australia Post Money Orders,
Warrants and Travellers' Cheques
Financial Institution Cheques
Australia Post Money Orders
Warrants
Travellers Cheques
Electronic Dishonour Mailing Advice
Settlement
Unprocessable Items
S11.6
S11.7
S11.7
S11.8
S11.9
S11.12
S11.13
S11.13
S11.14
S11.15
S11.15
S11.15
2A.
Acceptance of Otherwise Out-Of-Time Dishonours
S11.16
3.
Electronic Dishonour Refusals

General
Exchange of Data
Responsibilities
Electronic Dishonour Refusal Mailing Advice
Settlement
S11.16
S11.17
S11.17
S11.17
S11.18
S11.18
4.
Contingency Procedures
Exchange of Data
Responsibilities
Options
Physical Medium Exchange Standards
Read/Write Format Standards for Physical Medium
Contingency Exchange Arrangements
S11.18
S11.19
S11.19
S11.19
S11.20
S11.20
S11.20
(iv)

Index
Bilateral Testing of Contingency Exchange Arrangements

Contingency Procedures Testing Certificate
Standards for Email File Exchange and Security
Email File Exchange Contacts Database
S11.20
S11.21
S11.21
S11.22
5.
Disabling Events
S11.23
6.
Rejected Items
Rejected Electronic Presentment Record
Rejected Electronic Dishonour Record
Rejected Voucher Required Record
Rejected Electronic Dishonour Refusal Record
S11.23
S11.23
S11.24
S11.25
S11.25
7.
Holiday Calendar
Business Days
Holiday Calendar
Publication
Responsibility
Adjustments to Holiday Calendar
Effective Date of the Holiday Calendar
S11.26
S11.26
S11.26
S11.26
S11.26
S11.27
S11.27
8.
Capture Validation Rules Database

Database Management and Purposes
Sending Capture Validation Rules to the Company
Distribution of Capture Validation Rules
Updating Capture Validation Rules
S11.27
S11.27
S11.27
S11.28
S11.28
APPENDICES
Appendix A
A1
A2
A3
A4
A5
A6
A7
A8
A9
A10
A11
Inter-Institution Vouchers (Confidential)

Warrant
Drawing for Dishonoured Item Returned Direct
Advice of Dishonoured Item Returned Direct
Drawing for Direct Remittance
Advice of Direct Remittance
Drawing Debit
Credit Transfer
Error Adjustment Voucher (Debit)
Error Adjustment Voucher (Credit)
Batch Header (Debit)
Batch Header (Credit)
A.1
A.3
A.4
A.5
A.6
A.7
A.8
A.9
A.10
A.11
A.12
A.13
Appendix B
Transaction Codes (Confidential)
B.1
Appendix C
Forms (Confidential)
C.1
C1
C2
C3
C4
C5
C6
C7
Special Answer Facsimile Request Form

Trace Request Form
Not-For-Value Batch Header - Debit
Electronic Dishonour Mailing advice
Presentment Request - Rejected Technically Invalid Item
Advice of Suspected Counterfeit Cheque
(v)
C1.1
C2.1
C3.1
C4.1
C5.1
C6.1
C7.1

Index
C8
C9
C10
C11
C12
C13
C14
Appendix D
D1
D2
D3
D4
D5
D6
D7
D8
D9
D10
D11
D12
D13
Third Party Cheque Conversion - Request for Investigation/Claim*

Presentment Request - Unprocessable Item
Notification of Encoding Error
Special Answer Request by Personal Presentation
Customer Notice of Inward Dishonour
Bill for Collection
C8.1
C9.1
C10.1
C11.1
C12.1
C13.1
C14.1
Centralised Contact Points (Confidential)

Processing Centre Contact Points
Special Answers Contact Points
Trace Request Contact Points
EP&D Presentment Request Contact Points
EP&D Dishonours/Voucher Required Advice Contact Points
EP&D Dishonour Refusal Advice Contact Points
Suspected Counterfeit Cheques Contact Points
Replacement Cheques Contact Points
Third Party Cheque Conversion Contact Points
Inter-organisation Compensation Contact Points
Special Answer Requests by Telephone Contact Points
Special Answers - Delegated Non-drawee Issuers
Presentment Request - Unprocessable Item
D1.1
D2.1
D3.1
D4.1
D5.1
D6.1
D7.1
D8.1
D9.1
D10.1
D11.1
D12.1
D13.1
Appendix E
EP&D File Specifications (Confidential)
E.1
Appendix F
CS1 Value, Non Value and Reconciliation Control Messages

(Confidential)
F.1
Appendix G1
Appendix G2
Gazette Notice
Gazette Notice
G1.1
G2.1
Appendix H
Discontinued Exception Items List [Deleted]
Appendix I
Destination BSB Numbers for Encoding Overseas On-Demand AUD Drafts
I.1
Appendix J
EP&D Holiday Calendar Specifications
J.1
Appendix K
Disabling Events Guidelines

(Confidential, except for certain parts)
K.1
Appendix L1
Appendix L2
Replacement Cheques: Facsimile Request Form

Replacement Cheques: Draft Letter to Drawer of Missing Cheque
Appendix M
Processing Difficulty Notification Forms
(vi)
H.1
L1.1
L2.1

Index
M1
M2
APCS Processing Difficulty Notification

APCS and BECS Processing Difficulty Notification
M1.1
M2.1
Appendix N
Primary Exchange Arrangements Matrix (Confidential)
N.1
Appendix O
Contingency Exchange Arrangements Matrix (Confidential)
O.1
Appendix P
Contingency File Exchange
P.1
P1
P2
Contingency File Exchange Form

Email File Exchange Contacts Lodgement Form
Email File Exchange Public Key Lodgement Form
Contingency Procedures Testing Certificate (Confidential)
P1.1
P2.1
P2.2
P3.1
Appendix Q
Carrier Envelope Specifications (Confidential)
Q.1
Appendix R
Exchange Summary [Deleted]
R.1
Appendix S
Capture Validation Rules Lodgement (Confidential)
S.1
P3
(vii)

Part 1
Preliminary
AUSTRALIAN PAYMENTS CLEARING ASSOCIATION LIMITED

ABN 12 055 136 519
A Company limited by Guarantee

PROCEDURES
for
(CS1)
PART 1
PRELIMINARY
Definitions
1.1
The following words have these meanings in these Procedures unless the contrary intention
appears.
Advice of Suspected Counterfeit Cheque means a facsimile advice substantially in the form
of Appendix C7.
Inserted
effective 30/9/99
Amount Encoded Paper means Items conforming to Australian Standards and encoded with
E-13B MICR characters.
Bill for Collection means a notice in the form of Appendix C14, which may be used by an
Institution to process a bill for collection.
Last amended
effective 25/7/08
Board means the board of directors of the Company.

BSB Number means in relation to a Participating Member, non-member Appointor or other
Institution its BSB Number (if any) assigned to it by the Company.
Last amended
effective 4/12/95
Capture Validation Rules has the meaning set out in Rule 8.1 of Schedule 11
Inserted
effective 9/12/2009
Carrier Envelope means an envelope which complies with the specifications set out in
Appendix Q.
Inserted
effective 11/10/06
Chief Executive Officer means the person appointed as chief executive officer of the
Company under Article 14.20 and a reference in these Procedures to the Chief Executive Officer
includes a reference to a person nominated by the Chief Executive Officer to be responsible for
the matter referred to in that reference.
Collator [deleted effective 22/10/12]
Deleted
effective 22/10/12
Company means Australian Payments Clearing Association Limited (ABN 12 055 136 519).
Last amended
effective 30/10/02
Contingency Exchange Testing Schedule means the schedule published by the Company
and approved by the Management Committee as required but certainly at a minimum of every
two years, showing testing partners for all APCS Tier 1A Participating Members for mandatory
calendar half year testing of contingency exchange arrangements pursuant to Rule 4.11 of
Schedule 11 of these Procedures. The schedule will be published on the Companys extranet.
Last amended
effective 25/7/08

1.1
[ABN 12 055 136 519]

Amendment No. E044, issued as CS1/r&p/003.12

Part 1
Preliminary
Contingency File Exchange Form means a document, substantially in form of Appendix P1,
used by a Sending Institution (as defined in Schedule 11 of these Procedures) to advise a
Receiving Institution (as defined in Schedule 11 of these Procedures) that a pending/expected
file exchange will take place using a bilaterally agreed contingency exchange arrangement (as set
out in Appendix O).
Inserted
effective 30/6/03
Counterparty means a Tier 1 Participating Member which receives Items exchanged pursuant
to these Procedures, and which is the party identified in the File Settlement Instruction submitted
by an Originator in accordance with these Procedures and the requirements of the RITS Low
Value Settlement Service, and includes, for the purposes of these Procedures, a Tier 1B
Participating Member on whose behalf a Tier 1A Participating Member exchanges Items.
Inserted
effective 22/10/12
Credit Items includes all paper credit transfers addressed to a bank or a non-bank financial
institution and any other paper credit transfers which the Management Committee at any time
determines are widely accepted (or approved) for exchanges by Participating Members at that
time, except as may be specifically excluded by the Regulations or these Procedures.
Last amended
effective 16/08/04
Customer Notice of Inward Dishonour means a notice in the form of Appendix C13, which
may be used by a Participating Member to notify a customer of the dishonour of a cheque
deposited into an account.
Inserted effective
15//01/07
Debit Items includes all cheques and other paper drawings drawn on or addressed to a bank or
a non-bank financial institution, travellers cheques, money orders and any other paper drawings
which the Management Committee at any time determines are widely accepted (or approved) for
exchange by Participating Members at that time, except as may be specifically excluded by the
Regulations or these Procedures.
Last amended
effective 16/08/04
Deposit Financial Institution means the financial institution with which the holder of a Debit
Item lodges it or causes it to be lodged for collection or, where that financial institution is not a
Participating Member and where the context so allows, that financial institution's Clearing
Representative.
Deputy Regional Co-ordinator means the Deputy Regional Co-ordinator appointed in
accordance with Regulation 9.11.
Amended effective
30/01./06
Disabling Event means:

(a)
a processing failure or a manifestation of industrial action which affects, or may affect,

the ability of Participating Members to participate to the normal and usual extent in
exchanges in one or more Regions; or
(b)
a total or partial loss of, or any degree of inaccessibility to, one or more Specified
Locations in one or more Regions which affects Participating Members and which is of
such a nature that normal and usual operation or facilities cannot be provided.
Last amended
effective 30/10/02
Disabled Participating Member has a corresponding meaning.

Discontinued Exception Item [deleted]
Deleted effective
24/3/03
Encoding Error, in relation to an Item, occurs when the amount encoded in respect of the
Item differs from the amount that is expressed, in numerical figures on the Item, as the amount to
be paid or credited. However, notwithstanding the immediately preceding sentence of this
definition, there is no encoding error within the meaning of these Procedures if the amount
encoded is, by virtue of section 15 Cheques Act 1986, the sum ordered to be paid by the Item.
Last amended
effective 7/9/2000

1.2
[ABN 12 055 136 519]


Part 1
Preliminary
Error of Magnitude is an error (or a series of errors on the one exchange) of or exceeding $2
million or such other amount as may be determined from time to time by the Management
Committee.
Last amended
effective 22/01/09
Exchange Settlement Funds has the meaning given in the RITS Regulations.
Inserted effective
22/10/12
Exchange Summary [Deleted effective 22/10/12]]

Exchange Summary Data File Transfer Facility [Deleted effective 22/10/12]
Deleted effective
22/10/12
Deleted effective
22/10/12
File Recall Instruction means a file in the format prescribed by the Reserve Bank of Australia
and complying with the specifications for the RITS Low Value Settlement Service which can be
accessed via a link on the Companys extranet.
Inserted effective
22/10/12
File Recall Response means a response to a File Recall Instruction generated by the RITS
Low Value Settlement Service.
Inserted effective
22/10/12
File Settlement Advice means an advice in relation to a File Settlement Instruction, generated
by the RITS Low Value Settlement Service.
Inserted effective
22/10/12
File Settlement Instruction means a file in the format prescribed by the Reserve Bank of
Australia and complying with the specifications for the RITS Low Value Settlement Service
which can be accessed via a link on the Companys extranet.
Inserted effective
22/10/12
File Settlement Response means a response to a File Settlement Instruction, generated by the
RITS Low Value Settlement Service
Inserted effective
22/10/12
Financial Institution in relation to Schedules 10 and 11 means a drawee Institution which is a

financial institution within the meaning of section 3(1) of the Cheques Act 1986. For the
avoidance of doubt, this includes any body corporate that is a bank, building society, credit
union or otherwise an authorised deposit-taking institution within the meaning of the Banking
Act 1959 (Cth).
Last amended
effective 19/6/00
Financial Institution Cheque in relation to Schedules 10 and 11 means a cheque drawn by a

Financial Institution on itself. For the avoidance of doubt, this includes instruments drawn by
banks (long known as bank cheques), building societies, credit unions and other authorised
deposit-taking institutions within the meaning of the Banking Act 1959 (Cth), where such
Financial Institution is both drawer and drawee.
Last amended
effective 19/6/00
Inter-organisation Compensation Rules means the document (as amended or replaced)

known as the Inter-organisation Compensation Rules, Publication No. 6.1 of the Company.
Inserted
effective 13/06/01
Items means Credit Items and Debit Items.

Institution in relation to Schedules 10 and 11 means a Participating Member, a non-member
Appointor, and any other person which participates in the activities contemplated and regulated
by Schedules 10 and 11.
Inserted
effective 1/2/95
Inward Clearings means Items which are received or to be received by or on behalf of a

Participating Member or non-member from another Participating Member or non-member. In
relation to a Representation Arrangement or a Representative under a Representation
Arrangement, "Inward Clearings" means Items which are received or to be received by the
relevant Appointor.
Inserted
effective 20/9/96
Ledger Financial Institution means:

(a)
in relation to a Credit Item, the financial institution to which the Credit Item is addressed;

1.3
[ABN 12 055 136 519]


Part 1
Preliminary
(b) in relation to a cheque, the financial institution upon which such cheque is drawn; and
Last amended
effective 30/10/02
(c)
Last amended
effective 30/10/02
in relation to a Debit Item (other than a cheque) the institution to which the Debit Item is
addressed.
LVSS means the RITS Low Value Settlement Service.
Inserted effective
22/10/12
LVSS BCP Arrangements means the contingency plan and associated documents published
by the Reserve Bank of Australia for the purposes of the RITS Low Value Settlement Service,
and which can be accessed via a link on the Companys extranet.
Inserted effective
22/10/12
LVSS Contact means the person or persons nominated by a Tier 1 Participating Member as
its primary contact for LVSS inquiries, and listed in Appendix D Centralised Contact Points.
Inserted effective
22/10/12
Management Committee means the committee constituted pursuant to Part 7 of the

Regulations.
Manager means the manager of a Region appointed in accordance with Regulation 9.16.
National Collator [deleted]
National Collator
deleted refer
Collator: Amended
Nine AM (9am) Funds means the multilateral net settlement of obligations arising from
previous days clearings of low value payments which occurs in RITS at around 9am each
business day that RITS is open.
Inserted effective
22/10/12
Originator means a Tier 1A Participating Member which, as a result of an outward exchange

of Items to another Tier 1 Participating Member, is responsible for the submission of a File
Settlement Instruction, and if necessary, a File Recall Instruction, in accordance with these
Procedures and the requirements of the RITS Low Value Settlement Service.
Inserted effective
22/10/12
Outward Clearings means Items which are delivered or to be delivered by or on behalf of a

Participating Member or non-member to another Participating Member or non-member. In
relation to a Representation Arrangement or a Representative under a Representation
Arrangement, "Outward Clearings" means Items which are delivered or to be delivered by or on
behalf of the relevant Appointor.
Inserted
effective 20/9/96
Panel of Experts [deleted effective 22/10/12]
Deleted effective 22/10/12
Participating Member means a body corporate who in accordance with the Regulations is a
participant in the Australian Paper Clearing System (CS1).
Presenting Member in relation to any Item means the Participating Member (whether or not
it is the Deposit Financial Institution in relation to that Item) which hands or delivers that Item to
a Receiving Member.
PDN means a Processing Difficulty Notification in the form of Appendix M, used by a
Participating Member to notify the Company of a Disabling Event in accordance with Appendix
K.
Inserted
effective 30/8/02
Quasi-Normal Exchange means an exchange which is as similar to a normal exchange as the

circumstances permit.
Real Time Gross Settlement means, in respect of settlement of payment obligations, the
processing and settlement of those payment obligations in real time and on a gross (not net)
basis.

1.4
Inserted
effective 22/6/98
[ABN 12 055 136 519]


Part 1
Preliminary
Receiving Member in relation to any Item means the Participating Member (whether or not it
is the Ledger Financial Institution in relation to that Item) to which such Item is in fact handed or
delivered by the Presenting Member.
Region means a region established pursuant to Regulation 9.1 and (where applicable) includes
a reference to the Specified Locations in that region.
Regional Collator [deleted]
Regional Collator deleted, refer Collator.
Amended, effective
4/12/95
Regional Co-ordinator means the Regional Co-ordinator appointed in accordance with

Regulation 9.11 and, where applicable, includes a Deputy Regional Co-ordinator.
Regulations means the regulations of Australian Paper Cleaning System (CS1) as prescribed
by the Company.
RITS means the Reserve Bank Information and Transfer System.
RITS Low Value Settlement Service means the Reserve Bank of Australias settlement file
transfer facility which must be used by:
(a)
each Tier 1A Participating Member to submit File Settlement Instructions and associated
File Recall Instructions; and
(b)
each Tier 1A Participating Member and Tier 1B Participating Member if it so elects, to

receive File Settlement Advices, File Settlement Responses and File Recall Responses.
RITS Regulations means the regulations regulating RITS as published by the Reserve Bank
of Australia.
RITS/RTGS [deleted effective 22/10/12]
Inserted effective
22/10/12
Last amended
effective 22/10/12
Inserted
effective 22/6/98
RTGS means Real Time Gross Settlement.

Settlement Session has the meaning ascribed to it in the RITS Regulations.
Specified Location in relation to a Region means the specified places or locations selected in
that Region for exchange of Items to take place.
Suspected Counterfeit Cheque has the meaning set out in Rule 4.2.1 of Schedule 10.
Last amended
effective 31/12/99
SWIFT means Society for Worldwide Interbank Financial Telecommunication s.c., having its
registered address at Avenue Adele, 1 B-1310 La Hulpe, Belgium.
Inserted
effective 31/12/99
SWIFT User Handbook means the set of rules and procedures governing the use of SWIFTs
services, published from time to time by SWIFT (in whatever medium) as the SWIFT User
Handbook.
Inserted
effective 31/12/99
Transaction Code means a numeric code enfaced on an Item to denote the sign and nature for
that Item.
Undomiciled Cheque means a Cheque without both a branch domicile and BSB Number, and
which the drawee Institution would not be able to identify any account to which it could be
posted.
Inserted
effective 11/9/06
Warrant has the meaning set out in Rule 3.1 of Schedule 10.
Inserted
effective 22/5/95

1.5
[ABN 12 055 136 519]


Part 1
Preliminary
Interpretation
1.2
In these Procedures:
(a)
words importing any gender include the other genders;
(b)
the word person includes a firm, a body corporate, an unincorporated association or an

authority;
(c)
the singular includes the plural and vice versa; and
(d)
a reference to a statute, code or the Corporations Act (or to a provision of a statute, code
or the Corporations Act) means the statute, the code, the Corporations Act or the
provision as modified or amended and in operation for the time being, or any statute, code
or provision enacted in lieu thereof and includes any regulation or rule for the time being
in force under the statute, the code, the Corporations Act or the provision.
Last amended
effective 16/08/04
1.3
Words defined in the Corporations Act have, unless the contrary intention appears, the same
meaning in these Procedures.
Last amended
effective 16/08/04
1.4
Words defined in the Regulations have, unless the contrary intention appears, the same meaning
in these Procedures.
1.5
These Procedures have been determined by the Management Committee and take effect on the
date specified by the Chief Executive Officer pursuant to Regulation 1.5.
1.6
Headings are inserted for convenience and do not affect the interpretation of these Procedures.
Inconsistency with Articles or Regulations

1.7
If a provision of the Regulations or these Procedures is inconsistent with a provision of the

Articles, the provision of the Articles prevails.
1.8
If a provision of these Procedures is inconsistent with a provision of the Regulations, the

provision of the Regulations prevails.
Governing Law
1.9
These Procedures are to be interpreted in accordance with the same laws which govern the
interpretation of the Articles.
Copyright
1.10
Copyright in these Procedures is vested in the Company.

The next page is 2.1

1.6
[ABN 12 055 136 519]


Part 2
Part 3
Part 4
PART 2
Effect
Procedures
Amendment
EFFECT
These Procedures have the effect set out in Part 2 of the Regulations.
PART 3
PROCEDURES
3.1
Pursuant to Regulation 11.1 and in addition to and subject to the Regulations, the conduct of
clearings effected between Participating Members in any Region and the settlement of balances
arising as a result of the exchange of Items must be undertaken in accordance with the practices,
procedures, standards and specifications specified in the Schedules to these Procedures.
3.2
For the purposes of the Australian Paper Clearing System (CS1) sections 1, (excluding subsection 1.1.2), 2, 3.5 and 3.6 of the Record of Arrangement Between Banks as at 18 August 1993
(see Regulation 11.3) and as amended since that date are set out in Schedule 10. Schedule 8
(Approved Representation Arrangements) supersedes sub-section 1.1.2 of the Record of
Arrangements Between Banks.
PART 4
Inserted
effective 1/2/95
AMENDMENT
4.1
These Procedures may be varied by the Management Committee in accordance with

Regulation 11.2 and Rule 4.2 of these Procedures. Any variation to these Procedures must
contain an editorial note setting out the effective date of such variation.
Last amended
effective 25/7/08
4.2
Each Participating Member must notify the Company:
Last amended
effective 25/7/08
(a)
of any changes to its contact points as specified in Appendix D; or
(b) if at any time it seeks inclusion in, a change to or deletion from the list of Destination BSB
Numbers For Encoding Overseas On-demand AUD Drafts Without Pre-indicated Details in
Appendix I for the purposes of Appendix I.1.
Each Tier 1A Participating Member must notify the Company of any change to the details in the lists of
Primary Exchange Arrangements Matrix in Appendix N or Contingency Exchange Arrangements Matrix in
Appendix O for the purposes of Rule 4.7 in Schedule 11.
The Chief Executive Officer may vary each of Appendix D, Appendix I, Appendix N, Appendix O, and
Schedule 8 (Approved Representation Arrangements) in accordance with such notification without the
need to obtain the approval of the Management Committee or any other person.
Last amended
effective 22/01/09
A variation made by the Chief Executive Officer pursuant to this Rule 4.2 will, upon publication by the
Company, be binding on that Participating Member and each other Participating Member.
The next page is S1.1

2.1
[ABN 12 055 136 519]


Schedule 1 - Approved Exchange Times
Schedule 1
APPROVED EXCHANGE TIMES
(Schedule 4, Rule 2.2)
Schedule 1 is located separately

S1.1
[ABN 12 055 136 519]


Schedule 2 - Representation Arrangements
Schedule 2
REPRESENTATION ARRANGEMENTS
PUBLISHED MINIMUM REQUIREMENTS
(Regulation 5.10)
Pursuant to Regulation 5.10 of the Regulations, set out below are the minimum requirements to
be included in an agreement for a Representation Arrangement ("Agreement") entered into after
the Commencement Date. Such an Agreement must be consistent with the Regulations and
Procedures.
1.
Appointment of the Representative to act as the representative of the Appointor.
2.
The term of the appointment is to be specified.
3.
Grounds for timing and manner of terminating the Agreement.
4.
Procedures relating to the processing of Inward Clearings (if any).
Last amended
effective 20/9/96
5.
Procedures relating to processing of Outward Clearings (if any) in accordance with the
requirements of Schedule 7.
Last amended
effective 20/9/96
6.
Settlement of the balances due between the Representative and the Appointor. If the Appointor
is a Tier 1B Participating Member, this must comply with Regulations 4.3 and 10.
7.
Agreement that to the extent of any inconsistency, the provisions of the Regulations and
Procedures prevail over the terms of the Agreement.

S2.1
[ABN 12 055 136 519]


Schedule 3 - Completion of Flow Charts
Schedule 3
COMPLETION OF FLOW CHARTS
FOR REPRESENTATION ARRANGEMENTS
(Regulation 5.6(a))
1.
Purpose of Flow Charts
1.1
The prime purpose of the flow charts is to facilitate provision of information to the Management
Committee, so that it may assess the efficiency of any proposed new or varied Representation
Arrangement, the major criterion in that assessment being that such Representation Arrangement
does not compromise the reasonable expectations of collecting financial institutions.
1.2
Additionally, the flow charts are provided for use by Participating Members in evaluating their
own delivery and processing procedures and those of the other parties to the Representation
Arrangement.
1.3
Separate flow charts must be prepared for each Region in which the Representation Arrangement
operates in order to facilitate clear and comprehensive details of the clearance of Items in those
Regions.
2.
Responsibilities for Preparation of Flow Charts
2.1
Responsibility for the preparation of flow charts for each Region rests with the Participating
Member which is the Clearing Representative in each such Region.
2.2
For each Representation Arrangement, the Participating Member acting as Clearing

Representative will complete flow charts for each Region in which it so participates as Clearing
Representative.
3.
Preparation of Flow Charts
3.1
Separate flow charts must be prepared for Inward Clearings and Outward Clearings, as follows:
Last amended
effective 20/9/96
Inward Clearings
In each Region where the Clearing Representative represents the Appointor, clearance details
from receipt at the Specified Location, to place for presentment and/or payment decision area of
the Appointor (including via any Intermediate Representative) are required.
Outward Clearings
In each Region where the Clearing Representative presents Outward Clearings on behalf of the
Appointor or Intermediate Representative, clearance details from deposit area of Appointor or
Intermediate Representative, to the Specified Location, are required.
3.2
The flow charts must plot the movement of both Items and value, using standard symbols (see
below for symbols). Where the value and Items proceed along different paths, this is to be
shown by use of separate lines indicating same (see examples attached).
3.3
To ensure legibility of information supplied, flow charts must be typewritten.

S3.1
[ABN 12 055 136 519]


3.4
Separate pre-printed flow chart forms are provided for plotting Inward Clearings and Outward
Clearings. Columns are shown for "time", "location", "activity", and "party undertaking activity"
(eg. Clearing Representative) and "description or comments". Space for "special notes" is
provided at the bottom of the forms.
Last amended
effective 30/8/02
3.5
Clearing activities must be plotted according to related time, ie commence with "Day 1" at
respective starting points (for Inward Clearings, receipt at the Specified Location and for
Outward Clearings, the point of initial deposit) and show "a.m." or "p.m.", as appropriate.
Specified Location must indicate whether "City" or "Country" and name of relative State or
Region. Type of activity should indicate "transport", "processing", "transmission" etc., with
additional description of these such as mode of transport and mode of transmission, being
entered in the "description or comments" column.
Last amended
effective 20/9/96
3.6
Standard symbols to be used when plotting are:

Items and value together - "X"
Value moved by Electronic Means - "$"
Items only, No Accompanying Value - "O"
3.7
Last amended
effective 20/9/96
Terminology used on the flow charts will encompass the following:

Processing
This term is to cover the handling/processing of both Item and value, whether jointly or
individually, by any participant in the representation chain, and will include such activities as:
Proving/Encoding/Sorting vouchers
Amalgamating Outward Clearings received from Appointor
Representative with own vouchers in readiness for exchange.
or
Intermediate
Outsorting of Appointor/Intermediate Representative Items received on Inward Clearings

Capture of electronic data
Processing of electronic data
Transport
This term is to cover the movement of vouchers (whether with or without value) or other media
(eg. physical medium), from one point to another, and will include as applicable:
Last amended
effective 30/8/02
Outward Clearings
Movement of Items or other media from Appointor/Intermediate Representative branch to
their head office or any other office
Movement of Items or other media from Appointor/Intermediate Representative to
Clearing Representative/Intermediate Representative
Movement of Items or other media from Clearing Representative/ Intermediate
Representative branch to their head office or any other office
Movement of Items or other media from Intermediate Representative to Clearing
Representative
Movement of Items or other media by Clearing Representative to Specified Location

S3.2
[ABN 12 055 136 519]


Inward Clearings
Movement of Items or other media from Specified Location by Clearing Representative
Movement of Items or other media from Clearing Representative to Intermediate
Representative (if any)
Representative head office/other office to any other of their branches
Representative to Appointor
Movement of Items or other media by Appointor to place for presentment and/or decision
making area (either branch of domicile or centralised area as applicable)
Transmission
Transmission of data from Clearing Representative to Intermediate Representative
Transmission of data from Clearing Representative/Intermediate Representative to
Appointor
Any transmission to/from a third party/bureau
4.
Submission of Flow Charts to Management Committee

Flow charts as required, must accompany the request to the Management Committee in
accordance with Part 5 of the Regulations for approval of new or varied Representation
Arrangements.
Last amended
effective 20/9/96
5.
Examples of Flow Charts
5.1
In the examples provided, "EFG Bank Limited" having received a banking licence, has
appointed "XYZ Bank Ltd" to act as its Clearing Representative in all Regions. Because "XYZ
Bank Ltd" does not attend the Sydney Region, XYZ Bank Ltd is an Intermediate Representative
in that Region and "ABC Bank Limited" acts as its Clearing Representative in that Region and
has agreed to also act as Clearing Representative for "EFG Bank Limited" there.
5.2
Thus, two Participating Members must complete flow charts; "ABC Bank" prepares flow charts
relative to input from NSW Region (see Example 1). "XYZ Bank" prepares flow charts for input
from other Regions (see Example 2, relative to Victorian Region).
5.3
"EFG Bank" is a Victorian regional bank, consequently Outward Clearings only occur in that
Region, as depicted in Examples 3 and 4, prepared by "XYZ Bank".
Last amended
effective 20/9/96
5.4
In Example 5, which is a nil return, "XYZ Bank" is acting only as a Clearing Representative (ie.
collecting and processing Inward Clearings from South Australia) for "EFG Bank Ltd". (For
completeness, it is felt that a separate "nil" Outward Clearings chart is necessary.)
Last amended
effective 25/7/08

S3.3
[ABN 12 055 136 519]


Schedule 3 - Examples of Flow Charts
FLOW CHART - NEW OR AMENDED REPRESENTATION ARRANGEMENT

Institution Completing This Chart: ABC BANK LIMITED
TIME
Day
Time
INWARD CLEARINGS
Example 1
DAY 1
PM
FROM
DAY 2
AM
DAY 3
PM
PM
DESCRIPTION or COMMENTS
SYDNEY
Items exchanged.
Own messenger.
Outsort EFG paper.
Commercial carrier.
Vouchers and value received by XYZ.
Value captured in Sydney by XYZ.
Vouchers transferred to EFG in Melbourne.@
$
O
Value transmitted to EFG in Melbourne.

Vouchers received in Melbourne by EFG.
$
O
EFG account update.

Off-line sort ... etc.
Vouchers delivered to EFG Victorian branches.#
$
O
O
Value received (on-line screen reports).

Vouchers received city/metropolitan branches.
Vouchers received country branches.
SPECIFIED LOCATION
Transport
CLEARING REPRESENTATIVE
Processing
ABC BANK LIMITED

Transport
Receipt
INTERMEDIATE REPRESENTATIVE/
APPOINTOR
Transport
XYZ BANK LIMITED
Processing
Transport
Receipt
APPOINTOR
Transport
EFG BANK LIMITED

Processing
Transport
TO
$
CITY/COUNTRY
BRANCH(ES)**
**
Indicate whether City/Country/Interstate branches
City/Country
State
CITY
CITY
NEW SOUTH WALES
CTRY
VICTORIA
SPECIAL NOTES:
Standard symbols:
X
$
O
=
=
=
vouchers and value

value by electronic means
vouchers only, no value
@
#
Commercial carrier - early a.m.

Commercial carrier.
ddl-060793
[ABN 12 055 136 519]

S3.4


Institution Completing This Chart: XYZ BANK LIMITED
TIME
Day
Time
INWARD CLEARINGS
Example 2
DAY 1
PM
DAY 2
AM
PM
FROM
X
MELBOURNE
Items exchanged.
Own messenger to Melbourne data centre.
X
$
$
MICR capture by XYZ in Melbourne.

Transmission to XYZ in Sydney.
Value amalgamation.
Delivery of vouchers to EFG.#
$
O
Value transmitted to EFG in Melbourne.

Vouchers received by EFG.
$
O
EFG account updated.

Off-line sort ... etc.
Commercial carrier.
$
O
On-line screen reports.

Vouchers received by EFG branches.
SPECIFIED LOCATION
Transport
Processing
Transport
Receipt
APPOINTOR
Transport
X
X
XYZ BANK LIMITED

Processing
$
$
Transport
O
$
Receipt
APPOINTOR
Transport
EFG BANK LIMITED

$
Processing
Transport
TO
$
O
CITY
BRANCH(ES)**
**
City/Country
State
CITY
VICTORIA
SPECIAL NOTES:
Standard symbols:
X
$
O
=
=
=
vouchers and value

Commercial carrier.
ddl-060793
[ABN 12 055 136 519]

S3.5


TIME
Day
Time
OUTWARD CLEARINGS
Example 3
DAY 1
PM
AM
FROM
X
CITY
Enter system.
Proof/endorse.
Deliver to data centre.#
Encode/sort.
Deliver to XYZ.@
Exchange amalgamation.
Own messenger to Clearing House.
Received by paying banks plus/or their agents.
BRANCH(ES)**
Transport
APPOINTOR/ULTIMATE APPOINTOR
Processing
EFG BANK LIMITED

Transport
Receipt
AGENT
Transport
XYZ BANK LIMITED

Processing
Transport
Receipt
SUB-AGENT
Transport
Processing
Transport
TO
X
MELBOURNE
SPECIFIED LOCATION
**
City/Country
CITY
State
VICTORIA
SPECIAL NOTES:
Standard symbols:
X
$
O
=
=
=
vouchers and value

#
@
Commercial carrier.
EFG messenger by taxi.
ddl-060793
[ABN 12 055 136 519]

S3.6


TIME
Day
Time
DAY 1
PM
OUTWARD CLEARINGS
Example 4
DAY 2
PM
AM
FROM
X
COUNTRY
Enter system.
Proof/endorse.
Deliver to data centre.#
Encode/sort.
Deliver to XYZ.@
Exchange amalgamation.
Own messenger to Clearing House.
Received by paying banks plus/or their agents.
BRANCH(ES)**
Transport
APPOINTOR/ULTIMATE APPOINTOR
Processing
EFG BANK LIMITED

Transport
Receipt
AGENT
Transport
XYZ BANK LIMITED

Processing
Transport
Receipt
SUB-AGENT
Transport
Processing
Transport
TO
X
MELBOURNE
SPECIFIED LOCATION
**
City/Country
COUNTRY
State
VICTORIA
SPECIAL NOTES:
Standard symbols:
X
$
O
=
=
=
#
@
vouchers and value

Commercial carrier.
EFG messenger by taxi.
ddl-060793
[ABN 12 055 136 519]

S3.7

Last amended effective 25/7/08

TIME
INWARD CLEARINGS
Example 5
Day
Time
FROM
ADELAIDE
SPECIFIED LOCATION
Transport
Processing
XYZ BANK LIMITED

Transport
Receipt
APPOINTOR
Transport
Processing
Transport
Receipt
APPOINTOR
Transport
EFG BANK LIMITED

Processing
Transport
TO
BRANCH(ES)**
**
CITY
City/Country
State
SOUTH AUSTRALIA
SPECIAL NOTES:
Standard symbols:
X
$
O
=
=
=
vouchers and value

@
#
Commercial carrier - early a.m.

Commercial carrier.
ddl-060793
[ABN 12 055 136 519]

S3.8

Schedule 4 - Procedural Rules: Conduct of Clearings, etc.
Schedule 4
PROCEDURAL RULES GOVERNING THE CONDUCT OF CLEARINGS,
SETTLEMENTS AND OTHER MATTERS IN REGIONS
(Regulation 11.1)
RULE 1
PRELIMINARY
Application
1.1
Subject to Rule 3.4, the Procedures contained in this Schedule 4 (except Rule 6.4) relate to all
types of for-value paper clearings. Rules which are asterisked also apply to exchanges of notfor-value paper which has been presented electronically: see also Schedule 11, Rule 1.13 and
Schedule 1.
Last amended
effective 1/7/98
Rule 3.4 covers independent paper exchanges and independent electronic exchanges.
Rule 3.10 covers the retention of records relating to both for-value paper exchanges and
electronic exchanges.
Rules 4.1, 4.2, 4.5, 4.6 and 4.7 cover error adjustments arising out of both for-value paper
exchanges and electronic exchanges. For error adjustments arising out of electronic exchanges,
any reference in Rules 4.1 and 4.7 to Presenting Member is to be read as a reference to
capturing Institution.
Last amended
effective 7/9/2000
Rule 5 covers the settlement of both for-value paper and electronic exchanges.
1.2
RULE 2
A Tier 1A Participating Member which does not directly attend for-value paper exchanges in a
Region must in that Region observe the procedural rules which apply to a Tier 1B Participating
Member in respect of for-value paper.
Last amended
effective 1/7/98
ATTENDANCE AT SPECIFIED LOCATIONS
Representation at Specified Location

*2.1
Each Tier 1A Participating Member must, in relation to each Specified Location at which it
directly participates in for-value paper exchanges, appoint at least one careful and reliable officer
of adequate experience who will be responsible for the whole of that Participating Member's
exchange work in the Specified Location for which the officer is appointed.
Last amended
effective 1/7/98
Time and Attendance

*2.2
The times of attendance in the respective Specified Locations or Regions may be determined
from time to time by the Management Committee which may fix such times either uniformly for
all Specified Locations or Regions or individually for any one or more Specified Locations or
Regions, and are set forth in Schedule 1.
Last amended
effective 1/7/98
The determinations made by the Management Committee in respect of each Specified Location
or Region (whether individually or otherwise) and in force at the date of adoption of these
Procedures will remain in force until altered in accordance with this Rule 2.2.

S4.1
[ABN 12 055 136 519]


Each determination made subsequently to the adoption of these Procedures in respect of each
Specified Location or Region (whether individually or otherwise) must be notified by the
Management Committee to all Tier 1A Participating Members represented in the relevant
Specified Location or Region and will take effect on a date nominated by the Management
Committee being a date not less than 7 days after such notification is sent off or handed by the
Management Committee to the relevant Participating Members.
Punctuality and Exclusion
*2.3
The times of attendance determined from time to time by the Management Committee in
accordance with Rule 2.2 are precise and must be adhered to by all Tier 1A Participating
Members. Other Participating Members' Representatives are entitled to refuse to accept
exchanges from any person upon the expiration of 10 minutes after the time set for attendance
for any particular exchange.
Last amended
effective 1/7/98
Consequences of Exclusion
*2.4
RULE 3
Where exchanges are refused as aforesaid, the affected Tier 1A Participating Member or Tier 1A
Participating Members must accept Items from each Tier 1A Participating Member which
attended the relevant exchange if called upon to do so, and is not, by reason only of such refusal,
precluded from making immediate bilateral arrangements for exchange of Items with such other
Tier 1A Participating Members as may be prepared to enter into such arrangements.
Last amended
effective 1/7/98
EXCHANGES
Delivery Prior to Exchange Times

*3.1
Notwithstanding the provisions contained in, and the privileges and facilities contemplated by,
these Procedures, Items may, by arrangement, be delivered to the appropriate processing centres
of any one or more Tier 1A Participating Members prior to the time specified for each exchange.
The amounts concerned in exchanges of for-value paper effected by the means authorised by this
Rule shall be taken into account at the settlement effected in respect of the day of delivery.
Last amended
effective 1/7/98
*3.2
Each Tier 1A Participating Member which participates in exchanges conducted at a Specified

Location must attend each exchange in accordance with Rule 2.2 and must remain in attendance
at the Specified Location throughout the whole of all such exchanges and until completion,
provided however that the provisions of this Rule are subject to the provisions of Schedule 5 and
of any contingency plan referred to in Part 9 of the Regulations under which operations may at
any time be in the course of being conducted. In the event of any inconsistency between the
provisions of this Rule and those of Schedule 5 and/or any contingency plan, the provisions of
Schedule 5 and/or the contingency plan prevail.
Last amended
effective 1/7/98
Extension of Time
*3.3
The Manager of any Region, on application made to him or her by a majority of the Tier 1A
Participating Members which participate in exchanges conducted at Specified Locations in that
Region or, if there is no Manager, a majority of Tier 1A Participating Members which participate
in exchanges in that Region, may allow an extension (not exceeding 30 minutes) of any of the
times contemplated by Rule 2.2. Notice of each such extension will be communicated to all Tier
1A Participating Members which participate in exchanges in that Region as early as possible and
in any event not later than one hour before the scheduled exchange time.

S4.2
Last amended
Effective 1/7/98
[ABN 12 055 136 519]


Independent Exchanges
*3.4
Pursuant to Regulation 2.13, any two Tier 1A Participating Members may, by bilateral
agreement between them, conduct exchanges between themselves at mutually convenient
locations and times. Subject to Regulation 12, the amounts concerned in each such exchange of
value will be taken into account at the settlement effected in respect of other exchanges of Items
on the date on which such first mentioned exchange takes place and in determining the relevant
Regional Transaction Volume and National Transaction Volume.
Last amended
effective 1/7/98
Unacceptable Items
3.5
The following must not be included in any exchange:
Last amended
effective 20/06/05
(a)
drafts (other than on demand drafts that are drawn on Participating Members or a nonmember Appointor);
Last amended
effective 22/12/95
(b)
after sight drafts;
(c)
promissory notes;
(d)
payment instruments drawn in a currency other than Australian dollars;
(e)
Items with other vouchers, duplicates or documents attached;
(f)
dishonoured Items;
(g)
card scheme merchant envelopes (for value);
(h)
AUD instruments not payable in Australia;
Renumbered
effective 11/10/06
(i)
photocopies of Items;
Renumbered
effective 11/10/06
(j)
carrier envelopes which do not comply with the specifications set out in Appendix Q; and
Inserted
effective 11/10/06
(k)
Undomiciled Cheques.
Inserted
effective 11/9/06
Last amended
effective 17/3/03
Batch Listings
3.6
A Tier 1A Participating Member may deliver as many branch schedules and/or batch listings
during each exchange as it thinks fit provided that:
(a)
each branch schedule or batch listing must show:

(i)
amounts of individual Items;
(ii)
total amount of Items listed;
(iii)
date processed; and
(iv)
the identifying stamp or BSB Number of the Presenting Member;

S4.3
[ABN 12 055 136 519]


(b)
each batch of encoded vouchers must be accompanied by a Debit or Credit Batch Header
(as set out in Appendix A10 and A11 respectively). The Batch Header(s) must bear the
total amount of the Items in the batch and must in each case be the first Item in the batch;
(c)
batches must be limited in size to approximately 200 Items. Debit Items and Credit Items
must be exchanged as separate batches and may in no case be intermixed;
(d)
branch schedules and batch listings must be folded so as to show the total and placed at
the front of each batch before the Batch Header;
(e)
corrections to branch schedules and batch listings must be made by deleting the incorrect
amount and entering the correct amount. Adjustments may not be made to listings by
machine addition or subtraction of a balancing amount; and
(f)
the sequence of the actual Items in the batch and on the branch schedule or batch listing
must be the same.
(Note: For not-for-value paper exchanged electronically see Schedule 11, Rule 1.13)
Last amended
effective 20/10/99
Last amended
Effective 20/10/99
Inserted
effective 1/7/98
Exchange Listings
3.7
Listings recording totals of all batches included in an exchange must be compiled and presented
as follows:
(a)
each listing may record no more than 20 batch totals;
(b)
if there is more than one exchange listing, the batches relative to each exchange listing
must be secured together with the relative listing placed at the front;
(c)
the total value of exchange listings must be aggregated to show the total value exchanged;
and
(d)
all exchange listings must clearly indicate the financial institution of origin.
Presentation of Work
3.8
To be acceptable for exchange in any Region, all Debit Items must be encoded to the extent
specified in Rule 3.8(c)(i). This obligation does not apply to Credit Items, but a Tier 1A
Participating Member may make bilateral arrangements to encode amount and/or other fields for
Credit Items addressed to another Participating Member. Suspected Counterfeit Cheques must
not be manually entered or over-encoded for electronic presentment. The following rules apply:
(a)
all Items so encoded must maintain established standards in relation to paper quality,
document size and encoding quality;
(b)
all work must be presented in a uniform manner with special attention being paid to:
(i)
adequate securing of Items contained in batches and batches making up exchange

listings;
(ii)
removal of staples and pins;
(iii)
absence of adhesive duty stamps from the code line area;

S4.4
Last amended
effective 7/9/2000
[ABN 12 055 136 519]


(iv)
legibility of tape listings;
(v)
removal of attachments;
(vi)
treatment of mutilated Items in terms of Rules 3.8(e) and/or (f);
(vii)
ensuring no Items are folded and that all are facing the same way;
and
(viii) supporting documentation in terms of Rules 3.6(b) and (d);
Last amended
effective 4/12/95
Rule 3.8(c) Confidential

(c)
vouchers must be encoded to the following extent:

(i)
subject to the exception provided for in Rule 3.8(c)(iii), the amount and the
destination BSB Number will be encoded on all Debit Items (including interinstitutional drawing vouchers and overseas on-demand Australian dollar
denominated AUD - drafts). The destination BSB Numbers to be used for
encoding overseas on-demand AUD drafts are shown in Appendix I;
(ii)
where Tier 1 Participating Members make a bilateral arrangement to encode Credit

Items in terms of this Rule 3.8, the encoding will include the BSB Number
together with at least the amount and Transaction Code. Where a specific
Transaction Code is pre-indicated on the form, this should be encoded, failing
which Transaction Code 50 must be used; and
(iii)
individual Debit Items or Credit Items of a value that exceeds the maximum
amount capable of being encoded in a standard code-line from time to time must
constitute a separate batch or batches, unencoded as to amount, and will be
included in ordinary exchanges;
Last amended
effective 16/7/99
and
(d)
the responsibilities of the Presenting Member and the Ledger Financial Institution, with
regard to encoding, will be as follows:
(i)
the Presenting Member must exercise all reasonable care to ensure the accuracy of
amount encoding;
(ii)
Encoding Errors located at the time of processing by the Presenting Member must
be corrected in accordance with procedures agreed by Participating Members from
time to time; and
(iii)
in all cases, the responsibility for posting the correct amount to the relevant
customer's account is that of the Ledger Financial Institution;
Rules 3.8(d)(iv), 3.8(e) and 3.8(f) are Confidential
(iv)
Presenting Members to ensure that only appropriate overseas on-demand AUD

drafts are encoded with relevant destination BSB Numbers shown in Appendix I.
Ledger Financial Institution relies on the Presenting Members to distinguish their
overseas on-demand AUD drafts from the many and varied designs that are in use
by overseas correspondent institutions.

S4.5
Inserted
effective 16/7/99
[ABN 12 055 136 519]


(e)
Where an Item is mutilated or damaged to the extent that it is likely to cause malfunction
of processing equipment, the Item must be placed in a Carrier Envelope. The Carrier
Envelope containing a mutilated or damaged Item must be MICR encoded in compliance
with Rule 3.8(c).
(i)
(ii)
If the Carrier Envelope containing the Item is still likely to cause a malfunction in
the processing equipment, then:
(A)
in the case of a mutilated or damaged Debit Item, the Item in the Carrier
Envelope must be forwarded by direct remittance to the paying office of
the Ledger Financial Institution; or
(B)
in the case of a mutilated or damaged Credit Item, the Item In the Carrier
Envelope must be forwarded direct to the Ledger Financial Institution with
a direct remittance voucher.
Amended,
effective 11/10/06
Inserted
effective 11/10/06
If the Carrier Envelope containing the Item is not likely to cause a malfunction in
the processing equipment, then the Carrier Envelopes MICR code line must be
encoded with the MICR code line data from the mutilated or damaged Item and
the Item cleared through the for-value exchange process.
Inserted
effective 11/10/06
Rule 3.8(f) deleted.
Deleted
effective 11/10/06
Comparison of Items
3.9
It is not compulsory for the relevant Receiving Member to compare Items representing the
exchanges with the corresponding schedules and/or batch listings of the Presenting Member
before the exchanges are taken from any Specified Location.
Rule 3.10 is Confidential
Trace Requests
*3.10
(a)
Participating Members must, to the extent each of them is legally able to do so, assist one
another in tracing Items in accordance with this Rule 3.10. For the purposes of this Rule,
if a Participating Member requests another Participating Member to trace an Item
exchanged more than 12 months prior to the date of the request, that other Participating
Member is not obliged to comply with the request if records are not available. Members
must retain exchange tapes, schedules and other records (or copies thereof), required to
trace the source and disposal of individual Items, for a period of not less than 12 months
following the date of the exchanges to which they relate.
Last amended
effective 25/3/98
The minimum value of Items to which this Rule applies is $35 for traces carried out for
the purposes of a Participating Member. Where Members wish to trace Items for the
purposes or at the request of their customers, such traces are not subject to this threshold
value, but are otherwise subject to the provisions of this Rule 3.10.
(b)
An urgent trace request is one relating to:

An inward direct remittance that could be an inward dishonour;
A Cheque or other Item needing to be dishonoured or returned;
Last amended
effective 25/7/08
A transfer credit, especially payroll/pension (destination traces only);

An Item involved in a police investigation that is time-critical, or

S4.6
[ABN 12 055 136 519]


Any other Item of not less than $5,000 in value that was processed not more than
one month prior to the date of the request.
All other traces are routine.
(c)
All trace requests must be answered within the following time-frames from the date of the
request:
Urgent traces - by end of next business day;
Routine traces - within 10 business days.
(d)
Trace requests should be made either by facsimile or by e-mail transmission. An enquiry

sheet substantially in the form of the Trace Request set out in Appendix C2 should be
used for requests by fax. Alternatively, an electronic version of Appendix C2 (as a rich
text format attachment) may be used if the request is made by e-mail transmission.
Whether by fax or by e-mail, each form must relate to only one request, but any number
of requests (or responses) sent by facsimile may be included in the same transmission,
provided that the box marked No. of requests included in this transmission.
No.________ of _________, or the second box marked No. of replies included in this
transmission. No. _________ of __________, is completed.
Last amended
effective 30/10/02
(e)
Each Participating Members contact facsimile numbers for the purposes of this Rule are
set out in Appendix D3. Participating Members must promptly notify changes in these
numbers to the Company in accordance with the requirements set out in the Preamble to
Schedule 11 of these Procedures.
Last amended
effective 24/1/05
Processing of Exchanged Items

3.11
As far as practicable all Items exchanged must be processed on the day of receipt.
Rule 4 (Rules 4.1 to 4.7 inclusive) is Confidential
RULE 4
Last amended
effective 25/7/08
ERRORS
Errors and Surplus or Missing Items

4.1
All adjustments to totals caused by any error must be accounted for in the following manner:
(a)
if the error (including an Encoding Error and surplus or missing Item) is an Error of
Magnitude, the Receiving Member or the Presenting Member which first locates the error
must notify the other immediately the details of the error are known. The error must be
adjusted in accordance with the principles set out in paragraph (d) or (e) below (as
applicable). Once the error is agreed by both Participating Members, adjustment must be
effected as follows:
Last amended
effective 13/06/01
(i)
if the error is agreed before 7am Sydney time on any day, as part of the Nine AM
Batch during the Settlement Session for the same day;
Last amended
effective 22/6/98
(ii)
if the error is agreed after 7am Sydney time on any day, in a manner and at a time
agreeable to both Members provided that if not effected earlier it must be effected
as part of the Nine AM Batch no later than during the first Settlement Session
commencing after that day;
Last amended
effective 22/6/98
(iii)
for the purpose of this Rule the expression as part of the Nine AM Batch has the
meaning ascribed to it in the RITS Regulations.
Last amended
effective 22/6/98

S4.7
[ABN 12 055 136 519]


(b)
(c)
if the error (excluding an Encoding Error but including a surplus or missing Item) is not
an Error of Magnitude, then, subject to paragraph (f) below:
Last amended
effective 7/9/2000
(i)
where the relevant error is found on the day of receipt or within 3 business days
after the exchange on which the error occurred, the Participating Member which
found the error will draw on the other Participating Member for, or remit to that
Participating Member as necessary, the relevant amount using, respectively, the
Debit Error Adjustment Voucher (as set out in Appendix A8) or the Credit Error
Adjustment Voucher (as set out in Appendix A9). The relevant error adjustment
voucher will, if possible, be included in a listing for one of such days; or
Last amended,
effective 20/10/99
(ii)
where the relevant error is not found on the day of receipt or within 3 business
days after the exchange on which the error occurred or if, notwithstanding such
detection, the related error adjustment voucher cannot be included in a listing for
any of such business days, the matter will be resolved by correspondence between
the Participating Members concerned; and
if the error is an Encoding Error which is not an Error of Magnitude:

(i)
(d)
Last amended
effective 7/9/2000
if the relevant error is found within the Time for Dishonour:

(A)
the related error adjustment voucher must be included on the appropriate

debit or credit listing; and
(B)
a photocopy of the incorrectly encoded Item must at the same time be

separately despatched direct to the financial institution concerned;
(ii)
if the relevant error is found outside the Time for Dishonour, the Receiving
Member or the Presenting Member which first locates the error must complete a
Notification of Encoding Error (as set out in Appendix C11 or an electronic
version of this appendix saved as a rich text format attachment) and send by
facsimile or by email to the other Members Notification of Encoding Error contact
point (as set out in Appendix D15);
(iii)
regardless of when the relevant error is found, it must be adjusted in accordance

with the principles set out in paragraph (d) or (e) below (as applicable), using a
Debit or Credit Error Adjustment Voucher (as set out in Appendices A8 and A9,
respectively) (as applicable); and
(iv)
in this Rule 4.1(c), "Time for Dishonour" means the period of time within which:
Last amended
effective 25/7/08
Last amended
effective 17/05/04
(A)
if the Item is a Cheque - dishonour of the Item would have been permissible
in accordance with provisions contained in Rule 2.2.1 of Schedule 10 or, as
applicable, Rules 2.7-2.9 inclusive of Schedule 11 or other published
established practices followed by members of the banking and payments
clearing industry generally had grounds for dishonour existed; or
Last amended
effective 15/01/07
(B)
if the Item is not a Cheque - dishonour of the Item would have been
permissible in accordance with provisions contained in Rule 2.2.1 of
Schedule 10 or other published established practices followed by members of
the banking and payments clearing industry generally had the Item been a
Cheque and had grounds for dishonour existed.
Last amended
effective 15/01/07
any Encoding Error in relation to a Debit Item must be adjusted as follows:

S4.8
[ABN 12 055 136 519]


(i)
if the encoded amount is higher than the sum ordered to be paid by the Item, then
the Ledger Financial Institution may draw on the Presenting Member for the
difference between the encoded amount and the amount ordered to be paid;
(ii)
if the encoded amount is less than the sum ordered to be paid by the Item, then any
resulting loss must be borne by the Presenting Member, unless otherwise agreed
between the Presenting Member and the Ledger Financial Institution.
Note: Ledger Financial Institutions are encouraged to assist Presenting Members in

recovering any loss from the relevant drawer, where that is appropriate;
(e)
any Encoding Error in relation to a Credit Item must be adjusted as follows:

(i)
if the encoded amount is higher than the sum ordered to be credited by the Item,
then:
any resulting loss must be borne by the Presenting Member, unless
otherwise agreed between the Presenting Member and the Ledger
Financial Institution; and
the Ledger Financial Institution may credit the Presenting Member for the
difference between the encoded amount and the amount ordered to be
credited;
(ii)
if the encoded amount is less than the sum ordered to be credited by the Item, then
any resulting loss must be borne by the Presenting Member, unless otherwise
agreed between the Presenting Member and the Ledger Financial Institution.
Note: Ledger Financial Institutions are encouraged to assist Presenting Members in

recovering any loss from the relevant depositor, where that is appropriate;
(f)
in relation to a Cheque only: if the error, not being an Encoding Error, consists of the
encoded amount being higher than the amount ordered to be paid by the Item, then:
(i)
the Ledger Financial Institution must make the appropriate adjustment to

the drawers account; and
(ii)
any loss must be borne by the Ledger Financial Institution, unless

otherwise agreed between the Presenting Member and the Ledger
Financial Institution.
Last amended
effective 15/01/07
Note: Nothing in this Rule shall be taken to detract from the effect of section 15 Cheques
Act 1986.
If an error involves more than two Tier 1 Participating Members, two or more separate
error adjustments may be required as among those Participating Members (eg. one as
between the Tier 1A Participating Members which were involved in the physical
exchange and a second as between the relevant Tier 1A Participating Member which
acted as Clearing Representative for a Tier 1B Participating Member and that Tier 1B
Participating Member); and
Inserted
effective 20/9/96
(g)
if applicable, compensation calculated in terms of Rule 4.5 will be included in each error
adjustment under this Rule.
Inserted
effective 13/06/01
(h)
Changes to details published in Appendix D15 must be promptly notified to the Company
in accordance with requirements set out in the Preamble to Schedule 11 of these
Procedures.
Inserted
effective 24/1/05

S4.9
[ABN 12 055 136 519]


Further Provisions Relating to Errors and Surplus or Missing Items

4.2
The following additional provisions apply in relation to errors and surplus or missing Items:
(a)
as to all cases arising under Rule 4.1 (if the Participating Members concerned cannot
agree on the amount or method of settlement in relation to any question arising under
Rule 4.1) or the apportionment of any consequential loss of the kind contemplated in Rule
4.7, the provisions of Rule 4.7 for settlement of disputes apply; and
(b)
in addition, as to all cases arising under Rule 4.1(b) and 4.1(c), adjustments must not be
made by alteration to the amount of the batch listing. A separate voucher must be used
for each individual error and separate errors may not be aggregated in one voucher.
Missorted Items
4.3
Missorted Items or batches (listed or otherwise) found in any exchange must be dealt with as
follows:
(a)
where found on the day of receipt they shall be processed by the Receiving Member and
redirected to the Ledger Financial Institution through the exchanges on that day; and
(b)
where redirection by the Receiving Member to the Ledger Financial Institution on the day
of receipt is not possible, the following arrangements will apply:
(i)
where the amount constitutes an Error of Magnitude, the provisions of Rules 4.1(a)
and 4.2(a) apply. In these circumstances the Receiving Member must hand the
missorted Items back direct to the Presenting Member, for redirection to the
Ledger Financial Institution, and not pass them through the exchanges to the
Ledger Financial Institution; and
(ii)
where the amount does not constitute an Error of Magnitude and:

(A)
the number of Items is 200 or more, the Receiving Member may at its
election deliver such Items, either to the Presenting Member or to the
Ledger Financial Institution with value adjustment; and
(B)
the number of Items is less than 200, the Receiving Participating Member
must redirect the Items to the Ledger Financial Institution through the
exchanges.
Further Provision Relating to Unlisted Missorted Items

4.4
Where any missorted Items or batches are received unlisted, the Tier 1A Participating Members
concerned may agree to deliver such Items either to the Presenting Member or to the correct
Receiving Member without value adjustment.
Last amended
effective 13/06/01
4.5
Compensation payable between the Tier 1A Participating Members pursuant to Rule 4.1(g) will
be calculated as follows (except to the extent the parties to a particular compensation claim agree
to alternative compensation arrangements in respect of that claim):
Last amended
effective 15/01/07
(a)
Inserted
effective 15/01/07
For all errors except Encoding Errors compensation will be calculated in accordance with,
and subject to, the provisions of the Inter-organisation Compensation Rules.

S4.10
[ABN 12 055 136 519]


(b)
For Encoding Errors which are Errors of Magnitude compensation will be calculated
according to the formula C=(PxESR%xD)/365 (adjusted when a leap year), where C is
the compensation to be paid, P is $A amount of the error to be adjusted, ESR% is the
overnight ESA rate as shown on the RITS NOTESQ screen (and represents the interest
rate paid by the Reserve Bank of Australia on overnight balances in Exchange Settlement
Accounts) and D is the number of days in respect of which compensation is payable.
Inserted
effective 15/01/07
(c)
For Encoding Errors which are not Errors of Magnitude no compensation shall be
payable.
Inserted
effective 15/01/07
Notes: Where, as contemplated by Rule 4.1, a subsequent error adjustment is required between
a Clearing Representative for a Tier 1B Participating Member and that Tier 1B
Participating Member, that adjustment will, unless the parties agree otherwise, be made
in an amount equal to the compensation received by the Representative, less the amount
of the administration fee (if any) received.
Last amended
effective 15/01/07
Refer to Rule 10 of the Inter-organisation Compensation Rules in connection with adjustments to

totals of exchanges, noting the minimum claim amount applied under those Rules).
Last amended
effective 15/01/07
Each Participating Member must nominate, in writing, to the Company a compensation contact
point for the purposes of the Inter-organisation Compensation Rules. Full details of any
compensation claim made in accordance with the Inter-organisation Compensation Rules must
be provided to the relevant Participating Members nominated compensation contact point as set
out in Appendix D10. Participating Members must promptly notify the Company of any changes
in the contact details of their compensation contact points in accordance with requirements set
out in the Preamble to Schedule 11 of these Procedures.
Further Provision Relating to Interest
4.6
Should the Tier 1 Participating Members concerned be unable to agree upon any question arising
under Rule 4.5, the provisions of Rule 4.7 for settlement of disputes apply.
Losses
4.7
In all cases where a loss has to be met by reason of:

(a)
a conflict of opinion as to which Participating Member was responsible for the loss; or
(b)
the inability of the Ledger Financial Institution to obtain reimbursement from the relevant
drawer(s) (except where the Ledger Financial Institution is otherwise responsible for the
loss under these Procedures); or
Last amended
effective 7/9/2000
(c)
the inability of the Presenting Member to obtain recourse against its customers, (except
where the Presenting Member is otherwise responsible for the loss under these
Procedures)
Last amended
effective 7/9/2000
the matter is to be referred to the Management Committee pursuant to Part 13 of the Regulations
for determination as to where the loss, and how the apportionment thereof, will fall having
regard to the merits of the individual case.

S4.11
[ABN 12 055 136 519]


RULE 5
5.1
5.2
Amended effective
22/10/12
SETTLEMENT
Except as otherwise provided in these Procedures, every Item exchanged in the APCS must be
settled for, in accordance with the Regulations and these Procedures, on the business day
following the day of exchange. The Management Committee may from time to time determine
those Items in respect of which settlement is to be effected on the same business day as that on
which the Items are exchanged and those Items for which settlement is to be deferred.
Subject to Regulation 12.8 and the regulations and procedures or manual governing any other
Clearing System, Tier 1 Participating Members may submit a File Settlement Instruction, for
value settlement amounts which relate to payment instructions which are exchanged between
Participating Members but which payment instructions are not Items exchanged in the APCS.
Amended effective
22/10/12
If such value settlement amounts for payment instructions which are exchanged between
Participating Members but which are not Items are advised in a File Settlement Instruction with
respect to Items exchanged in the APCS, then settlement of such amounts must be performed in
accordance with the provisions of the Regulations and these Procedures (including without
limitation any provisions applicable when an FTS Event occurs as though those payment
instructions are Items exchanged in the APCS).
Amended effective
22/10/12
For purposes of Rule 5.1, exchanges shall be effected as follows:
Last amended
effective 1/7/98
(a)
for-value paper exchanges must be conducted in each Specified Location on every day on
which it is open for business; and
(b)
electronic exchanges must be conducted by each Tier 1A Participating Member which is a

direct clearer in a Region on every day that Tier 1A Participating Members are open for
business in that particular Region.
If the day following such exchanges is one on which neither Sydney nor Melbourne is open for
business, settlement for such exchanges shall be deferred until the next day which is a business
day in Sydney or Melbourne or both.
5.2A
On any day on which a Specified Location is not open for business, the Participating Members
which participate at the Specified Location may arrange to conduct bilateral exchanges at a time
and place and in a manner of their choosing, and must in that case also agree whether to defer
settlement of such exchanges or despatch File Settlement Instructions via the RITS Low Value
Settlement Service if it is not an Australia-wide public holiday. Any settlement deferred in terms
of this paragraph must be effected no later than the next day which is a business day in Sydney
or Melbourne or both.
Amended effective
22/10/12
Obligation to Submit File Settlement Instructions
Inserted effective
22/10/12
Each Tier 1A Participating Member which participates in exchanges in accordance with Rule
3.2, or in independent exchanges conducted under these Procedures, as a Presenting Member,
must ensure that on each day that exchange takes place, it submits:
(a)
a File Settlement Instruction for each of its Tier 1A Participating Member Counterparties
to an electronic exchange, including File Settlement Instructions for any $0 clearing files
exchanged;
(b)
a File Settlement Instruction for each of its Tier 1A Participating Member Counterparties
to a for-value paper exchange in any Region in which it is a direct clearer; and

S4.12
[ABN 12 055 136 519]


(c)
a File Settlement Instruction for each Tier 1B Participating Member Counterparty on

whose behalf it acts;
to RITS via the Low Value Settlement Service, in each case specifying the amount owed to, or
by, as the case may be, such Counterparty, calculated by reference to the net value of Debit Items
and Credit Items presented at exchange.
When a Tier 1A Participating Member is manually entering File Settlement Instructions into
RITS due to a specific processing difficulty it is not necessary to manually enter $0 File
Settlement Instructions. However if manual entry is being used as a business-as-usual mode of
operation then entry of $0 File Settlement Instructions is still required.
All valid File Settlement Instructions submitted by Tier 1A Participating Members will be held
in RITS for multilateral settlement on the settlement date, unless nominated by the Originator for
earlier individual settlement or earlier multilateral settlement, if permitted by the rules governing
the RITS Low Value Settlement Service.
5.2B
Inserted effective
22/10/12
Rejection of File Settlement Instruction

In the event that a File Settlement Instruction is rejected by the RITS Low Value Settlement
Service, the Originator must promptly review, and rectify all defects in the original File
Settlement Instruction and submit a revised File Settlement Instruction if required. The
Originator should promptly notify its Counterparty, by its LVSS Contact, of the estimated timing
of submission of a revised File Settlement Instruction.
5.2C
Inserted effective
22/10/12
Obligation to Monitor Accruing Settlement Obligation

Each Tier 1 Participating Member must monitor its accruing settlement obligations in RITS in
the period prior to settlement. In the event that a Counterparty disputes any value or amount in a
File or in an unsettled File Settlement Instruction submitted the Originator of that instruction, it
will promptly notify the Originator and the provisions of clause 5.2E will apply.
5.2D
Inserted effective
22/10/12
Recalling File Settlement Instructions

Subject to the rules governing the RITS Low Value Settlement Service, an Originator may recall
any File Settlement Instruction using a File Recall Instruction.
If an Originator submits a File Recall Instruction in respect of a particular File Settlement
Instruction, it will promptly notify the relevant LVSS Contact of the Counterparty and advise the
reason for recall. The Originator must promptly identify the defect or error in the original File
Settlement Instruction, or otherwise address the reason for the recall. The Originator must
promptly submit a new File Settlement Instruction via the RITS Low Value Settlement Service if
a new instruction is required.
5.2E
Inserted effective
22/10/12
Disputed Amounts
Subject to the rules governing the RITS Low Value Settlement Service, if at any time prior to
settlement a Counterparty disputes any value or reference to a number of Files within a File
Settlement Instruction submitted by an Originator, it will promptly notify the Originator. The
Originator must review the disputed File Settlement Instruction and, if it identifies any error,
promptly:
(a)
submit a File Recall Instruction to recall that particular File Settlement Instruction; and

S4.13
[ABN 12 055 136 519]


(b)
submit a new File Settlement Instruction, if required.
If, for any reason, the Originator is unable to recall a File Settlement Instruction in respect of
which an error is identified, the error is to be rectified after settlement, in accordance with the
provisions of Rule 4.1.
This provision applies without prejudice to the right of either party to invoke the dispute
resolution procedures available under Part 13 of the Regulations.
5.2F
Inserted effective
22/10/12
Where settlement in respect of any exchange of any Item is, for whatever reason, effected on a
day other than the day on which an Item is exchanged for value, the creditor and debtor Tier 1
Participating Members must make an adjustment of interest between them in respect of that Item
calculated at the interest rate (termed the ESR by the Reserve Bank of Australia) payable by
the Reserve Bank of Australia on overnight credit balances in Exchange Settlement Accounts
held with the Reserve Bank of Australia.
Each APCS Member acknowledges that:
(a)
(b)
5.2G
if a settlement obligation is included in the Nine AM (9am) Settlement, RITS will:

(i)
calculate the interest on the net position between each Tier 1 Participating
Member for the number of days elapsed between the value date of the exchange
and the day of settlement using the ESR applicable to each of those days during
that period; and
(ii)
automatically generate interest adjustment transactions for the settlement of

clearing interest obligations between each Tier 1 Participating Member and its
counterparties. These interest adjustment entries will be incorporated into the
Nine AM (9am) Settlement for each Tier 1 Participating Member; and
if the settlement obligation is not included in the Nine AM (9am) Settlement, an

adjustment for interest is to be made between the Originator and the Counterparty by
RITS cash transfer, or otherwise as bilaterally agreed.
RITS will calculate final settlement figures which will include for-value paper exchanges in all
Regions national electronic exchanges and adjustments for each Tier 1A Participating Member
which acts as a Representative in respect of Inward Clearings for a Tier 1 Participating Member
in one or more Regions, to take account of that part of the settlement amount due to or by that
Tier 1A Participating Member which is attributable to exchanges conducted by it as
representative for that Tier 1 Participating Member..
Last amended
effective 22/10/12
RITS will then generate for each Tier 1 Participating Member a final national settlement figure
to be payable to or receivable by that Tier 1 Participating Member after computing and making
adjustments for (on a multilateral net basis) the cross Clearing System national settlement
position for that Tier 1 Participating Member as a consequence of its participation in the
Australian Paper Clearing System (CS1) and any other Clearing System operating on a
multilateral settlement basis (including but not limited to the High Value Clearing System (CS4)
if that system is settling on a multilateral basis in fall back mode because settlements cannot
occur in real time as a result of some contingency). The generation by RITS will be deemed to
notify that Tier 1 Participating Member of its final national settlement figure and its final net
cross Clearing System settlement figure. On the day of deemed notification the Tier 1
Participating Member must settle its final net cross Clearing System settlement figure.
Last amended
effective 22/10/12

S4.14
[ABN 12 055 136 519]


Rules 5.3 to 5.14A have been deleted effective 22/10/12
5.15
The Reserve Bank of Australia will directly apply to the Exchange Settlement Accounts of Tier 1
Participating Members entries in accordance with the final net bilateral settlement figures
provided to the RITS Low Value Settlement Service.
Last amended
effective 22/10/12
5.16
The telephone and facsimile numbers of the RITS Low Value Settlement Service contacts are
listed in Schedule 9. Any Tier 1 Participating Member which changes the facsimile number or
other detail of its own contact point must notify RITS at least one business day in advance,
including temporary changes such as control of settlements during a holiday, and will be solely
responsible for the consequences of its failure to do so.
Last amended
effective 22/10/12
5.17
All determinations made by the Management Committee and the Australian Committee of the
Australian Clearing House in force at the date of adoption of these Procedures in relation to any
of the matters subject of these Procedures will remain in force until altered in accordance with
these Procedures. Every determination made subsequently to the adoption of these Procedures in
relation to any of the matters which are mentioned in those Rules will be promptly notified in
writing by the Management Committee to all Tier 1 Participating Members and take effect on a
date nominated by the Management Committee being a date not less than 7 days after such
notification is sent off or handed by the said Management Committee to the Participating
Members.
Last amended
effective 22/10/12
5.18
The RITS Low Value Settlement Service must (subject to the following sentence) be used to
submit File Settlement Instructions, File Recall Instructions, and to receive responses and
advices which the Tier 1 Participating Members have elected to receive. Tier 1 Participating
Members must establish and maintain contingency arrangements to ensure that File Settlement
Instructions and, if necessary, File Recall Instructions can be manually submitted during any
event which results in a loss of connectivity to the RITS Low Value Settlement Service.
Last amended
effective 22/10/12
In the event that member user access to RITS is unavailable such that RITS Low Value
Settlement Service instructions cannot be entered, viewed or managed, then affected Tier 1
Participating Members must immediately contact the RITS Help Desk by telephone and request
assistance, and otherwise comply with the LVSS BCP Arrangements and any applicable
requirements set out in Schedule 5.
RULE 6
As soon as an applicant is advised by the Secretary that its application for APCS Tier 1
membership has been accepted it must contact RITS to arrange testing and implementation of its
functional connectivity to the RITS Low Value Settlement Service.
Last amended
effective 22/10/12
The specifications for the RITS Low Value Settlement Service can be found on the Companys
extranet.
Last amended
effective 22/10/12
OTHER PROCEDURAL REQUIREMENTS
Debit Item Clearings

6.1
In addition to the general procedural requirements contained in the foregoing Rules of this
Schedule 4, the following rules and procedures apply in relation to Debit Item clearings:

S4.15
[ABN 12 055 136 519]


(a)
each Debit Item exchanged must bear the identifying mark of either the Deposit Financial
Institution or its Clearing Representative or both, as appropriate to the processing
arrangements in force between the parties. Such mark or marks shall indicate the
financial institution to which those parties intend that the Debit Item, if unpaid, must be
returned by the Ledger Financial Institution. If a Debit Item bears the marks of two or
more financial institutions the ownership of that Item must be clearly indicated, except
where one or more of the financial institutions whose marks it bears is or are acting as
Clearing Representative for the other or others; and
(b)
each unpaid Debit Item is to be returned to the Deposit Financial Institution by the route
indicated by the markings on the Debit Item and, subject to Rule 6.4, no unpaid Debit
Items are to be returned through any Specified Location for value or otherwise. If such
markings are absent the Item may be returned through the office of the Presenting
Member through which it was received.
Credit Clearings
6.2
In addition to the general procedural requirements contained in the foregoing Rules of this
Schedule 4, all Credit Items will as far as practicable include the Ledger Financial Institution's
BSB Number in the form of either E-13B MICR characters in the code line or arabic characters
in the appropriate BSB Number box on the face of the voucher.
Discontinuance of Encoding Credit Items

6.3
The following provisions apply with respect to discontinuance of encoding of Credit Items:
(a)
if a Tier 1A Participating Member wishes to discontinue amount encoding of Credit Items

it must (unless some lesser period is mutually agreed upon by the Tier 1A Participating
Members concerned) give 12 months notice in writing of its intention so to do to the
Ledger Financial Institution or Ledger Financial Institutions concerned where the Ledger
Financial Institutions concerned are Participating Members;
(b)
a Ledger Financial Institution which is a Participating Member may request

discontinuance of encoding of Credit Items delivered to it by one or more Tier 1A
Participating Members by giving to such Tier 1A Participating Member or Tier 1A
Participating Members notice in writing the period of which will be as follows:
(i)
in cases of disagreement between the Tier 1A Participating Members concerned

on standards and procedures - one month or such lesser period as may be mutually
agreed upon;
(ii)
in any other case - 12 months or such lesser period as may be mutually agreed
upon.

S4.16
[ABN 12 055 136 519]


Exchange of Other Articles

6.4
Subject to Rule 3.5, the Management Committee is entitled at any time and from time to time to
determine whether any and, if so, what articles other than the Items for which each Specified
Location was established may be exchanged at any one or all Specified Locations and may also
at any time and from time to time determine the terms and conditions upon which it will permit
any such exchanges to be effected as specified in Schedule 6. The Management Committee may
also at any time and from time to time vary or revoke any such terms and conditions and prohibit
or suspend the exchange of such other articles or any category thereof at any or all Specified
Locations. Every determination and other decision of the kinds referred to in this Rule 6.4 must
be notified in writing by the Secretary to each Participating Member as soon as conveniently
possible after such determination or decision has been made. The settlement requirements in
Rule 3.1 and the procedures in Rules 3.6 to 6.3 (inclusive) of this Schedule 4 will not apply to
any exchange effected pursuant to this Rule 6.4 or to any matter consequent thereon except to
such, if any, extent as such rules and procedures are (with or without variation) expressly
repeated in, or declared to be applicable by, a determination or other decision of the Management
Committee relating to such exchange.

S4.17
[ABN 12 055 136 519]


Schedule 5 - Procedural Rules: Specified Location or other Operations during Industrial Action
Last amended
effective 10/9/98
Schedule 5
PROCEDURAL RULES GOVERNING SPECIFIED LOCATION OR OTHER
OPERATIONS DURING STRIKES, STOP WORK MEETINGS, OTHER
INDUSTRIAL ACTION AND PROCESSING FAILURES
(Regulation 11.1; Schedule 4, Rule 3.2)
RULE 1
PURPOSE AND POLICY
Purpose of Schedule 5
1.1
The purpose of this Schedule 5 is to consolidate and record the procedures which Tier 1
Participating Members have agreed to follow in the event of the occurrence of a Disabling Event.
The procedures which follow have been adopted upon the basis that it is, and will continue to be,
the foremost aim of Tier 1A Participating Members to provide normal payment clearing services
to the fullest extent possible and for as long a period as possible notwithstanding the occurrence
of a Disabling Event.
Last amended
Effective 20/9/96
Underlying Policy of Participating Members

1.2
Each Tier 1A Participating Member must at all times during the duration of any Disabling Event
(whether such Disabling Event affects that Tier 1A Participating Member or some or all other
Tier 1A Participating Members) use its best endeavours to process all exchanges at the highest
level of efficiency which is reasonably possible in the circumstances. That is to say, preferably
in a normal way, failing which by way of Quasi-Normal Exchanges, failing which bilaterally,
failing which "unofficially".
Inserted effective
22/10/12
LVSS BCP Arrangements

1.3
Each Tier 1A Participating Member must establish, and periodically test, contingency
arrangements to ensure that File Settlement Instructions and, if necessary, File Recall
Instructions can be manually entered during any loss of connectivity to the RITS Low Value
Settlement Service. The industry standard for testing such contingency arrangements is set out
in the LVSS BCP Arrangements which may be accessed via a link on the Companys extranet.
RULE 2
POWERS AND PROCEDURES
Powers of Chief Executive Officer

2.0
The Chief Executive Officer may, from time to time and at his or her own discretion,
delegate (subject to such conditions or restrictions as he or she thinks fit) any of his or her
powers, functions and responsibilities under this Schedule 5 to a suitable employee,
consultant or agent of the Company. Any such delegation must be notified in advance to
the Management Committee.
Inserted
Effective 23/11/99
(b)
In any such case, the Chief Executive Officer will remain accountable to the Board for the
proper discharge and performance of those powers, functions and responsibilities.
Inserted
Effective 23/11/99
(c)
The Chief Executive Officer may remove such a delegate from office at any time.
Inserted
Effective 23/11/99
(d)
Any reference in Schedule 5 (apart from this Rule 2.0) to the Chief Executive Officer is
to be read as a reference to the Chief Executive Officer or his or her delegate under Rule
2.0.
Inserted
Effective 23/11/99
(a)

S5.1
[ABN 12 055 136 519]


2.1
In the event of the occurrence of any Disabling Event or of any development in the course of a
Disabling Event for which provision or exhaustive provision is not made by this Schedule 5 or
by any contingency plan approved by the Management Committee, the course to be adopted will
be a matter for the decision of the Chief Executive Officer. If for any reason it is impossible or
impracticable, within the time constraints imposed by the situation, to submit to the Chief
Executive Officer any matter upon which, under any Rule of this Schedule 5, the Chief
Executive Officer's decision is required and/or to obtain the Chief Executive Officer's decision
on that matter, then the matter must be submitted to, and decided upon by, the chairman of the
Management Committee.
Last amended
Effective 23/11/99
In each such case, the Chief Executive Officer or the chairman of the Management Committee,
as applicable, is to exercise his or her discretion to determine the matter having regard to the
guidelines set out in Appendix K or to any contingency plan approved by the Management
Committee (as appropriate).
Last amended
Effective 22/10/12
Committees - Functions and Procedures

2.2
No reference contained in this Schedule 5 to the making of a decision and the giving of a
direction by the Chief Executive Officer or the chairman of the Management Committee
precludes the submission by the Chief Executive Officer or by the chairman of the Management
Committee (as the case may be) of any question to the Management Committee for advice or
direction. Any meeting of the Management Committee convened for the purpose of giving such
advice or direction may be so convened without the need to give the period of notice specified in
Regulation 7.16.
Agreed Procedures Following Advice of Disabling Event

2.3
In the event that any Tier 1A Participating Member experiences a Disabling Event, that Tier 1A
Participating Member must, at the earliest possible time, give such notification as is required
under any applicable contingency plan approved by the Management Committee; or in the
absence of any such requirement, notify the Chief Executive Officer of that fact and of the
reasons for it.
Last amended
effective 23/11/98
2.3A
Tier 1B Participating Member which experiences a Disabling Event must give such notification
as is required under any applicable contingency plan approved by the Management Committee,
and notify its Tier 1A Representative of the fact, the reasons for it and reach agreement on the
arrangements which are to apply as between the Tier 1B Participating Member and its
Representative for exchanges and settlements during the course of the Disabling Event.
Last amended
effective 23/11/98
2.4
Upon receipt by the Chief Executive Officer of any notification made under Rule 2.3 or in
accordance with any contingency plan approved by the Management Committee, the Chief
Executive Officer will give such notice of the situation as the Chief Executive Officer may
consider appropriate in all the circumstances to all members of the Management Committee and
to each Tier 1A Participating Member and if the Chief Executive Officer considers it necessary
to do so, the Chief Executive Officer may convene a meeting of the Management Committee.
Last amended
effective 23/11/98
For the purposes of these Procedures, a meeting of the Management Committee means:
(a)
a meeting of the Management Committee assembled in person on the same day at the
same time and place; or

S5.2
[ABN 12 055 136 519]


(b)
the members of the Management Committee communicating with each other by any
technological means by which they are able simultaneously to hear each other and to
participate in discussion notwithstanding that they are not all physically present in the
same place,
and a member participating in the meeting under paragraph (b) is deemed to be present
(including for the purposes of constituting a quorum) and entitled to vote at the meeting.
2.4A
In the event of a Disabling Event, notwithstanding any other action which might be taken, the
Chief Executive Officer may, if he considers it appropriate to do so, invoke the Member Incident
Plan, which is available on the Companys extranet, either by written notice to, or verbally
notifying, the Management Committee. The Member Incident Plan provides a framework for
Management Committee communication and consultation during applicable contingency events.
If the Chief Executive Officer invokes the Member Incident Plan, the Management Committee
will comply with its requirements.
2.5
Each Specified Location must be kept open throughout the course of any Disabling Event
experienced by a Tier 1A Participating Member or Tier 1A Participating Members for the
purpose of conducting either normal exchanges or Quasi-Normal Exchanges or bilateral
exchanges as circumstances may dictate.
2.6
In the event that, after one or more full exchanges have been conducted at any Specified
Location during the course of any given day, one or more Tier 1A Participating Members which
participate in the exchanges conducted at that Specified Location gives a notice of the kind
referred to in Rule 2.3, the following provisions will have effect:
(a)
subject to Rule 2.6(b), Quasi-Normal Exchanges and settlements will continue between
all Tier 1A Participating Members which participate in the exchanges conducted at that
Specified Location other than any Tier 1A Participating Member or Tier 1A Participating
Members which, having given a notice of the kind referred to in Rule 2.3, is or are
unrepresented at the relevant exchange or settlement or, being represented, is or are
unable to participate in that exchange or settlement;
(b)
in the event that, following the giving of one or more notices of the kind referred to in
Rule 2.3, the number of Tier 1A Participating Members which normally participate in the
exchanges conducted at the relevant Specified Location and which are still in a position to
participate therein is reduced to such an extent that the Chief Executive Officer decides
that it would be inappropriate to persist in the conduct of Quasi-Normal Exchanges and
settlements in the manner referred to in Rule 2.6(a), then the Chief Executive Officer will
direct that the exchange sheets for the relevant Region be ruled off for that day as at the
last exchange conducted prior to the issue of such direction. Upon any such direction
being given, immediate effect must be given to that direction and settlement must be
effected on the basis of the said exchange sheets in a manner which is as similar to the
usual manner as the circumstances permit; and
(c)
following the giving of a direction of the kind referred to in Rule 2.6(b), and until either
circumstances permit the resumption of normal exchanges and settlements or the Chief
Executive Officer directs that Quasi-Normal Exchanges and settlements will be resumed,
bilateral exchanges will be effected either at the relevant Specified Location or
independently thereof between such Participating Members as are able to conduct them.
All Items accepted on such bilateral exchanges are to be settled for daily by using
exchange settlement funds for value on the next business day. The Reserve Bank of
Australia must be furnished with exchange details of all such bilateral exchanges by the
respective parties to such exchanges upon resumption of normal exchanges in order that
correct interest adjustment calculations can be made.

S5.3
Inserted effective
22/10/12
Last amended
effective 22/10/12
[ABN 12 055 136 519]


RULE 3
INABILITY TO SETTLE
3.1
In the event that by reason of the occurrence of a Disabling Event (and for reasons other than
those provided for under Part 12 of the Regulations, a Tier 1A Participating Member is unable to
settle for Items exchanged with one or more other Tier 1A Participating Members at any one or
more Specified Location, with the consent of the Chief Executive Officer, an agreement may be
made between the Participating Members concerned to defer settlement between them at the
relevant one or more Specified Locations or (if so desired) at all Specified Locations in Regions
in which such Participating Members participate in exchanges. In the event of such an
agreement being reached, and for the duration of the term of such agreement, Items will from
time to time be exchanged on an "unofficial basis" between the parties to such agreement in the
city or cities or location in which such one or more Specified Locations are situated or (as the
case may be) in all cities or locations in which there are situated Specified Locations at which
such parties participate in exchanges.
3.2
Except in the case of money market or other large-value transactions (in relation to which Tier
1A Participating Members may enter into special bilateral arrangements) and subject to Rule 3.3,
each Tier 1A Participating Member must accept for value from its customers Items drawn on
itself and on other financial institutions notwithstanding that it may be impossible for it to
process such Items.
In the event that by reason of the occurrence of a Disabling Event a Tier 1 Participating Member
determines that it will no longer be able to accept the Items of any other financial institution or
financial institutions over its counters (either in one or more Regions or throughout the
Commonwealth of Australia) and/or that it will no longer be able to accept its own Items from
other Participating Members (either in one or more Regions or throughout the Commonwealth of
Australia), such Tier 1 Participating Member must advise the Chief Executive Officer and give
to all other Participating Members advance notice of the date and time upon which such
determination is intended to come into effect. Upon the giving of any notice of the kind to which
this Rule refers, the Chief Executive Officer must prescribe procedures for the resolution of the
situation.
3.3
3.4
In the event that by reason of the occurrence of a Disabling Event (and for reasons other than
those provided for under Part 12 of the Regulations, one or more Tier 1 Participating Members
is, or apprehends that it may be or become, unable to settle for Items exchanged (whether on a
normal or quasi-normal basis) with one or more other Tier 1 Participating Members in any one
or more Regions, the Chief Executive Officer may upon the Chief Executive Officer's own
initiative, and must, if so requested by one or more Tier 1A Participating Members, determine
whether, and if so in what Region or Regions normal exchanges or Quasi-Normal Exchanges are
to be continued:
(a)
between all Tier 1A Participating Members except such, if any, Tier 1 Participating
Members as may expressly agree between themselves that the settlement of exchanges
effected between them will not be deferred;
(b)
between the Tier 1A Participating Member or each of the Tier 1A Participating Members
first referred to in this Rule 3.4 and each other Tier 1A Participating Member, on a basis
of deferred settlement
Last amended
effective 27/09/07
Last amended
effective 20/9/96
Last amended
effective 27/09/07
on a basis of deferred settlement.

S5.4
[ABN 12 055 136 519]


3.5
If the Chief Executive Officer determines pursuant to Rule 3.4(a) or (b) that all exchanges or
particular exchanges are to be continued on a basis of deferred settlement, either throughout the
Commonwealth of Australia or in any one or more Regions the Chief Executive Officer must
cause notice of such determination to be conveyed by telephone or other convenient means to the
chairman of the Management Committee and to each Tier 1 Participating Member.
3.6
If the Chief Executive Officer determines pursuant to Rule 3.4(a) that exchanges between all
Tier 1A Participating Members are to be continued on a basis of deferred settlement, either
throughout the Commonwealth of Australia or in any one or more Regions, such determination
will be binding upon all Tier 1 Participating Members, except to the extent (if any) that any Tier
1 Participating Members expressly agree between themselves that the settlement of exchanges
effected between them will not be deferred.
3.7
If the Chief Executive Officer determines pursuant to Rule 3.4(b) that exchanges between the
Tier 1A Participating Member or each of the Tier 1A Participating Members firstly referred to in
Rule 3.4 and each other Tier 1A Participating Member are to be continued on a basis of deferred
settlement either throughout the Commonwealth of Australia or in any one or more Regions,
such resolution will be binding on all Participating Members.
3.8
In any case where settlement of exchanges has been deferred pursuant to any determination of
the kind referred to in Rule 3.4, the adjustment of interest in terms of Rule 5.2F of Schedule 4
must be made so as to include a calculation of interest on the unsettled balances for the
additional number of days intervening until settlement is effected.
3.9
In every instance where a Tier 1A Participating Member has given notice of the kind referred to
in Rule 2.3 such Tier 1A Participating Member must:
3.10
(a)
from time to time during the duration of the relevant Disabling Event, keep the Chief
Executive Officer fully informed as to the extent to which such Tier 1A Participating
Member is able to participate in operations and in the procedures contemplated by this
Schedule 5 as those which Tier 1A Participating Members have agreed to follow in the
event of the occurrence of a Disabling Event;
(b)
promptly notify the Chief Executive Officer upon the termination (howsoever achieved)
of the relevant Disabling Event; and
(c)
from time to time following the termination of the relevant Disabling Event, notify the
Chief Executive Officer of the processes and activities in which such Tier 1A
Participating Member is able to engage in the course of resuming processing and
exchanges to the normal and usual extent.
Upon receipt of any information or notification of the kind referred to in Rule 3.9, the Chief
Executive Officer will communicate the terms thereof to the members of the Management
Committee and/or to all Tier 1A Participating Members in such manner and to such extent as the
Chief Executive Officer may consider to be appropriate.
RULE 4
4.1
Amended effective
22/10/12
SPECIFIED LOCATION
If, for any reason, a Specified Location becomes inaccessible or otherwise unavailable for use:
(a)
Last amended
effective 4/12/95
whichever of the Manager (if any) and the Regional Co-ordinator or any Deputy Regional
Co-ordinator of the relevant Region first learns of the occurrence, must immediately give
notice of the situation to each other, the Chief Executive Officer and each Tier 1A
Participating Member which participates in that Region;

S5.5
[ABN 12 055 136 519]


(b)
during the currency of the Disabling Event occasioned by the inaccessibility or

unavailability of the Specified Location the affairs of the relevant Region and (to any
extent necessary) clearings generally must be conducted in accordance with such of the
provisions of this Schedule 5 and any contingency plan which may have been approved
by the Management Committee as may be appropriate to the circumstances.

S5.6
[ABN 12 055 136 519]


Schedule 6 - Procedures for Exchange of Other Articles
Schedule 6
PROCEDURES FOR EXCHANGE OF OTHER ARTICLES
AT SPECIFIED LOCATIONS
1.
INTRODUCTION
1.1
The Management Committee recognises that Tier 1A Participating Members have utilised
Specified Locations for the exchange of articles other than Items. Such exchanges have typically
been of a not-for-value "mail" nature.
1.2
Each Specified Location provides a venue at which exchanges of these other articles may take
place between Tier 1A Participating Members which directly attend exchanges of Items at that
Specified Location. Participation in the exchange of other objects is NOT MANDATORY and
Tier 1A Participating Members may prefer to use alternative methods of passing other articles to
other Tier 1A Participating Members - eg. Australia Post, courier etc. However, if participation
in such activities is undertaken, then those activities are to be conducted in accordance with the
following policy.
2.
NATIONAL POLICY
2.1
Articles Exchanged
All articles exchanged are to be exchanged as inter-Tier 1A Participating Member "mail items"
and on a non-value basis. Permitted articles are:
Dishonours
Traces
Warrants
General correspondence
Credit Card Merchant Summary Envelopes
2.2
Company Involvement
Provision of access to premises only.
No involvement in the recording, sorting or delivery of any "mail items".
"Mail items" must not be left at the Specified Location. The Company accepts no responsibility
for any "mail items" which may be left at the Specified Location for any reason whatsoever.
"Mail items" will not be readdressed/redirected for delivery by any other means.
2.3
Participation
Optional. Participation is not mandatory and Tier 1A Participating Members may prefer to use
alternative methods of passing such "mail items" to other Tier 1A Participating Members.

S6.1
[ABN 12 055 136 519]


Schedule 6 - Procedures for Exchange of Other Articles
2.4
Access to Specified Locations

Nominee of Tier 1A Participating Members however, messengers or other staff of Tier 1A
Participating Members may attend as "Visitors" but only by prior arrangement and need to
provide suitable identification.
2.5
Times of Access
At official Item exchange times.
Exchange at times other than official Item exchange times to be at the discretion of the
2.6
Non-Tier 1A Participating Member Usage

Exchange of "mail items" is only generally permitted between Tier 1A Participating Members
which directly exchange Items at the relevant Specified Location. In exceptional circumstances
the Management Committee may authorise attendance by other Participating Members for the
purpose of only exchanging "mail items".
2.7
Appointor/Representative Settlements
Not permitted.
2.8
Manner of Exchange
"Mail items" exchanged are to be contained in a closed "master" envelope/bag addressed only to
the recipient Tier 1A Participating Member and not to individual branches of that Tier 1A
Participating Member.
Master envelopes/bag may only be addressed to Tier 1A Participating Members which attend
exchanges in that Region, not to their Appointors.
The master envelope/bag is to be handed personally to the representative of the recipient Tier 1A
Mail items addressed to individual branches must show the name of the Tier 1A Participating
Member, the name of the branch and associated BSB Number however, such mail items must
be enclosed in the master envelope/bag.
2.9
Credit Card Merchant Envelopes

May be exchanged only as "mail items" as specified above.
May not be exchanged for value as Items - any value consideration to be for bilateral and
separate negotiation between respective Tier 1A Participating Members and to be "settled" by
external means.

S6.2
[ABN 12 055 136 519]


Schedule 7 - Procedural Rules: Outward Clearings
Schedule 7
PROCEDURAL RULES GOVERNING OUTWARD CLEARINGS
1.
A Participating Member which does not directly attend exchanges in a Region may use one or
more Tier 1A Participating Members which do directly attend exchanges in that Region to
receive Outward Clearings from the first mentioned Participating Member and to take those
Outward Clearings to exchanges in that Region and:
(a)
any Outward Clearings of Debit Items received by a Tier 1A Participating Member which
directly attends exchanges in a Region must be accompanied by a credit contra
transaction for an amount equivalent to the total (gross) value of those Debit Items
received; and
(b)
any Outward Clearings of Credit Items received by a Tier 1A Participating Member

which directly attends exchanges in a Region must be accompanied by a debit contra
transaction for an amount equivalent to the total (gross) value of those Credit Items
received.
Last amended
Effective 20/9/96
2.
The parties to any arrangement for processing Outward Clearings made under Rule 1 must
comply with the requirements of Schedule 3 to the extent they apply to Outward Clearings.
Last amended
Effective 20/9/96
3.
Any contra transaction referred to in Rule 1 to effect Outward Clearings must be domiciled back
to the Participating Member first mentioned in Rule 1 (and not to an account with the Tier 1A
Participating Member or any other person). Additionally, any contra transaction referred to in
Rule 1 that is domiciled back to a Tier 1 Participating Member must be encoded with the
relevant transaction code (990 for contra credits [lodged against the gross value of Debit Items]
and 910 for contra debits [lodged against the gross value of Credit Items]), or be capable of
being specifically identified (as having been used for the purposes of effecting Outward
Clearings) by the application of special markings or other methods as may be determined by the
Management Committee from time to time.
Last amended
Effective 20/9/96
4.
Any contra transaction which is domiciled in accordance with Rule 3 and is received by a Tier
1A Participating Member under an arrangement as described in Rule 1 is also to be treated as an
Outward Clearing by that Tier 1A Participating Member and exchanged on the same day by that
Tier 1A Participating Member to the Tier 1A Participating Member which acts as the (inward)
Clearing Representative of the Participating Member first mentioned in Rule 1.
Last amended
Effective 20/9/96
5.
Any Tier 1A Participating Member which effects any Outward Clearings of Debit Items for any
other Tier 1 Participating Member must maintain a continuous record of the values of all such
Outward Clearings of Debit Items over such periods as the Management Committee may
determine from time to time and must make those records available to the Company on demand.
Last amended
Effective 20/9/96

S7.1
[ABN 12 055 136 519]


Schedule 8 - Approved Representation Arrangements
Schedule 8
APPROVED REPRESENTATION ARRANGEMENTS
Schedule 8 is located separately

S8.1
[ABN 12 055 136 519]


Schedule 9 Contact Numbers of The Reserve Bank of
Australia RITS Low Value Settlement Service
Schedule 9
CONTACT NUMBERS
OF THE RESERVE BANK OF AUSTRALIA
RITS LOW VALUE SETTLEMENT SERVICE
Last amended
effective 22/10/12
Last amended
effective 4/12/95
Last amended
effective 22/10/12
RITS Low Value Settlement Service

Principal
Assistant Manager,
Electronic Distribution Services
Last amended
effective 27/09/07
Telephone:
(02) 9551 9974
Fax:
(02) 9551 8013 (for the NSW Region)

(02) 9551 8092 (for all Regions other than NSW)
Secondary
Last amended
effective 27/09/07
Senior Operator,
Electronic Distribution Services
Telephone:
(02) 9551 9975
Fax:
(02) 9551 8016
Emergency
Systems and Technology Department,
Computer Operations Help Desk
Telephone:
(02) 9551 9487 (primary site) or

(02) 9853 9487 (backup site)
Last amended
effective 27/09/07

Schedule 10 is Confidential

S9.1
[ABN 12 055 136 519]


Schedule 10 - Other General Agreements Between Institutions
Confidential
Schedule 10
OTHER GENERAL AGREEMENTS BETWEEN INSTITUTIONS
(Previously agreed under the Record of Arrangements Between Banks)
Confidential
Note: This Schedule 10 deals with the procedures for limited for-value paper exchanges between
Participating Members (see Rule 1.1). Individual topics in this Schedule that apply also to not-for-value
paper Items exchanged by electronic means are marked with an asterisk [*]. The procedures for electronic
exchanges and dishonours are dealt with in Schedule 11.
Last amended
effective 8/3/99
1.
FOR-VALUE PAPER EXCHANGES BETWEEN INSTITUTIONS
Last amended
effective 1/7/98
1.
A drawee Institution which wishes to make use of the internal presentment provisions of the
Cheques Act 1986 in relation to Cheques delivered to it at exchanges conducted under these
Procedures, must register with the Company (as the eligible authority) any places intended to
be notified places for the purposes of effecting internal presentment (see s65A, Cheques Act
1986). Notified places allow for internal presentment of a Cheque to be effected by the drawee
Institution exhibiting the Cheque to itself at a place such as a processing centre (ie. a place other
than the proper place for the Cheque).
Last amended
effective 20/7/09
2.
A drawee Institution which wishes to provide for a collecting Institution to make demand on it,
under the external presentment provisions of the Cheques Act 1986, by exhibiting the Cheque to
it at a place other than the proper place in relation to the Cheque, must publish in the
Commonwealth of Australia gazette details of each such designated exhibition place by notice
in the prescribed form (see Cheques Regulations 1987).
Last amended
effective 22/01/09
1.1
Restriction on For-Value Paper Exchanges
Inserted effective
8/3/99
On and from 30 April 1999, only those Debit Items for which a special clearance is sought in
terms of Rule 2.1.4 or have an invalid or incomplete codeline and Credit Items may be
exchanged for value in accordance with the Procedures in this Schedule 10.
Last amended
effective 24/3/03
Notes:
1.1.1
[Deleted]
1.1.2
[Deleted]
1.1.3
[Deleted]
Deleted
Effective 1/7/98
1.1.4
Agency Cheques
Last amended
Effective 3/6/02
The BSB Numbers used for Agency Cheque arrangements are separately listed in the Publication
"BSB Numbers in Australia" available from the Company.
Last amended
Effective 3/6/02
1.1.4.1
Agency Cheque Arrangement [deleted]
Deleted
Effective 3/6/02
1.1.4.2
Payment Orders [deleted]
Deleted
Effective 3/6/02

S10.1
[ABN 12 055 136 519]


Confidential
1.2
[Deleted]
1.3
Credit Transfers to Accounts at Another Institution
1.3.1
Basic Clearance Procedure - Paper Items

Credit transfers, if not on a personalised form issued by the transferee Institution, are to be in the
form set out in Appendix A7. They are to be sent through the exchanges, except that in the
following cases they must be forwarded direct to the ledger branch of the transferee Institution
using an Advice of Direct Remittance (as set out in Appendix A5) and a Drawing for Direct
Remittance (as set out in Appendix A4):
Last amended
Effective 20/10/99
If the remitter requests the direct service,

If an attachment is to be forwarded with the credit.
The Drawing for Direct Remittance must accompany the Item in the mail and the Advice of
Direct Remittance is to be processed through the normal exchanges to the transferee Institution.
Both forms are to have the BSB Number of the ledger branch of the transferee Institution preindicated by the sending Institution.
Last amended
Effective 20/10/99
1.3.2
[Deleted]
Deleted
Effective 1/7/98
1.3.3
Lists of Debit Items Lodged with Credit Transfers

Lists of Items lodged with credits are to be retained by the collecting Institution.
1.3.4
[Deleted]
1.3.5
Lost Credit Transfers

If a customer advises that a credit has not reached his account, the branch of the Ledger
Financial Institution concerned must contact the branch of the remitting Institution concerned for
confirmation of lodgement. In the event that an investigation discloses the transfer to be lost
within the remitting Institution's system, reimbursement is to be effected by that Institution (see
Rule 3.5).
*1.3.6
Debit Items Lodged on Credit Transfers and Subsequently Dishonoured
* added:
effective 1/7/98
Where Item is to be debited to depositing customer's account:

Such dishonoured Items are to be treated in either of the following methods by the collecting
Institution depending on the particular collecting Institution internal instructions:
(a)
Collecting Institution is to forward the dishonoured Item, by direct remittance (using the
procedure outlined in Rule 2.1.5) to the ledger branch of the Ledger Financial Institution
concerned.
Both the credit and debit direct remittance vouchers are to be noted as follows:
Dishonoured Item included in our Credit Transfer of (date) for $ ........... in favour
of ..................... .
Upon receipt of the direct remittance, Ledger Financial Institution is to process the
dishonoured Item in accordance with its internal instructions.

S10.2
[ABN 12 055 136 519]


Confidential
Or
(b)
Collecting Institution is to forward the dishonoured Item, together with notice of

dishonour, direct to other Institution customer who lodged the Item.
Collecting Institution is to obtain value for the Item by drawing on the ledger branch of
the Ledger Financial Institution concerned for the amount involved using a Drawing
Debit (as set out in Appendix A6).
Last amended
Effective 20/10/99
The Drawing Debit is to incorporate:
Last amended
Effective 20/10/99
full details of the dishonoured Item, plus

a notation that the Item has been returned direct to the Ledger Financial
Institution's customer who has been given notice of the dishonour,
and is to be forwarded to the branch of the Ledger Financial Institution concerned by
direct remittance (using the procedure outlined in Rule 2.1.5).
The debit direct remittance voucher is to be noted as follows:
Dishonoured Item included in our Credit Transfer of (date) for $ ................. in favour of
.................................. .
Collecting Institution may draw on Ledger Financial Institution for its normal dishonour
fee.
1.3.6.2
Deleted
Effective 18/3/96
[Deleted]
1.4
[Deleted]
Deleted
Effective 1/7/98
1.5
[Deleted]
Deleted
Effective 1/7/98
2.
REMITTANCES & SPECIAL CLEARANCES
Note:
The following interpretations apply in this Rule 2. The term paying Institution in relation to
Agency Cheques includes, where applicable, the drawee Institution and the relevant non-drawee
Issuer to which the drawee Institution has delegated authority to answer requests for special
clearance. Such non-drawee Issuers are referred to in this Rule 2 as Delegated Non-drawee
Issuers and are listed in Appendix D2 and Appendix D11. Changes to details published in
Appendix D2 and Appendix D11 must be promptly notified to the Company in accordance with
requirements set out in the Preamble to Schedule 11 of these Procedures.
Last amended
effective 25/7/08
If a drawee Institution chooses to delegate to a non-drawee Issuer authority to directly answer

requests for special answers in relation to Agency Cheques, the drawee Institution remains
ultimately responsible for answers given by the non-drawee Issuer pursuant to that delegated
authority.
Last amended
effective 25/7/08
The term collecting Institution means, in relation to an Item, the Participating Member
(whether that member is a bank or non-bank financial institution) with which that Item has been
deposited for collection.
Inserted effective
3/6/02

S10.3
[ABN 12 055 136 519]


Confidential
2.1
2.1.1
Last amended
effective 3/6/02
SPECIAL CLEARANCES AND SPECIAL ANSWERS

Basic Clearance Procedure - Paper Items
Institutions must, subject to the exceptions in the ensuing Rules, clear all Items to their
appropriate clearing centre for exchanges at Regional Centres.
2.1.2
2.1.3
Agency Cheques and Delegated Authorities to Non-drawee Issuers
Inserted
effective 3/6/02
Special answer requests in relation to Agency Cheques may only be directed to a non-drawee
Issuer in accordance with Rule 2.1.4 if the non-drawee Issuer is listed in Appendix D2 and
Appendix D11 as having been delegated authority by the drawee Institution to directly respond
to requests for special answers.
Last amended
effective 25/7/08
For a non-drawee Issuer to be listed in Appendix D2 and Appendix D11 as having been
delegated authority as an agent of the drawee Institution to directly respond to requests for
special answers of Agency Cheques which are issued by that non-drawee Issuer, the drawee
Institution in relation to those Agency Cheques must notify the Company in writing that the nondrawee Issuer has been delegated authority to directly respond to special answer requests in
relation to Cheques drawn on that drawee Institution. A notice under this Rule 2.1.2 must also
contain particulars of the facsimile and telephone number for the non-drawee Issuer to which
requests for special answers in relation to Agency Cheques issued by that non-drawee Issuer may
be directed.
Last amended
effective 25/7/08
A drawee Institution which has delegated authority to a non-drawee Issuer and notified the
Company of that delegation under this Rule 2.1.2 may withdraw such delegated authority by
written notice to the Company. The withdrawal of such delegated authority takes effect upon
notice of the withdrawal by the Company to Participating Members.
Last amended
effective 25/7/08
Special Exchange of and Settlement for an Item $1 million and over in centres where
inclusion on Capital City exchanges the same day is not assured
Last amended
effective 3/6/02
An Institution shall have the right to deliver within business hours for immediate clearance an
individual Item of $1M or more drawn on a local branch of another Institution. Settlement to be
effected between Capital City offices within the day (up to 4.30 pm Monday to Thursday and up
to 5.00 pm Friday).
The form of request shall be written on a schedule in duplicate listing the voucher and signed by
an authorised officer under branch stamp, with the duplicate copy being receipted by the paying
Institution, indicating that Item is paid and settlement will be effected as requested.
Paying Institution to advise Chief/State/Territory Office by telex/telephone immediately as
follows:
"Pay ........... (nominated Institution) ......... the sum of ........... (encoded amount)
............. being settlement of special exchange at ...................................... branch on ..............
(date)."
Last amended
effective 3/6/02
Collecting Institution to advise Chief/State/Territory office by telex/telephone immediately as

follows:
'We have requested ..................(nominated Institution).............to pay you the sum of
................(encoded amount)..........being settlement of special exchange at............... branch
on ............... (date).'

S10.4
Last amended
effective 3/6/02
[ABN 12 055 136 519]


Confidential
2.1.4
Special Clearances and Special Answers
Last amended
effective 3/6/02
Note: Participating Members should refer to Rule 4.6 for optional precautions in relation to
providing special answers, for the purpose of preventing the use of special answers and special
clearances as avenues for fraud.
Last amended
effective 3/6/02
*2.1.4.1
*2.1.4.2
Presentment/Special Answers
Last amended
effective 3/6/02
Presentment is effected by making a demand for payment on the drawee Institution

at the proper place, notified place or designated exhibition place (see Rule 1) in
relation to the Item.
Last amended
effective 3/6/02
Special answers can be sought in accordance with Rules 2.1.4.2 and 2.1.4.3 for
relevant Items which have been sent in the normal (for-value paper) exchanges or in
respect of which electronic presentment within the terms of Schedule 11 has been
duly effected.
Last amended
effective 3/6/02
Special clearances may be effected using the personal presentment method specified
in Rule 2.1.4.4.
Inserted effective
3/6/02
Special Answer Requests by Facsimile
Last amended
effective 3/6/02
Where both the collecting Institution/branch and the drawee Institution/Delegated

Non-drawee Issuer branch have facsimile machines, a special answer may be
requested and given in accordance with the procedures set out in this Rule 2.1.4.2.
Last amended
effective 3/6/02
Collecting Institution
This method must be used wherever possible for all special answer requests. The
telephone method for requesting special answers may only be used as a fallback
where both the collecting Institution/branch and the drawee Institution/Delegated
Non-drawee Issuer do not have facsimile facilities available at the time the special
answer request is to be made (because either one of the Institutions has no current
facsimile number specified in Appendix D2 or the machine having the specified
number is inoperative).
Inserted effective
3/6/02
The collecting Institution is to send the Item to the drawee Institution through
the normal (for-value paper) exchanges or by making demand for payment in
electronic form in accordance with applicable procedures (see Schedule 11).
Last amended
effective 3/6/02
The collecting Institutions special answer number and its identification stamp
must appear on the reverse of the Item.
Last amended
effective 1/7/98
A wire/phone/fax fate docket must not be attached to the Item.

The collecting Institution must send a special answer request to the drawee
Institution/Delegated Non-drawee Issuer to ascertain the fate of the Item. The
form set out in Appendix C1 may be used if a facsimile request is made.
Alternatively, an electronic version of Appendix C1 (as a rich text format
attachment) may be used if the request is made by e-mail transmission.
Last amended
effective 30/10/02
Only one request per form is allowed.

The collecting Institution may include with its special answer facsimile request
a copy of the Item in respect of which it is seeking a special answer.

S10.5
[ABN 12 055 136 519]


Confidential
The special answer facsimile request must be sent as early as possible on the
next business day following the day of exchange of the Item, but in any event
not later than 12 noon, senders local time on that day.
Last amended
effective 3/6/02
The special answer facsimile request must include:

drawers name and account number
serial number of the Item
amount of the Item
special answer number (as recorded on reverse of the Item)
BSB Number appearing in the MICR code line on the Item
date that the Item was processed (through the normal exchanges) by the
collecting Institution branch
the full name, telephone number and facsimile number of the requesting
officer.
Amended effective
22/03/06
The collecting Institution must ensure that it sends its facsimile request to the
correct facsimile number for the drawee Institution/Delegated Non-drawee
Issuer. The collecting Institution may ascertain the correct facsimile number
for the drawee Institution/Delegated Non-drawee Issuer by referring to the list
of special answer facsimile request numbers of those Participating Members
which have centralised contact points, specified in Appendix D2. Changes to
these contact details must be promptly notified to the Company in accordance
with requirements set out in the Preamble to Schedule 11 of these Procedures.
Amended effective
21/04/06
The collecting Institution must not send a follow up message to the drawee
Institution/Delegated Non-drawee Issuer within three hours after sending its
special answer facsimile request and may send only one follow up message on
any one day.
Last amended
effective 3/6/02
The collecting Institution must notify changes to contact details in Appendix

D2 in accordance with the requirements set out in the Preamble to Schedule 11
of these Procedures.
Inserted
effective 24/1/05
Last amended
effective 3/6/02
Drawee Institution/Delegated Non-drawee Issuer

The drawee Institution/Delegated Non-drawee Issuer must answer the
facsimile special answer request during the day of receipt of the request subject
to the following exceptions:
Last amended
effective 3/6/02
if exhibition of the voucher is required by the drawee Institution and the

Item is not to hand by close of business on the day of receipt of the
special answer facsimile request in which case see below;
Inserted effective
3/6/02
the collecting Institution agrees to a later response, or
Inserted effective
3/6/02
the special answer facsimile request has been sent before the business
day next following the day of exchange of the Item.
Inserted effective
3/6/02
Advice of payment or dishonour must be promptly communicated by

completing the reply section of the special answer facsimile request form
received from the collecting Institution and returning it by facsimile to the
collecting Institution by close of business (receiving points local time).

S10.6
Last amended
effective 3/6/02
[ABN 12 055 136 519]


Confidential
The full name and telephone number of the replying officer must be included
in the facsimile response given by the drawee Institution/Delegated Nondrawee Issuer.
Amended effective
22/03/06
Only one reply per form is allowed.

If there is actual or suspected fraudulent activity, then reference to this may be
made in the Additional Details part of the reply section of the form and the
procedures outlined in Rule 2.2.12 should be followed.
If exhibition of the voucher is required and the Item has not been exhibited to
the drawee Institution then the drawee Institution/Delegated Non-drawee
Issuer may defer a decision on the Item. In these cases, a Deferred-Voucher
Required answer is to be provided to the collecting Institution by facsimile
and the special answer facsimile request form held for the next days answer.
A Voucher Required message must also be sent to the collecting Institution if
the Item has been presented by electronic means (the procedures set out in
Schedule 11 are to be followed). On the next business day the advice of
payment or dishonour must be promptly communicated by the drawee
Institution/Delegated Non-drawee Issuer by inserting the answer in the
"Additional Details" reply section on the form and returning it by facsimile to
the collecting Institution by no later than 12 noon (senders local time).
Last amended
effective 25/7/08
If the Item is to be dishonoured or answered as Item not yet to hand and;
Last amended
effective 8/3/99
(a)
it has been exchanged for-value in paper exchanges, the dishonour

procedures in Schedule 10 are to be followed, or
(b) it has been presented by electronic means, the dishonour Procedures in

Schedule 11 are to be followed.
The drawee Institution/Delegated Non-drawee Issuer is to retain the facsimile
form as its record.
*2.1.4.3
Last amended
effective 3/6/02
[Note deleted].
Deleted
effective 3/6/02
Special Answer Requests by Telephone
Last amended
effective 3/6/02
The facsimile method for requesting special answers must be used wherever
possible for all special answer requests. However, where either or both of the
collecting Institution and the drawee Institution/Delegated Non-drawee Issuer do
not have operational facsimile machines at the time a special answer request is to
be made, a special answer may be requested and given in accordance with the
procedures set out in this Rule 2.1.4.3.
Inserted effective
3/6/02
A collecting Institution may obtain a special answer by sending the Item to the
drawee Institution through the normal (for-value paper) exchanges or by
making demand for payment in electronic form in accordance with applicable
procedures (see Schedule 11).
Last amended
effective 3/6/02
The collecting Institutions special answer number and its identification stamp
must appear on the reverse of the Item.
Last amended
effective 1/7/98
A wire/phone/fax fate docket must not be attached to the Item.

S10.7
[ABN 12 055 136 519]


Confidential
The collecting Institution may telephone the drawee Institution/Delegated
Non-drawee Issuer to ascertain the fate of the Item. The special answer
telephone request must be made as early as possible on the next business day
following the day of exchange of the Item, but in any event not later than 12
noon, callers local time on that day, unless bilaterally agreed otherwise.
Last amended
effective 3/6/02
The collecting Institution must quote:
Inserted effective
3/6/02
drawers name and account number

serial number of the Item
amount of the Item
special answer number (as recorded on reverse of the Item)
BSB Number appearing in the MICR code line on the Item
date the Item was processed (through the normal exchanges) by the
collecting Institution branch
Last amended
effective 3/6/02
The collecting Institution must ensure that it telephones the correct telephone
number for the drawee Institution/Delegated Non-drawee Issuer. The
collecting Institution may ascertain the correct telephone number for the
drawee Institution/Delegated Non-drawee Issuer by referring to the list of
special answer telephone request numbers of those Participating Members
which have centralised contact points specified in Appendix D11. Changes to
these contact details must be promptly notified to the Company in accordance
with requirements set out in the Preamble to Schedule 11 of these Procedures.
Last amended
effective 24/1/05
If the drawee Institution/Delegated Non-drawee Issuer does not have a

centralised contact point specified in Appendix D11, then the collecting
Institution must telephone the relevant branch of the drawee
Institution/Delegated Non-drawee Issuer to ascertain the correct telephone
number.
Inserted effective
3/6/02
The collecting Institution is to record:date and time that the answer is given
answer given
full name and status of the officer of the drawee Institution/Delegated
Non-drawee Issuer who provided the answer
Last amended
effective 3/6/02
After receipt of advice of payment or dishonour, the collecting Institution may

immediately telephone back to the drawee Institution/Delegated Non-drawee
Issuer to confirm the answer (optional).
Last amended
effective 3/6/02
Last amended
effective 3/6/02
Drawee Institution/Delegated Non-drawee Issuer

The drawee Institution/Delegated Non-drawee Issuer must answer the
telephone special answer request during the day of receipt of the collecting
Institutions telephone request subject to the following exceptions:
Last amended
effective 3/6/02
if exhibition of the voucher is required by the drawee Institution and the

Item is not to hand by close of business on the day of receipt of the
special answer telephone request - in which case see below;
Last amended
effective 3/6/02
the collecting Institution agrees to a later response, or

the special answer request has been made before the business day next
following the day of exchange of the Item.

S10.8
[ABN 12 055 136 519]


Confidential
If exhibition of the voucher is required and the Item has not been exhibited to
the drawee Institution, then the drawee Institution/Delegated Non-drawee
Issuer may defer a decision on the Item. In these cases, a Deferred Voucher
Required answer is to be provided to the collecting Institution. A Voucher
Required message must also be provided to the collecting Institution if the
Item has been presented by electronic means (the procedures set out in
Schedule 11 are to be followed).
If the Item is to be dishonoured or answered as Item not yet to hand and;

(a)
Inserted effective
3/6/02
Last amended
effective 3/6/02
it has been exchanged for-value in paper exchanges, it must be

processed in accordance with Rule 2.2 of this Schedule 10,
or
(b) the relevant demand for payment has been made by electronic means, it
must be processed in accordance with Rule 2 of Schedule 11.
The drawee Institution/Delegated Non-drawee Issuer is to record:date and time that the answer is given
answer given
full name and status of the officer of the drawee Institution/Delegated
Non-drawee Issuer who provided the answer
full name and status of the officer of the collecting Institution to whom
the answer was provided
2.1.4.4
Last amended
effective 3/6/02
Last amended
effective 3/6/02
[Note deleted].
Deleted effective
3/6/02
Special Clearances by Personal Presentation
Last amended
effective 3/6/02
A collecting Institution may obtain a special answer by having one of its own
officers personally deliver the Item to the drawee Institution.
Last amended
effective 3/6/02
The collecting Institution is to complete the form set out in Appendix C12.
Inserted
effctive 11/10/06
Delivery may be made between 9.30am and 4.00pm (Mon-Thu) and 5.00pm
(Fri).
The collecting Institution's identification stamp must appear on the front of the
Item.
Last amended
effective 11/10/06
[Bullet point deleted]
Deleted
effective 11/10/06
Last amended
effective 3/6/02
Drawee Institution
The drawee Institution must either pay or dishonour the Item at the time of
receipt.
Last amended
effective 3/6/02
If the Item is paid payment should be made by RTGS transfer or as mutually

agreed. The answer is to be recorded on the Special Answer Request by
Personal Presentation form with the lower section of the form returned to the
officer of the collecting Institution who personally delivered it. The drawee
Institution may retain the upper section of the form for its own records.
Last amended
effective 11/10/06

S10.9
[ABN 12 055 136 519]


Confidential
[Bullet point deleted]
Deleted
effective 11/10/06
If the Item is dishonoured, the drawee Institution must record the answer on the
reverse of the Item and on the Special Answer Request by Personal
Presentation form, and return the lower section of the form and the Item to the
officer of the collecting Institution who personally delivered it.
Last amended
effective 11/10/06
Note to Rule 2.1.4.4
Inserted
effective 3/6/02
1.
Agency Cheques may not be personally presented to non-drawee issuers

(including Delegated Non-drawee Issuers) except where a place of the Nondrawee Issuer is specified as a designated exhibition place of the drawee
Institution.
Inserted
effective 3/6/02
2.
A courier, instead of an officer of the collecting Institution, may be engaged to

deliver the Item to the drawee Institution and/or to collect the drawee
Institutions subsequent payment answer or dishonour (as applicable). The
Item, the payment (except in the case of a RTGS transfer), or the dishonoured
Item together with the lower section of the Special Answer Request by Personal
Presentation form must be enclosed in a sealed envelope addressed to the
respective recipient Institution. All other provisions in this Rule 2.1.4.4 will
still apply.
Last amended
effective 11/10/06
3.
A Warrant or several Warrants must not be used to pay an Item over

$500,000: see Rule 3.1.
Last amended
effective 3/6/02
2.1.4.5
[Deleted]
Deleted effective
3/6/02
*2.1.4.6
Special Answers - Subsequent Dishonours
Last amended
effective 8/3/99
Once a Special Answer of paid is communicated by a drawee

Institution/Delegated Non-drawee Issuer to a collecting Institution in respect of an
Item, the Item may not be subsequently dishonoured without the express consent of
the collecting Institution.
Last amended
effective 3/6/02
The collecting Institution must not provide its express consent unless it has already
obtained the express consent of the party or parties to whom the special answer of
paid has been communicated.
The drawee Institution/Delegated Non-drawee Issuer may request that the express
consent, given by the collecting Institution to the drawee Institution/Delegated Nondrawee Issuer, be made in writing.
2.1.5
Last amended
effective 3/6/02
Direct Remittance Procedure

2.1.5.1
Direct Remittance must be forwarded by a composite fanfold form comprising an

Advice of Direct Remittance (as set out in Appendix A5) and a Drawing for Direct
Remittance (as set out in Appendix A4).
Last amended
effective 20/10/99
2.1.5.2
The collecting Institution will clear the Drawing for Direct Remittance in terms of
Rule 2.1.1. through its appropriate State/Territory Clearing Centre.
Last amended
effective 20/10/99

S10.10
[ABN 12 055 136 519]


Confidential
2.1.6
Direct Remittance - Non Arrival of: (Other than a Dishonoured Item Forwarded as a
Direct Remittance (see Rule 2.2))
When the branch of the drawee Institution receives a drawing before the remittance, the drawing
is to be held until the next business day. If the remittance is not then to hand, the branch or
centre of the collecting Institution where the Item was processed is to be advised by telephone
and the drawing returned to it.
The procedure covering lost Items (see Rule 2.4) must be carried out by each of the drawee
Institution and the collecting Institution.
In the event of the remittance being subsequently received the collecting Institution is to be
advised to that effect by telephone.
2.1.7
[Deleted]
2.1.8
[Deleted]
2.1.9
Bill for Collection
Last amended
effective 22/01/09
In order to send a bill for collection an Institution may complete the Bill for Collection set out in
Appendix C14 and forward the form to the relevant paying Institutions contact point listed in
Appendix D18. Changes to these contact details must be promptly notified to the Company in
accordance with requirements set out in the Preamble to Schedule 11 of these Procedures.
2.1.10
A paying Institution receiving a Bill for Collection for an Item designated in Rules 2.1.10 and
2.1.11 will act on the form and, where necessary, provide a response.
Inserted
Effective 19/04/07
Debit Items Received for Collection
Last amended
effective 22/01/09
(Other than by personal presentation (see Rule 2.1.4.4)).

Items must be paid (or in the event of non-payment returned as a dishonour) no later than:
Close of business on day of receipt,
or
Where special instructions are received, eg 'Hold 7 days if necessary', at close of business
on the last day of nominated term.
2.1.11
Debit Items/Withdrawals for Balances of Accounts Received for Collection
Last amended
effective 25/7/08
(Other than by Personal Presentation (see Rule 2.1.4.4))

Items are to be dealt with expeditiously - on day of receipt where possible, but no later than the
following business day.
*2.1.12
Debit Items with Differing Amounts
Last amended
effective 1/7/98
In the event of an Item with differing amounts being negotiated for the higher amount, the
paying Institution is to make use of a Drawing Debit (as set out in Appendix A6) for the
adjustment of the values.
Last amended
effective 20/10/99

S10.11
[ABN 12 055 136 519]


Confidential
The Drawing Debit must be processed within the same time frame as a dishonour, in terms of
Rule 2.2.1.2, or, as applicable, a dishonour decision in terms of Schedule 11, Rules 2.7 to 2.9
inclusive, and must show:
Drawer's name and full codeline of the Item
Date and Payee's name
Trace details
Correct Amount
2.1.13
Debit Items Presented for Payment Drawn on Accounts which have been Transferred.
2.1.13.1
Accounts transferred to another branch of the Institution on which the Item is

domiciled:
Where an Item received is drawn on an account which has transferred to another
branch of the same Institution, the Item may either be dishonoured (refer Rule
2.1.13.2 below) or redirected to the branch to which the account was transferred.
Where the Item is redirected, the transferor branch is to:
forward the Item to the transferee branch in the most expeditious manner
available;
immediately send a Notice of Redirection to the collecting Institution. The
notice is to include the following details:
drawer
payee
amount
serial number
Item date
date deposited (if known)
complete trace line showing on the reverse of the Item
tellers stamp number
name of the branch to which the Item has been redirected.
The notice is to also include a statement that additional time should be allowed for
clearance.
in the event a Notice of Redirection is not immediately sent to the collecting
Institution, then the paying/redirecting Institution is to accept responsibility for
any resulting liability (or risk) that may accrue to the collecting Institution.
Should a dispute arise in this respect:
the matter is to be referred to each Institution's Administration for
determination as to where the loss (if any) or how the apportionment thereof
will fall, having regard to the merits of the case; and
if the dispute remains unresolved, either Institution may refer it to the
Management Committee for resolution.

S10.12
[ABN 12 055 136 519]


Confidential
2.1.13.2
Accounts transferred to another Institution:

Where an Item received is drawn on an account which has been transferred to
another Institution, the Item is to be dishonoured (see Rule 2.2) endorsed with the
answer:
"Account transferred to ................................... (Institution/branch)".
[Exception: In a situation involving an account which has a high volume of Items
drawn on it, the transferor and transferee Institutions concerned may make a bilateral
arrangement to enable redirection of the Items. This should be agreed at the time of
account transfer however, in doing so, they are to take into account additional
clearance time and loss of recourse considerations in the event the collecting
Institution is not advised of redirection.]
2.2
2.2.1
Last amended
effective 1/7/98
Last amended
effective 25/7/08
DISHONOURED DEBIT ITEMS

Time Limits for Return of Dishonoured Items
2.2.1.1
Bills, Promissory Notes and Acceptances dishonoured must be returned on day of

presentment.
2.2.1.2
Except in the case of a 'Special Clearance' (see Rule 2.1) and bills etc (see Rule
2.2.1.1) Cheques and other Items must be dishonoured no later than:
Last amended
effective 25/7/08
The business day following receipt of the Item, in cases where ledgers are
posted within the drawee Institution office/branch.
The business day by which both the Item and relative reports showing the state
of the account have been received at the branch, in cases where ledgers are
posted remotely, by computer or otherwise.
2.2.2
Delivery/Despatch of Dishonoured Items

Debit Items which have been cleared by a Representative, on behalf of an Institution that does
not attend the exchanges at the Regional Centre concerned may bear the stamps of more than one
Institution. Dishonoured Items (or, in the case of Australia Post money orders, photocopies - see
Rule 2.2.3) so stamped must be returned direct to the collecting Institution and the stamp(s) of
the Representatives is/are to be disregarded (See Rule 2.3). See Schedule 8 for a table of nonattending Institutions which are drawees of Items. (Non-drawees do not attend.)
2.2.3
Return of Dishonoured Items

Any dishonoured Item (or photocopy in the case of an Australia Post money order) must be
returned to the collecting Institution, using an Advice of Dishonoured Item Returned Direct (as
set out in Appendix A3). An exception is where the Item has been presented by personal
presentment: see Rule 2.1.4.4.
Last amended
effective 3/6/02
The Advice of Dishonoured Item Returned Direct (as set out in Appendix A3) and the
corresponding Drawing for Dishonoured Item Returned Direct (as set out in Appendix A2) (see
Rule 2.2.5) must both bear the same 6-digit identifier in their respective AUX DOM fields, the
relevant Transaction Codes in their respective Transaction Code fields, and the relevant answer
(see list in Rule 2.2.3.1).
Last amended
effective 27/4/00

S10.13
[ABN 12 055 136 519]


Confidential
The identifier must consist of 6 digits and be either:
the dishonoured Item serial number, or
a unique sequential number within the initiating Institution, or
a unique sequential number within that branch of the initiating Institution, or
the initiating branch BSB Number (large branches/processing centres should NOT use the
BSB Number, as this is not considered a unique enough identifier for reconciliation
purposes at the collecting Institution).
The Transaction Codes must be:
12 for the pro-forma debit, and
58 for the credit advice.
2.2.3.1
Last amended
effective 1/7/98
Standard Answers:
Note: It is up to each Institution to establish internal procedures to ensure that the
answers set out in this Rule are used only in appropriate circumstances, in order to
minimise its potential exposure to legal liability associated with the use of an
incorrect answer (eg. in defamation)
2.2.3.1.1
Inserted
effective 31/12/99
Debit Items Other Than Financial Institution Cheques, Australia Post Money
Orders, Warrants and Travellers Cheques
Standard Answers
Situations When Used
Account cannot be identified
Where the drawee Institution cannot

identify any account to which the Cheque
can be posted.
Account closed
Where account has been closed by

customer
Account transferred to [record

BSB of transferee Institution.]

customer and transferred to another
Institution.
Alteration requires drawers initial
Where drawee Institution requires initials

to alteration.
Alteration requires drawers

signature
Where drawee Institution

signature to alteration.
Another signature required
Where more than one drawers signature

is required.
Arrangements incomplete
Where funds should be available after

arrangements are completed.

S10.14
Inserted
effective 11/9/06
Last amended
effective 30/10/02
requires
[ABN 12 055 136 519]


Confidential
AUD instrument not payable in
Australia
Where an AUD instrument not payable in

Australia is received (these instruments
are excluded under Rule 3.5 in Schedule
4 from being included in any exchange).
Inserted effective
22/03/04
Note: If an AUD instrument not payable

in Australia is dishonoured with this
standard answer the dishonour may not
be refused and the AUD instrument must
not be represented through the APCS.
The provision of this standard answer in
respect of an AUD instrument not
payable in Australia in no way implies
that the APCS Regulations and these
Procedures, other than Rules 3.5 in
Schedule 4, 2.2.3.1.1 in Schedule 10 and
2.10.1 in Schedule 11, apply with respect
to such AUD instruments.
Drawer deceased
Where more than 10 days have elapsed

since drawee Institution received advice
of the drawers death or where a lesser
time has elapsed and countermand of
payment has been received from a person
claiming entitlement to administer the
deceaseds estate or claiming to be a
beneficiary of the estate.
Drawers confirmation required.

Please represent.
Where a drawee Institution has not

received an MT 110 (or some other form
of advice with similar information
content) in relation to an overseas issued
on-demand
Australian
dollar
denominated (AUD) draft (see Rule 3.2).
Drawers signature required
Where drawers signature is required.
Effects not clear
Where there are sufficient funds but

drawing is against uncleared funds
Foreign currency draft
Where a foreign currency denominated

draft is received (these payment
instruments are excluded under Rule 3.5
in Schedule 4 from being included in any
exchange).

S10.15
Inserted
effective 31/12/99
Inserted effective 17/3/03
[ABN 12 055 136 519]


Confidential
Note: If a foreign currency denominated
draft is returned with this standard answer
the return may not be refused and the
draft must not be re-presented through the
APCS. The provision of this standard
answer in respect of foreign currency
denominated drafts in no way implies that
the APCS Regulations and these
to foreign currency denominated drafts.
Last amended
effective 31/12/99
Forged or counterfeit instrument
Where forgery or counterfeit is

confirmed, whether in respect of a
Suspected Counterfeit Cheque (see Rule
4.2.3(c)(ii)) or otherwise.
Item not yet to hand
Where exhibition of a Cheque is required

to effect presentment and the voucher has
not arrived at the drawee Institution by
the required day.
Last amended
effective 25/7/08
Mutilated
Where mutilated Cheque is not confirmed

by the signature of the drawer or the
collecting Institution.
Last amended
effective 25/7/08
No account
Where the drawee Institution has the

voucher but cannot apply it to any
account.
Not authorised
Where forgery or counterfeit is suspected,

whether in respect of a Suspected
Counterfeit Cheque (see Rule 4.2.3(c)(i))
or otherwise, and the drawer has not
responded to request(s) to authorise
payment.
Not signed in accordance with

authority held
Where a Cheque is not signed in

accordance with authority held by drawee
Institution.
Last amended
effective 25/7/08
Payment stopped
Where
the
payment.
Last amended
effective 7/9/2000
Payment stopped awaiting

confirmation
Where an unconfirmed telephone request

is made to countermand payment.

S10.16
drawer
countermands
Last amended
effective 31/12/99
[ABN 12 055 136 519]


Confidential
Photocopied Item
Where a photocopy of an Item is

received.
(Photocopied Items are
excluded under Rule 3.5 in Schedule 4
from being included in any exchange.)
Inserted
effective 18/4/05
Note: If a photocopied Item is returned

with this standard answer the return may
not be refused and the photocopied Item
must not be represented through the
APCS.
Post-dated
Where Cheque bears a date in the future.
Refer to drawer
Funds related reasons, eg:
Last amended
effective 25/7/08
Where there are insufficient funds.

Where account closed by drawee
Institution (eg where balance of
account reduced to nil by fees).
Refer to drawer (cont.)
Other legal reasons, eg:
S. 1233 of the Social Security

Act; or
S. 218 of the Income Tax
Assessment Act, etc.
Where signature on Cheque is unknown
by drawee Institution.
Signature unknown
2.2.3.1.2
Company has gone into liquidation

but a receiver has not been
appointed;
Receiver has been appointed; or
Funds are subject to a garnishee
order/notice under:
Last amended
effective 25/7/08
Signature unlike specimen held
Where signature on Cheque is unlike

specimen held by drawee Institution
Last amended
effective 25/7/08
Stale
Where Cheque is over 15 months old.
Last amended
effective 25/7/08
Turned-back Item
(NB: For Cheque Items Only)
Where drawee Institution has become a

Failed Financial Institution within the
meaning of section 70A of the Cheques
Act 1986 of Australia.
Last amended
effective 20/08/04
Last amended
effective 17/6/99
Refer Rule 2.2.11 of this Schedule for grounds for dishonour of Financial Institution
Cheques.
Last amended
effective 17/6/99

S10.17
[ABN 12 055 136 519]


Confidential
2.2.3.1.3
Inserted
effective 1/7/98

Instrument materially altered
Item is void because it has been

materially altered.
For the purposes of this standard answer,
the inclusion of a mutilated or damaged
money order in a Carrier Envelope does
not, by itself, constitute a material
alteration.
Last amended
effective 11/10/06
Payment stopped
Where Australia
payment.
Last amended
effective 7/9/2000
Stale
Where money order is over 12 months

old.
Post
countermands
Turned back Item deleted effective 20/08/04
2.2.3.1.4
Last amended
effective 31/12/99
Warrants
Forged or Counterfeit Instrument
Such instruments are not Warrants and

there is no obligation to honour them.
Item is void because it has been

materially altered.
Warrant in a Carrier Envelope does not,
by itself, constitute a material alteration.
Instrument reported lost or stolen
Where an Institution is informed and is

satisfied that a Warrant was lost or stolen,
the Institution may not honour it if the
Warrant is presented for payment by or
on behalf of a party who has no title to it.
Turned back Item deleted effective 20/08/04
2.2.3.1.5
Deleted effective
20/08/04
Last amended
effective 11/10/06
Deleted effective
20/08/04
Inserted
effective 31/12/99
Travellers Cheques
Standard Answers
Where exhibition of the travellers

cheque is required and the voucher has
not arrived at the drawee Institution by
the required day.
Inserted
effective 31/12/99
Signature unlike specimen
Where signature on travellers cheque is

unlike specimen on cheque.
Inserted
effective 31/12/99
Duplicate Item
Where the drawee Institution

received a duplicate Item.
has
Inserted
effective 31/12/99
Such instruments are not travellers

cheque and there is no obligation to
honour them.
Inserted
effective 31/12/99

S10.18
[ABN 12 055 136 519]


Confidential
2.2.4
An Institution may dishonour a

travellers cheque which has been
materially altered.
For the purposes of this standard
answer, the inclusion of a mutilated or
damaged travellers cheque in a Carrier
Envelope does not, by itself, constitute a
material alteration.
Last amended
effective 11/10/06

satisfied that a travellers cheque was
lost or stolen, the Institution may not
honour it if the travellers cheque is
presented for payment by or on behalf
of a party who has no title to it.
Inserted
effective 31/12/99
Indecipherable or No Teller's Stamp

Where a dishonoured Item bears an indecipherable stamp or no stamp, it is to be returned
through the same source as it was received with relative pro forma debit being directed to that
source.
2.2.5
Reimbursement For Items Dishonoured

(See also Rule 1.3.6: Debit Items Lodged on Credit Transfers and Subsequently Dishonoured)
2.2.6
The debit value of each Item dishonoured is to be cleared to the collecting Institution by means
of a Drawing for Dishonoured Item Returned Direct (as set out in Appendix A2) in terms of Rule
2.2.1.
Last amended
effective 20/10/99
[Rules 2.2.5.1 and 2.2.5.2 intentionally deleted].
Deleted
effective 20/10/99
Late Arrival of (or lost) Dishonoured Items (Collecting Institution)

2.2.6.1
Should a Drawing for Dishonoured Item Returned Direct (other than one raised by
the drawee Institution under Rule 2.2.10.1) be received before the relative dishonour
Item, it is to be retained. Where the transaction cannot be identified from details
appearing on the debit, the debit is to be returned to the drawee Institution with the
answer Relative Item not to hand - unable to identify transaction from information
given.
2.2.6.2
In retaining a debit in terms of Rule 2.2.6.1 above, a collecting Institution shall, in

terms of its internal instructions, act upon the debit for the purpose of notifying and
debiting the party for whom the missing Item was collected.
2.2.6.3
After allowing for reasonable in-transit time, the collecting Institution must then
advise the drawee Institution of non-receipt of a dishonoured Item with the view to
establishing reason for non-receipt. If the dishonoured Item is considered to be lost,
the drawee Institution should make every effort to obtain and supply the collecting
Institution with a duplicate of the lost Item.

S10.19
Last amended
effective 20/10//99
[ABN 12 055 136 519]


Confidential
2.2.7
Items Dishonoured Out of Time

(a) If an Item is dishonoured out of time (in terms of Schedule 10, Rule 2.2.1), the dishonour may be
refused by the collecting Institution, as follows:
Last amended
effective 7/9/2000
A collecting Institution which believes that it has received a dishonour out of time may
notify the drawee Institution by facsimile and ask it to demonstrate that the dishonour was
not effected out of time.
Such notice must be given not later than the end of the business day on which the advice
of dishonour, or the drawing therefor, whichever is earlier, is received and should include
all trace detail of the original Item available from the dishonour or the drawing voucher.
It is open to the collecting Institution to confirm its notice, and to the drawee Institution to
confirm its response, by any independent means it chooses, to verify the timing of such
messages.
The drawee Institution must reply, within a further two business days (unless the parties
agree otherwise), either demonstrating that the Item was not dishonoured out of time in
terms of the provisions of Schedule 10, Rule 2.2.1, or accepting that it was out of time.
If the drawee Institution fails to respond within the required two days, or if it accepts that
the Item was dishonoured out of time, the collecting Institution may refuse the dishonour.
If the collecting Institution does decide to refuse the dishonour, it is to draw for the value
and this drawing must be exchanged within a further one business day.
If there is disagreement between the collecting and drawee Institutions on any aspect of
this procedure, or if it is desired to draw for a refusal later than laid down in this Rule,
then the parties must first attempt to resolve the matter before referring it to the
Note:
It is recommended that to preserve recourse, the drawee Institution and the collecting
Institution advise the drawer and the depositor (respectively) that the dishonoured Item is
subjected to investigation, and that sufficient funds are to remain available to meet the
obligations as determined by the results of that investigation.
(b)
The acceptance of any dishonour that would otherwise be out-of-time, resulting from processing
or technical difficulties experienced by the drawee institution, is wholly at the proprietary
discretion of the collecting Institution, and is on a provisional basis. If such a dishonour is
provisionally accepted and the collecting Institution subsequently:
determines in good faith that it is unable to apply the dishonour; or
suffers (or determines in good faith that it is likely to suffer) loss as a result of such
acceptance,
Inserted
effective 7/9/2000
it may return the dishonour outside of the times specified in Rule 2.2.1, provided that such return
occurs within 90 days after provisional acceptance of the dishonour.

S10.20
[ABN 12 055 136 519]


Confidential
Last amended
effective 1/7/98
*2.2.8
Wrongly Directed Dishonoured Items

Any Drawing for Dishonoured Item Returned Direct (see Appendix A2) or Advice of
Dishonoured Item Returned Direct (see Appendix A3) or electronic dishonour mailing advice
(see Appendix C4) wrongly directed is to be redirected without delay by the receiving Institution
to the collecting Institution in accordance with each Institution's internal instructions. Where
trace details are not sufficient to identify the branch of the collecting Institution concerned, the
Item is to be returned (under telephone advice) to the branch of the drawee Institution.
Last amended
effective 20/10/99
Any electronic dishonour refusal mailing advice (see Appendix C5) wrongly directed is to be
redirected without delay by the receiving Institution to the drawee Institution in accordance with
each Institution's internal instructions. Where information is not sufficient to identify the branch
of the drawee Institution concerned, the Item is to be returned (under telephone advice) to the
branch of the collecting Institution.
*2.2.9
Last amended
effective 1/7/98
Representation of Dishonoured Items

Any previously dishonoured Debit Item which is re-presented, may be re-presented 'for value'
once after original dishonour. Thereafter, these Items are to be presented as bills for collection
only.
2.2.10
Missing Items (Paying Institution)

2.2.10.1.1
Internal Presentment Effected but Item Unavailable for Return
Inserted
effective 3/5/99
Should the paying Institution wish to dishonour such a missing Item, it must, on the
business day on which the reports showing the state of the account are received:
initiate an internal trace enquiry to identify:
Last amended
effective 23/11/99
Last amended
effective 31/12/99
the exchange details; and

any other relevant information which might be of assistance to the
collecting Institution in identifying the account to which the Item was
originally credited; and
Last amended
effective 23/11/99
send to the collecting Institutions dishonour return point an Advice of

Dishonoured Item Returned Direct, and clear to that point a Drawing for
Dishonoured Item Returned Direct, both of which are to contain:
Last amended
effective 31/12/99
at least the details identified in the above-mentioned trace,
Last amended
effective 31/12/99
the relevant answer (for example Refer to Drawer), and

the words Missing Item.
2.2.10.1.2
Item Required for Presentment but Unavailable
Inserted
effective 3/5/99
On the business day on which such an Item would normally have been expected to
be received:
Last amended
effective 23/11/99
initiate an internal trace enquiry to identify:
Last amended
effective 31/12/99
the exchange details, and

S10.21
[ABN 12 055 136 519]


Confidential
any other relevant information which might be of assistance to the
collecting Institution in identifying the account to which the Item was
originally credited; and
Last amended
effective 23/11/99
send to the collecting Institutions dishonour return point an Advice of

Dishonoured Item Returned Direct, and clear to that point a Drawing for
Dishonoured Item Returned Direct, both of which are to contain:
Last amended
effective 31/12/99
at least the details identified in the above-mentioned trace, and
Last amended
effective 31/12/99
the answer Item Not Yet to Hand.
2.2.11
2.2.10.1
[Deleted]
Deleted
effective 3/5/99
*2.2.10.2
When an Item which was dealt with in terms of Rule 2.2.10.1.2 or is returned
electronically with return code 926 is found, or a replacement is received (see
Schedule 10, Rule 2.4) the paying Institution is to:-
Last amended
effective 3/5/99
examine the Item to determine whether it will be paid;
Last amended
effective 3/5/99
if the Item will be paid, forward a Warrant (see Appendix A1), (or other
payment as mutually agreed) for the value to the collecting Institution's
dishonour return point. On the Warrant, record all the same information as
previously shown on the pro-forma debit sent to the collecting Institution.
Last amended
effective 20/10/99
if the Item will not be paid, forward to the collecting Institution's dishonour
return point, on a not-for-value basis, an Advice of Dishonoured Item Returned
Direct clearly marked Not-for-Value together with the unpaid Item bearing
the answer finally determined. On the Advice, quote all the same information
as shown on the Advice of Dishonoured Item Returned Direct and Drawing for
Dishonoured Item Returned Direct previously forwarded to the collecting
Institution.
Last amended
effective 31/12/99
Financial Institution Cheques - Rules for Dishonour of Financial Institution Cheques
Last amended
effective 17/6/99
It is now normal commercial practice for Cheques drawn by Financial Institutions on themselves
to be accepted as a safe and convenient alternative to cash, especially for large transactions. To
ensure the commercial acceptability of all Cheques drawn by Financial Institutions on
themselves, the following rules apply.
For the purposes of the dishonour rules set out in this Schedule 10 and Schedule 11 respectively,
the terms Financial Institution and Financial Institution Cheque have the meanings given to
then in Part 1.1.
Note: It is up to each Institution to establish internal procedures to ensure that the answers set
out in this Rule are used only in appropriate circumstances, in order to minimise its potential
exposure to legal liability associated with the use of an incorrect answer (eg. in defamation)
Inserted
effective 31/12/99
Last amended
effective 18/01/02

Such instruments are not Financial Institution Cheques and may be dishonoured.
Last amended
effective 18/01/02

S10.22
[ABN 12 055 136 519]


Confidential
A Financial Institution may dishonour a Financial Institution Cheque that has been
materially altered. For the purposes of this Rule, the inclusion of a mutilated or damaged
Financial Institution Cheque in a Carrier Envelope does not, by itself, constitute a
Last amended
effective 11/10//06.
Last amended
effective 18/01/02
Where a Financial Institution is informed and is satisfied that a Financial Institution

Cheque has been lost or stolen, the Financial Institution may dishonour it if it is presented
for payment by or on behalf of a party who has no title to it.
Court order restraining payment
A Financial Institution is compelled to observe an order of a court restraining the
Financial Institution from paying a Financial Institution Cheque that may be presented for
payment while the order is in force.
Failure of consideration for the issue of a Financial Institution Cheque
Where there has been failure of consideration for the issue of a Financial Institution
Cheque, the issuing Financial Institution may dishonour the Cheque only if either:
Last amended
effective 25/7/08
the holder has not given value for that Financial Institution Cheque, or
if the holder has given value, the holder had, at the time of giving value, knowledge of the
failure of consideration for the issue of that Financial Institution Cheque.
Turned-back Item
Last amended
effective 18/01/02
Where drawee Institution has become a Failed Financial Institution within the meaning
of section 70A of the Cheques Act 1986 of Australia.
Last amended
effective 20/08/04
Photocopied Item
Inserted
effective 18/4/05
Where a photocopy of an Item is received. (Photocopied Items are excluded under Rule
3.5 in Schedule 4 from being included in any exchange.)
Inserted
effective 18/4/05
Note: If a photocopied Item is returned with this standard answer the return may not be
refused and the photocopied Item must not be represented through the APCS.
The decision to refuse payment of a Financial Institution Cheque under these circumstances is to
be made at a responsible level and with due regard for the necessity to maintain the integrity of
such instruments.
Financial Institutions should co-operate with any holder or prospective holder who may want to
verify the authenticity and content of any Financial Institution Cheque purporting to have been
issued by them.
[Original Rule 2.2.12 and related sub-clauses amended and renumbered as Rule *4.4 and
related sub-clauses.]
2.2.12
Last amended
effective 31/12/99
Last amended
effective 22/01/09

In the event of a dishonour of a Cheque, a Participating Member may use the Customer Notice of
Inward Dishonour form set out in Appendix C13 to notify a customer of the dishonour of a
Cheque deposited into an account.

S10.23
[ABN 12 055 136 519]


Confidential
2.2.13
2.3
2.3.1
Note: Please refer to the Rules set out below for the following:
Suspected Counterfeit Cheques: Rule 4.2;
Dishonour of lost, stolen, forged or counterfeit cheques: Rule 4.3;
Dishonoured Debit Items potential fraud: Rule 4.4;
Monitoring of dishonours: Rule 4.5.
Re-numbered
effective 15/01/07
RUBBER OR METAL STAMPS ON DEBIT ITEMS

Cheques and other Debit Items must bear a stamp which shows:
Last amended
effective 30/10/02
The Institution to which the Item, if dishonoured, is to be returned (either branch or

processing centre address).
BSB Number on which reimbursement for dishonour must be drawn.
2.3.2
The BSB Number must appear twice on all stamps placed on Debit Items. If the address portion
of the stamp is illegible, the dishonouring point will return the Item to the point indicated by the
BSB Number.
2.3.3
Where arrangements are made for customers to stamp paper before lodgement of credits, such
stamps must comprise a crossing, and, in addition and separately, a stamp which complies with
Rules 2.3.1 and 2.3.2.
2.3.4
Stamps must be legible and impressed in such a manner that no vital portion of the Item is
obscured, especially the amount in figures.
Last amended
effective 1/7/98
Last amended
effective 3/5/99
2.4
2.4.1
DEBIT ITEMS LOST BETWEEN COLLECTING & PAYING INSTITUTIONS

[Deleted]
Deleted
effective 3/5/99
[Deleted.]
Deleted
effective 3/5/99
Debit Items Lost in Transit To (and Prior to Receipt by) Paying Institution
2.4.1.1
When the collecting Institution (or its Clearing Representative) becomes aware of
the loss of a Debit Item, such Institution is to immediately give notice to its
customer that the Debit Item is not cleared in order that recourse may not be lost.
Last amended
effective 23/11/99
2.4.1.2
The collecting Institution must search its records to ascertain whether the Item
referred to in Rule 2.4.1.1 is held by it not-for-value.
Last amended
effective 23/11/99
2.4.1.3
If the Item referred to in Rule 2.4.1.1 is not found within 24 hours after the
collecting Institution became aware of its loss, the collecting Institution may request
presentment based on an imaged copy of the Item as set out in Rule 1.17 in Schedule
11 or request the paying Institution to approach its customer for a replacement Debit
Item as follows:
Last Amended
effective 19/09/03
(a)
The collecting Institution must, to the extent that it is legally able to do so,
complete the facsimile request form set out in Appendix L1 and send it to the
paying Institution Replacement Cheque Contact Point listed in Appendix D8.
Last amended
effective 30/10/02
(b) The paying Institution must acknowledge receipt of the facsimile request (in
the panel provided) and send the standard letter set out in Appendix L2 to its
customer requesting issue of a replacement Item.
Last amended
effective 23/11/99

S10.24
[ABN 12 055 136 519]


Confidential
If the paying Institution receives a request from its customer for an indemnity
by the collecting Institution in connection with drawing a replacement Item to
the same tenor as the original Item and (if applicable) for adequate security to
be provided, the paying Institution must immediately notify the collecting
Institution by facsimile advice.
Inserted
effective 23/11/99
(d) The collecting Institution must immediately notify the paying Institution of the
date on which any indemnity is given and the date on which any security is
provided.
Inserted
effective 23/11/99
(c)
(e)
Note: The Cheques Act 1986 allows the drawer to request from the former
holder (here, the collecting Institution) an indemnity, and security for that
indemnity, in connection with providing a replacement Cheque. Whether the
collecting Institution wishes to do so is a proprietary decision.
Last amended
effective 25/7/08
If a replacement Item is received by the paying Institution within one month

after the date of the letter referred to in paragraph (b) above, the paying
Institution must then send a Warrant (or other payment mutually agreed) or a
not-for-value Advice of Dishonoured Item Returned Direct, as appropriate, to
the collecting Institution as set out in Rule 2.2.10.2.
Last amended
effective 31/12/99
Deleted
effective 23/11/99
[Deleted.]
If the replacement Item is not received within one month after the date of the
letter referred to in paragraph (b) above, the paying Institution must then
immediately inform the collecting Institution by facsimile advice.
Last amended
effective 23/11/99
Note: Section 115 Cheques Act 1986 sets out the period within which a
drawer must provide a replacement Cheque. That period is lengthened if the
drawer has requested an indemnity.
Last amended
effective 25/7/08
Changes to contact details in Appendix D8 must be promptly notified to the

Company in accordance with requirements set out in the Preamble to Schedule 11 of
these Procedures.
Inserted
effective 24/1/05
(f)
2.4.1.4
2.4.2
For-Value Debit Items Lost After Receipt by (and Prior to Presentment by) Paying
Institution
Last amended
effective 3/5/99
Immediately after the paying Institution becomes aware of the loss of a Debit Item received from
the collecting Institution, the following procedure applies:
Last Amended
effective 19/09/03
2.4.2.1
Paying Institution to advise collecting Institution of amount of Debit Item, date and
on which exchange the Debit Item was received and other appropriate trace
information.
Last amended
effective 3/5/99
2.4.2.2
Collecting Institution to immediately give notice to its customer that the Debit Item
is not cleared in order that recourse may not be lost.
2.4.2.3
The paying Institution must search its records to ascertain whether the Item is held
by it not-for-value and if located, follow the process as set out in rule 2.2.10.2.
Last Amended
effective 19/09/03
2.4.2.4
If the Item is not found within 24 hours after the paying Institution became aware of
its loss, the paying Institution is to advise the collecting Institution and ascertain if
presentment will now be requested based on an imaged copy of the Item, as set out
under Rule 1.17 in Schedule 11 and if not, the paying Institution must request a
replacement Item from its customer as follows:
Last amended
effective 19/09/03

S10.25
[ABN 12 055 136 519]


Confidential
The paying Institution must immediately send the standard letter set out in
Appendix L2 to its customer requesting issue of a replacement Item.
Inserted
effective 23/11/99
Note: The Cheques Act 1986 allows the drawer to request from the former
holder (here, the paying Institution) an indemnity, and security for that
indemnity, in connection with providing a replacement Cheque. Whether the
paying Institution wishes to also offer such an indemnity or security, by adding
appropriate words in the standard letter, is a proprietary decision.
Last amended
effective 25/7/08
(b)
If a replacement Item is received by the paying Institution within one month

after the date of the letter referred to in paragraph (a) above, the paying
Institution must then send a Warrant (or other payment as mutually agreed) or
a not-for-value Advice of Dishonoured Item Returned Direct, as appropriate, to
the collecting Institution as set out in Rule 2.2.10.2.
Last amended
effective 25/7/08
(c)
If the replacement Item is not received within one month after the date of the
letter referred to in paragraph (a) above, the paying Institution must then
immediately inform the collecting Institution by facsimile advice.
Inserted
effective 23/11/99
Note: Section 115 Cheques Act 1986 sets out the period within which a
drawer must provide a replacement Cheque. That period is lengthened if the
drawer has requested an indemnity.
Last amended
effective 25/7/08
(a)
Deleted
effective 3/5/99
[Deleted]
2.4.3
Disputes Arising From Rules 2.4.1 and 2.4.2

2.4.3.1
Should a dispute arise as to whether, in fact, the lost Item had entered the paying
Institution's system, then the Institutions involved shall co-operate with a view to
giving effect to Rules 2.4.1 and 2.4.2 above.
2.4.3.2
In the case where a loss has to be met due to the inability of the paying Institution to
obtain full reimbursement from the drawer of the Debit Item and/or the inability of
the branch of the collecting Institution to obtain recourse against its customer:
the matter is to be referred by each Institution to its Administration for
determination as to where the loss or how the apportionment thereof will fall,
having regard to the merits of the case; and
if the matter remains unresolved, subject to the provisions of Part 13 of the
Regulations, either Institution may refer it to the Management Committee for
determination.
Note:
For Cheques drawn by the Commonwealth Government, refer to Rule 2.5.
2.4.3.3
The foregoing provisions are subject to the understanding that while a determination
by the Management Committee in accordance with Part 13 of the Regulations is
binding on the Institutions which are parties to the dispute which is the subject of
any such determination, no Institution forgoes its legal rights to commence
proceedings in a court of law or equity or otherwise (and, in the case of a dispute the
subject of Part 13 of the Regulations, in accordance with that Part 13), neither does it
commit itself to refund the amount of any lost Debit Item and that each case is to be
considered on its merits according to the circumstances.

S10.26
Last amended
effective 25/7/08
[ABN 12 055 136 519]


Confidential
2.5
2.5.1
LOST COMMONWEALTH GOVERNMENT CHEQUES

If Cheque can be identified
Last amended
effective 25/7/08
2.5.1.1
If sufficient information is available to enable the issuing Department to identify the

lost Cheque, and to stop payment thereof, the collecting Institution, through its
Administration, may request the Reserve Bank branch upon which the Cheque was
drawn to approach the issuing Department for the issue of a replacement Cheque.
Last amended
effective 25/7/08
2.5.1.2
Ideally the collecting Institution should supply the following information:

Amount of Cheque
Name of the payee (and address if known)
Issue date of Cheque
Full (9 digit) Cheque serial number
Number of account upon which Cheque was drawn
Type of benefit, pension, allowance or payment
Issuing Department reference number
Office of issue when Cheque is drawn by the Australian Taxation Office.
2.5.1.3
2.5.2
If the collecting Institution can only supply some of the above information, it is
possible that the issuing Department might still be able to identify the lost Cheque.
Last amended
effective 25/7/08
Last amended
effective 25/7/08
If Cheque cannot be identified
Last amended
effective 25/7/08
2.5.2.1
Last amended
effective 25/7/08
If a Cheque is lost within the payments clearing system and sufficient information
cannot be provided to enable the issuing Department to identify the lost Cheque, the
Institution involved in the loss may, under special arrangements agreed to by the
Commonwealth Government, lodge an application for reimbursement direct with the
issuing Department after a period of 15 months from date of the loss provided that:
the Institution concerned can be certain of the name of the issuing Department;
and
the issuing Department can then establish that for each unidentified lost
Cheque, a Cheque for that amount, which in all the circumstances could have
been the lost Cheque, was issued before the date of the loss and remains
unpresented.
Last amended
effective 25/7/08
Claims for reimbursement are to be supported by a Statutory Declaration and

Undertaking (see Rule 2.5.3) completed by a senior officer of the Institution's
Administration. If the claim is on the Australian Taxation Office send the Statutory
Declaration and Indemnity to:
Australian Taxation Office
(ATO Accountant)
2 Constitution Avenue
Canberra ACT 2600

S10.27
[ABN 12 055 136 519]


Confidential
2.5.3
Commonwealth of Australia
STATUTORY DECLARATION
[1]
I .,
of ,
in the .
of
DO SOLEMNLY AND SINCERELY DECLARE:
[2]
(a)
that the records of the

...Branch of
[Institution] ACN/ARBN/ABN .
show that cheque(s) (each) drawn by the . of the
Commonwealth of Australia for the total amount of . dollars
. cents were / was lodged with the Branch of
said
..
[Institution]
.
on
the
day of .., 19 for collection; and
(b)
that before collection by the Branch could be effected the cheque(s) were/was lost
and . [Institution] . Has thereby suffered a
loss of . dollars cents representing the face value of
the cheque(s);
AND I make this solemn declaration by virtue of the Statutory Declarations Act
1959, and subject to the penalties provided by that Act for the making of false
statements in statutory declarations, conscientiously believing the statements
contained in this declaration to be true in every particular.
DECLARED AT . ) in
the [State / Territory] of ..) on the

. day of 19 .
[3] ..
Name and Title of Signatory
BEFORE ME, .. [4] . [Witness])
[5] .)
[1]
Here insert name, address and occupation of person making the declaration, who
must be a senior, responsible official of the Institution concerned.
[2]
Here amend appropriately: All amendments to be initialled by both the official

and the witness in the margin opposite each amendment.
Include the Institution's ACN, ARBN or ABN.
[3 ]
[4 ]
Signature of person making the declaration.

Signature of person before whom the declaration is made, who must be a
Magistrate, Justice of the Peace, Commissioner for Affidavits or Declarations,
Notary Public, or a person before whom a statutory declaration may be made
under the law of the State/Territory in which the declaration is made.
[5]
Here insert title of person before whom the declaration is made.

S10.28
[ABN 12 055 136 519]


Confidential
UNDERTAKING
TO: The Commonwealth of Australia:
IN CONSIDERATION OF the ..............[Name of Gov't Dept]...... of the
Commonwealth of Australia making a voluntary payment to ......................
[Institution] ............... in respect of the ................... cheque(s) declared in the
within Statutory Declaration to have been lost, ........ [Institution]
..............................ACN/ARBN/ABN.......................... .
HEREBY UNCONDITIONALLY UNDERTAKES to pay to the Commonwealth of
Australia, forthwith upon demand upon ........................ [Institution] ....................

being made by the Commonwealth for the payment, the amount of the voluntary
payment made by the Commonwealth, or so much thereof as is demanded by the
Commonwealth.
IN WITNESS WHEREOF this undertaking was made and given by the Institution
on the .............. day of ......................... 19........ .
SIGNED on behalf of the ......................................)
BY THE HAND OF ...............................................)
of the .....................................................................)
Branch of the Institution)
.....................................
Name and Title of Signatory
WHO CERTIFIES that he is duly authorised in that behalf
IN THE PRESENCE OF
.....................................................................................
Witness

S10.29
[ABN 12 055 136 519]


Confidential
2.6
UNDOMICILED DEBIT ITEMS RECEIVED THROUGH THE EXCHANGES
Deleted
effective 11/9/06
[Rule 2.6 deleted]

3.
MISCELLANEOUS
3.1
WARRANTS
Deleted
effective 11/9/06
Last amended
effective 4/12/95
A Warrant is a debit-based drawing voucher, as set out in Appendix A1, having a face value of
$500,000 or less issued by an Institution for the purpose of effecting a value transfer to another
Institution by drawing back on the issuing Institution through the clearing system.
Last amended
effective 1/10/01
Warrants are issued by Institutions that are capable of providing finality of payment and are not
transferable. The Warrant should not be permitted to come into the hands of any outside party,
except as a closed mail item sent via postal or courier services.
A Warrant is used where a guaranteed medium of payment is required and is regarded as being
irrevocable in all circumstances except where fraud, relative to the Warrant, is involved.
*3.2
A Warrant is irrevocable and is deemed by the industry to represent clear funds and that if an
Institution decides to issue against unclear funds it does so at its own risk.
Inserted
effective 3/6/96
The BSB Number of the drawee Institution must be pre-encoded on the Warrant by the issuing
Institution prior to its issue.
Inserted
effective 1/3/95
OVERSEAS ISSUED ON-DEMAND AUSTRALIAN DOLLAR DENOMINATED (AUD)

DRAFTS
Inserted
effective 31/12/99
A drawee Institution should not pay, but, at its discretion, may elect to pay, an overseas issued
on-demand Australian dollar denominated (AUD) draft, if it has not received an MT 110 Advice
of Cheque(s) (as contained in the SWIFT User Handbook), or some other form of advice with
similar information content, confirming the details of that overseas issued on-demand AUD
draft.
Inserted
effective 31/12/99
3.3
[Deleted]
3.4
[Deleted]
3.5
MISSORTS SUBSEQUENTLY LOST

When an Institution, to which a Debit or Credit Item has been missorted for value, becomes
aware that the Item has been lost, whether before or after entry to its system, it shall return the
value to the originating Institution shown on the relative exchange listing, using the appropriate
Error Adjustment Voucher (see Appendices A8 and A9).
Last amended
effective 22/01/09
This must be done on the day of receipt or within three (3) business days of the exchange on
which value passed (see also Rule 1.3.5, 2.4). Where the error is not found on the day of receipt
or within three (3) business days after the exchange, or the related error adjustment voucher
cannot be included in a listing for any such business days, the Institutions involved must resolve
the matter by correspondence between themselves.

S10.30
[ABN 12 055 136 519]


Confidential
3.6
TELEGRAPHIC TRANSFERS BETWEEN INSTITUTIONS
3.6.1
Where a telegraphic transfer is lodged at one Institution for transmission to another Institution at
another point, the Institution accepting the funds will, where it is represented at the other point,
effect telegraphic remittance to its own branch which will then pass on the funds as expeditiously
as possible to the transferee Institution.
3.6.2
If the Institution accepting the funds for telegraphic transmission to another Institution at another
point is not represented at the latter point, the funds will be passed on to the transferee Institution
at place of lodgement. (If the transferee Institution is not represented at the place of lodgement,
the transaction will be handled in terms of the Institution's internal instructions.)
Where telegraphic transfers lodged at one Institution are subsequently passed on to another
Institution for transmission, the Institution transmitting the funds will be recouped for the cost of
the message and also for any fee it may impose for the service.
3.6.3
Agreed local times for acceptance at Institutions' Capital City Office in each State/Territory, of
other bank Warrants covering telegraphic transfers from overseas or within Australia are:
Last amended
effective 22/5/95
Monday to Thursday
not later than 4.30 pm
Friday
not later than 5.00 pm
or
30 minutes before the last exchange, whichever is earlier.
3.6.4
A telegraphic transfer may be deemed by the recipient Institution to represent clear funds.
Should an initiating Institution choose to issue a telegraphic transfer against unclear funds, then
it does so at its own risk.
4.
FRAUD DETECTION AND PREVENTION
*4.1
INTRODUCTION
Inserted
effective 30/9/99
The procedures in this Rule 4 are intended to counter various types of fraud in relation to
Cheques and other Debit Items. Responsibility for dealing with fraud ultimately rests with
individual Participating Members. However, in order to minimise the incidence of fraud, it is in
all Participating Members interest to co-operate with each other as fully as possible. It is on this
basis that Participating Members are expected to assist each other as far as they are legally able
to, in relation to fraud detection and prevention.
Last amended
effective 25/7/08
*4.2
SUSPECTED COUNTERFEIT CHEQUE
Last amended
effective 19/07/04
4.2.1
Definitions/Application
In this Rule 4.2,
Last amended
effective 31/12/99
(a)
Advice of Suspected Counterfeit Cheque has the meaning given to that term in Part
1.1;
Inserted
effective 31/12/99
(b)
Suspected Counterfeit Cheque means a cheque whose MICR code-line completely

fails to be read (that is, the code-line is present but:
Inserted
effective 31/12/99
is not printed with MICR toner; and/or

does not register; and/or
cannot be read by the proof/capture equipment).

S10.31
[ABN 12 055 136 519]


Confidential
[Note:
Photocopies of Cheques are unacceptable Items pursuant to Rule 3.5 in Schedule 4 and must not
be included in any exchange.]
Last amended
effective 25/7/08
The collecting Institution is to use its best endeavours to put in place internal procedures to
detect Suspected Counterfeit Cheques. For this particular type of fraud, it is during the
collecting Institutions proofing/capture operations that initial detection is most likely and
appropriate steps may be able to be initiated at an early stage to thwart any planned fraud. Once
a Suspected Counterfeit Cheque is detected, the provisions of this Rule 4.2 then apply.
Last amended
effective 7/9/2000
[Note:
While factors other than those specified in the definition of Suspected Counterfeit Cheque
(such as paper quality and design) may alert an astute operator to a possible fraud, such
instances of detection are considered remote. However, the procedures in this Rule 4.2 may be
used in these circumstances if the collecting Institution so elects.]
The procedures in this Rule 4.2 are not to be considered as a quasi request for a special answer
and must not be used for that purpose.
Deleted effective
19/07/04
[Note Deleted effective 19/07/04]

4.2.2
Collecting Institutions Procedures

If a Suspected Counterfeit Cheque drawn on another Institution for any amount is detected
during proofing/capture at the collecting Institution, the collecting Institution must implement
the following action:
(a)
immediately alert the relevant supervisor or team leader;
[paragraphs (b), (c) and (g) - Deleted effective 19/07/04 and subsequent paragraphs renumbered]
Deleted effective
19/07/04
(b)
complete an Advice of Suspected Counterfeit Cheque (as set out in Appendix C7 or an

electronic version of this appendix saved as a rich text format attachment), and include a
copy or image of the Suspected Counterfeit Cheque in the space provided;
Last amended
effective 19/07/04
(c)
send the completed Advice of Suspected Counterfeit Cheque by facsimile or by e-mail (as
a rich text format attachment) to the drawee Institutions Suspected Counterfeit Cheques
contact point (as set out in Appendix D7) no later than the day on which the Suspected
Counterfeit Cheque is processed;
Last amended
effective 19/07/04
(d)
take the following steps to protect the original Suspected Counterfeit Cheque from
damage or loss while it is in the collecting Institutions possession:
Last amended
effective 19/07/04
keep the handling of the Suspected Counterfeit Cheque to a minimum, and ensure
that it is handled only by its edges; and
place the Suspected Counterfeit Cheque, by itself, in a Carrier Envelope so as not to
cause damage to the Suspected Counterfeit Cheque through its chemical makeup or
by over-encoding.
(e)
manually input the codeline data from the Cheque in terms of Rule 1.9 in Schedule 11 and
ensure it is included in the not-for-value exchange of Cheques that day. If the Item fails
the drawee Institutions check digit validation rules in terms of Rule 1.10 in Schedule 11
it is to be included in the for-value exchanges that day;

S10.32
Last amended
effective 11/10/06
Inserted effective
19/07/04
[ABN 12 055 136 519]


Confidential
(f)
where the Suspected Counterfeit Cheque is purported to be drawn on one Institution but
its MICR code-line is found to contain the BSB Number of another Institution, send the
Advice of Suspected Counterfeit Cheque by facsimile to both Institutions Suspected
Counterfeit Cheques contact points as per paragraph (c) of this Rule 4.2.2;
(g)
if a credit transfer is involved (that is, the Suspected Counterfeit Cheque has been lodged
for transfer into an account domiciled at an Institution other than the collecting
Institution), send an appropriate advice to that other Institution in order to alert them to
the position.
(h)
where a collecting Institution does not receive a response to an Advice of Suspected

Counterfeit Cheque by the time specified in Rule 4.2.3 (b), they must follow up once by
telephone to the drawee Institutions designated Suspected Counterfeit Cheque contact (as
set out in Appendix D7).
Last amended
effective 19/07/04
Inserted effective
19/07/04
[Note: Whether the collecting Institution places a funds hold on the account to which the
Suspected Counterfeit Cheque was deposited is a proprietary decision.]
(i)
4.2.3
changes to contact details in Appendix D7 must be promptly notified to the Company in

accordance with requirements set out in the Preamble to Schedule 11 of these Procedures.
Inserted effective
24/1/05
Drawee Institutions Procedures

Once the drawee Institution is alerted by the collecting Institution under Rule 4.2.2 to a
Suspected Counterfeit Cheque, the drawee Institution must implement the following action:
(a)
immediately verify the Suspected Counterfeit Cheque when received by the drawee
Institution;
Deleted effective
19/07/04
[Note - Deleted effective 19/07/04]

(b)
respond to the collecting Institution by 12 noon the next business day following receipt of
the Advice of Suspected Counterfeit Cheque as to whether the Suspected Counterfeit
Cheque is in order or not, by completing and sending to the collecting Institution by
facsimile the reply section of the Advice of Suspected Counterfeit Cheque, which
provides for the following responses:
Last amended
effective 19/07/04
Last amended
effective 27/4/2000
In Order/Genuine
or will be dishonoured with the answer
(c)
(d)
where fraud/counterfeit is confirmed or otherwise suspected but not yet confirmed, inform
the collecting Institution with either of the following answers (as appropriate):
(i)
Not authorised (where fraud/counterfeit is suspected but not yet confirmed); or
(ii)
Forged or counterfeit instrument (where fraud/counterfeit is confirmed);
the drawee Institution should ensure that the Suspected Counterfeit Cheque is
preserved in the Carrier Envelope; and
S10.33
Last amended
effective 31/12/99
Last amended
effective 19/07/04
where fraud is confirmed by the drawee Institution:
Last amended
effective 19/07/04
Last amended
effective 11/10/06
[ABN 12 055 136 519]


Confidential
the risk management/ investigations areas of both the collecting Institution and the
drawee Institution should liaise with each other if necessary;
(e)
*4.3
where the Item is deemed not to be fraudulent, the MICR evaluation/control area of the
drawee Institution should be advised to investigate the quality of MICR encoding.
Last amended
effective 19/07/04
Inserted
effective 7/9/2000
Lost, Stolen, Forged or Counterfeit Cheques

If a Ledger Financial Institution becomes aware that a Debit Item presented for payment:
has previously been reported lost or stolen;
was forged; or
is a counterfeit,
beyond the time limit for the dishonour of the Item, as set out in Rule 2.2.1 of Schedule 10, or
Rules 2.7 to 2.9 of Schedule 11 (as appropriate), then:
(a)
the Ledger Financial Institution may notify the collecting Institution of the situation.
Where the Ledger Financial Institution does so, it must also confirm its notification by
telephone and in writing to the collecting Institutions specified contact point in Appendix
D16. For the purposes of this paragraph, notification by facsimile or by means of
electronic communication is deemed to be notification in writing;
Last amended
effective 22/11/04
(b)
the Ledger Financial Institution may, either in conjunction with or following the action
referred to in Rule 4.3(a), make a written request to the collecting Institution to assist the
Ledger Financial Institution in investigating the matter, and in recovering any amount
paid in respect of the Debit Item;
Last amended
effective 22/11/04
(c)
it is a proprietary matter for the collecting Institution to determine:
Last amended
effective 22/11/04
Whether to provide assistance to the Ledger Financial Institution; and

If it does so, the form(s) of assistance it will provide to the Ledger Financial
Institution.
However, collecting Institutions are encouraged to provide such assistance, as they are legally
able, to the Ledger Financial Institution.
Note: Without limiting the effect of Rule 4.3(c), whether the collecting Institution places
a funds hold on the account to which the relevant Debit Item was deposited is a
proprietary decision.
(d)
Last amended
effective 22/11/04
Last amended
effective 22/11/04
Where:
a Ledger Financial Institution has made a request of the kind referred to in Rule
4.3(b); and
the collecting Institution has, in the exercise of its proprietary discretion, determined
to provide assistance (of whatever nature) to the Ledger Financial Institution in
response to that request,
then, subject to Rule 4.3(e), the Ledger Financial Institution must indemnify and keep
indemnified the collecting Institution in respect of any claim, liability, expense or loss
suffered or incurred by the collecting Institution as a result of providing such assistance.

S10.34
[ABN 12 055 136 519]


Confidential
(e)
The indemnity contained in Rule 4.3(d) above is not available to the collecting Institution
if, when providing assistance to the Ledger Financial Institution:
(f)
*4.4
Last amended
effective 22/11/04
the collecting Institution took steps it was aware it was not legally able to take; and
those steps resulted in the relevant claim, liability, expense or loss to the collecting
Institution.
Each Participating Member must nominate, in writing, to the Company a contact point
(within its fraud department or other appropriate department) for the purposes of this Rule
4.3. Participating Members must promptly notify changes in these details to the Company
in accordance with requirements set out in the Preamble to Schedule 11 of these
Procedures.
Last amended
effective 24/1/05
Inserted
effective 31/12/99
Dishonoured Debit Items - Potential Fraud

The following procedure is not mandatory but can be used to alert senior staff of potential fraud
and to enable appropriate action to be taken.
4.4.1
Should an Institution dishonour a Debit Item where there appear to be suspicious

circumstances or where it is thought that the Debit Item is stolen or forged or in any
other way fraudulently issued then it is considered prudent for the paying Institution
to telephone the collecting Institutions Suspected Counterfeit Cheques contact point
(see Appendix D7) and provide the following details prior to processing the Debit
Item:
Name and status of the officer providing the information (to be recorded by
collecting Institution);
Answer on Debit Item;
Reasons why Debit Item appears to be worthy of special treatment; and
Details of Debit Item: drawee, branch, stamp, payee, amount, date, drawer,
date of negotiation.
4.4.2
The collecting Institutions Suspected Counterfeit Cheques contact point should:

Record the name and status of the officer of the paying Institution providing
the information; and
Record details of information provided by the paying Institution.
4.4.3
The collecting Institution should then determine whether the Debit Item was
deposited to an account with itself or an account with another Institution and:
If the Debit Item was deposited to an account with itself, refer matter to a
responsible senior officer for appropriate action.
If the Debit Item was deposited to an account at another Institution, relay the
information received to that Institutions Suspected Counterfeit Cheques
contact point for appropriate action.

S10.35
[ABN 12 055 136 519]


Confidential
*4.5
Inserted
effective 7/9/2000
Monitoring of Dishonours
The following procedure is not mandatory, but can be used by Participating Members to facilitate
early detection of fraud.
Participating Members are encouraged to put in place internal procedures to monitor transactions
made to and from their customers accounts, especially in relation to inward and outward
dishonours, for the purpose of detecting potential fraud (including any kiteflying practice. This
is the deliberate simultaneous lodgment, at two or more Institutions, of drawings against
uncleared funds in accounts in each other Institution(s), with a view to obtaining an unauthorised
advance).
Participating Members are encouraged to:
*4.6
(a)
take early steps (to the extent legally permissible) to prevent the progress of any attempt to
embark in kiteflying; and
(b)
warn any other Institution(s) known to be affected by any such attempt.

Inserted
effective 7/9/2000
Precautions Regarding Provision of Special Answers

The following procedure is not mandatory, but can be used by Participating Members to prevent
the use of special clearances as avenues for fraud.
Two known techniques that have been used by fraudsters concerning special clearances involve:
the lodgment of an Item drawn on a nearby Institution, for personal presentment under
Rule 2.1.4.3 of Schedule 10 (or a special answer by Direct Remittance under Rule 2.1.4.2
of Schedule 10) and withdrawing the proceeds paid in respect of the Item before the Item
itself reaches the paying Institutions proof machines, where defects in the MICR
codeline may be detected;
the detection (by experiment or otherwise) of a paying Institutions threshold amount (if
any), below which the Institution provides a special answer without examining an Item
for authenticity or technical regularity.
Accordingly, Participating Members are encouraged to:
(a)
put in place internal procedures to review the operation of Rule 2.1.4 of Schedule 10 on a
continual basis, to minimise the use of the procedures contained in that Rule as avenues for
fraud; and
(b)
establish a threshold amount, whereby Items exceeding that threshold for which special
answers are sought, are referred to the relevant customers for confirmation of the details of
the Items.
*5.
THIRD PARTY CHEQUE CONVERSION REQUEST FOR INVESTIGATION OR

CLAIM
5.1
Application
This Rule 5 is not mandatory. It is intended to provide general guidance to Participating
Members when dealing with queries or claims about Cheques asserting that the intended payee of
a Cheque has not received payment of the Cheque.

S10.36
Amended
effective 18/4/05
Inserted
effective 5/7/01
[ABN 12 055 136 519]


Confidential
5.2
General Guidelines
(a)
A Participating Member may, when dealing with a query about a Cheque asserting that the
intended payee of the Cheque has not received payment of the Cheque, request
investigation by other relevant Participating Members. Appendix C8 (Third Party Cheque
Conversion Request for Investigation/Claim*), or an electronic version of this appendix,
contains a suggested form, to be amended where necessary, for this purpose. (Note: Where
an electronic version of Appendix C8 is used, this must be saved as a rich text format
attachment). Each Participating Members Third Party Cheque Conversion Investigation
contact facsimile numbers or e-mail addresses for the purposes of this Rule 5.2(a) are set
out in Appendix D9. Participating Members must promptly notify changes in these
facsimile numbers or e-mail addresses to the Company in accordance with requirements set
out in the Preamble to Schedule 11 of these Procedures
Amended
effective 18/4/05
Amended
effective 18/4/05
(b) Where:
(i)
a Participating Member receives a query from another Participating Member

(whether in the form of Appendix C8, or otherwise), asserting that the intended
payee of a Cheque has not received payment of the Cheque; and
(ii)
the first mentioned Participating Member decides to investigate the query,

the following is a list of the types of information in relation to the Cheque that the
first mentioned Participating Member may require to investigate the matter or to
assess where liability lies:
a copy of the Cheque (front and back);
a copy of the Carrier Envelope if used (front and back);
the drawers name;
the payees name;
the amount of the Cheque (in words and in figures);
the Cheque number;
the date on which the Cheque was drawn;
the name of the drawee Institution (and the branch at which the Cheque was
domiciled);
the date on which the Cheque was deposited for collection;
the name of the collecting Institution (and the branch at which the Cheque was
deposited for collection);
the date on which the Cheque was paid;
details of relevant circumstances, for example:
-
Inserted (second bullet

point) effective 11/10/06
how the Cheque was lost (if applicable);

from whom the Cheque was stolen (if applicable);
was fraud involved?
did the drawer act under a mistake?
had the Cheque been crossed?
had the Cheque been endorsed or otherwise negotiated?
The above list is provided for guidance only, and is not intended to be exhaustive.
In certain circumstances, not all the above information will be necessary to
investigate the matter or to assess liability. In other circumstances, other
information may be required.

S10.37
[ABN 12 055 136 519]


Confidential
It is a proprietary matter for each Participating Member to determine what
information it will seek in a particular circumstance, and from whom it will seek
such information.
Participating Members are encouraged to cooperate with each other (to the extent
legally permissible) in exchanging information, and investigating assertions that an
intended payee has not received payment of a Cheque, when requested to do so.
(c)
When a trace request performed in accordance with Rule 3.10 in Schedule 4 or

investigation of a query in Rule 5.2(a) has determined that a conversion has occurred, the
Participating Member may make a claim for refund against the collecting Participating
Member.
Appendix C8 (Third Party Cheque Conversion - Request for
Investigation/Claim*), or an electronic version of this appendix, contains a suggested form,
to be amended where necessary, for this purpose. (Note: Where an electronic version of
Appendix C8 is used, this must be saved as a rich text format attachment.)
Inserted
effective 18/4/05
Each Participating Member's Third Party Cheque Conversion Claim contact facsimile
numbers or e-mail addresses for the purposes of this Rule 5.2(c) are set out in Appendix
D17. Participating Members must promptly notify changes in these facsimile numbers or
e-mail addresses to the Company in accordance with requirements set out in the Preamble
to Schedule 11 of these Procedures.
*6.
6.1
USE OF CARRIER ENVELOPES FOR MUTILATED OR DAMAGED ITEMS
Inserted
effective 11/10/06
Inserted
effective 11/10/06
Application
Rule 6 is intended to assist Participating Members when dealing with a mutilated or damaged Item
that is likely to cause malfunction of processing equipment.
Where an Item is mutilated or damaged to the extent that it is likely to cause malfunction of
processing equipment, the Item must be placed in a Carrier Envelope.
Further, where the Participating Member has no reason to believe that the Carrier Envelope
containing the mutilated or damaged Item is likely to cause malfunction of processing equipment,
it is mandatory that the mutilated or damaged Item placed in a Carrier Envelope be processed via
Electronic Presentment, and not as a for-value Item.
6.2
Inserted
effective 11/10/06
General Rules
(a)
A Participating Member, when encoding a Carrier Envelope that contains a mutilated or

damaged Item, must comply with the requiremenrs of Rule 3.8 (e) in Schedule 4.
(b)
All Carrier Envelopes used by Participating Members must comply with the specifications
set out in Appendix Q.

Schedule 11 (except for the Preamble) is Confidential

S10.38
[ABN 12 055 136 519]


Schedule 11 - Procedures for Electronic Presentment and Electronic Dishonours
Confidential except for Preamble
Last amended
effective 1/7/98
Schedule 11
PROCEDURES FOR ELECTRONIC PRESENTMENT
AND ELECTRONIC DISHONOURS
PREAMBLE
Application
The procedures in this Schedule 11 are intended to apply for all Participating Members and must be read
with the related technical requirements and specifications set out in Appendices E, F and K as well as
Appendices C3, C4, C5, C6, C9, C10, D, G, J, N, O, P, Q, R and S of these Procedures.
Last amended effective

9/12/2009
It is intended that Participating Members will initially use this Schedule and related Appendices as a guide
only, while systems to give effect to them are tested and implemented. During testing, the exchange of
paper Items will continue to represent the exchange of value.
The Management Committee will determine and publish dates for the phased implementation of electronic
presentment and dishonours to take effect.
On each of those dates, electronic exchanges between Participating Members will, to the extent specified
by the Management Committee, become regulated by this Schedule 11 and its related Appendices, in a
manner binding on Participating Members.
Electronic exchanges so regulated will represent the exchange of value.
Inserted
effective 25/5/99
General Effect
Schedule 11 has the following effect:
if details of a Cheque are transmitted electronically and the Cheque is delivered physically to the
drawers institution* or its clearing representative* on the day of deposit (Business Day 1); and
Last amended
effective 25/7/08
neither the depositors institution* nor its clearing representative has received a response by the
end of the following business day (Business Day 2); then
the depositors institution can assume the Cheque is paid. If it then makes the Cheque funds
available to its depositor on Business Day 3, it will be protected against tardy dishonour.
Last amended
effective 25/7/08
The preceding paragraph has been inserted to clarify the implications of Schedule 11 and its related
provisions for Participating Members rights and obligations generally in relation to electronic presentment
and electronic dishonours. As such, it must be read subject to the specific provisions of the remainder of
Schedule 11 and those related provisions.
*Note:
See Interpretation and Definitions section immediately below.

Last amended
effective 30/6/03
Interpretation and Definitions

In this Schedule 11 and Appendices E, F and K of these Procedures:
Sending Institution means a Tier 1A Participating Member which, as a direct clearer in a Region, sends a
file as specified in Appendices E or F to another direct clearer in that Region.

S11.1
[ABN 12 055 136 519]


Receiving Institution means a Tier 1A Participating Member which, as a direct clearer in a Region,
receives a file as specified in Appendices E or F from another direct clearer in that Region.
Drawee Institution means the Institution on which a Cheque is drawn.
Last amended
effective 25/7/08
Paying Institution includes, in the case of an Agency Cheque, the non-drawee Issuer of the Cheque.
Last amended
effective 22/01/09
This Schedule 11 refers specifically to Cheques. However in this Schedule 11 (except for Rule 1.1),
references to Cheques are to be read as including Australia Post money orders and other Debit Items which
the Management Committee at any time determines are acceptable for electronic exchange.
Last amended
effective 25/7/08
As a further matter of interpretation, references in the section above entitled General Effect to
depositors institution and drawers institution are to be taken to mean respectively a collecting
Institution and a Drawee Institution for the purposes of this Schedule 11, and references to a clearing
representative are to be taken to mean the direct clearer which is a Sending Institution or Receiving
Institution for the purposes of this Schedule 11, as the context requires.
Inserted
effective 25/5/99
Last amended
effective 01/01/12
Centralised contact point details in Appendix D

Each Participating Member must nominate, in writing, to the Company a contact point for the handling of
various operational issues or processes as specified in these Procedures. Details for these contact points are
published in the relevant appendix within Appendix D Centralised Contact Points in the Procedures.
Where it is necessary to amend any of the contact details, Participating Members must promptly notify the
changes to the Company, not less than 5 business days prior to such changes taking effect, clearly
identifying the effective date in the notification.
Details for Participating Members Processing Centre Contact Points are published in Appendix D1.
Inserted
effective 24/1/05
Agency Cheques and Delegated Authorities to Non-drawee Issuers

Presentment requests for Debit Items lost in transit, unprocessable Item or rejected technically invalid Item
in relating to Agency Cheques may only be directed to a non-drawee Issuer in accordance with Rules 1.7,
2.16 and 6.1 if the non-drawee Issuer is listed in Appendix D4, Appendix D13 and Appendix D14 as
having been delegated authority by the Drawee Insitution to directly respond to either a presentment
request for a Debit Item lost in transit, unprocessable Item or rejected technically invalid Item.
For a non-drawee Issuer to be listed in Appendix D4, Appendix D13 and Appendix D14 as having
delegated authority as an agent of the Drawee Institution to directly respond to either a presentment request
for a Debit Item lost in transit, unprocessable Item or rejected technically invalid Item for Agency Cheques
which are issued by that non-drawee Issuer, the Drawee Institution in relation to those Agency Cheques
must notify the Company in writing that the non-drawee Issuer has been delegated authority to directly
respond to either a presentment request for a Debit Item lost in transit, unprocessable Item or rejected
technically invalid Item in relation to Agency Cheques drawn on that Drawee Institution.
A notice under this Preamble must also contain particulars of the facsimile and telephone numbers for the
non-drawee Issuer to which presentment requests for either a Debit Item lost in transit, unprocessable Item
or rejected technically invalid Item in relation to Agency Cheques issued by that non-drawee Issuer may be
directed.
Such non-drawee Issuers are referred to in Rules 1.17; 2.16; and 6.1 as Delegated Non-drawee Issuers.
Where a Drawee Institution chooses to delegate authority to a non-drawee Issuer to directly answer either a
presentment request for a Debit Item lost in transit, unprocessable Item or rejected technically invalid Item
in relation to Agency Cheques, the Drawee Institution remains ultimately responsible for answers given by
the non-drawee Issuer pursuant to that delegated authority.

S11.2
[ABN 12 055 136 519]


A Drawee Institution which has delegated authority to a non-drawee Issuer and notified the Company of
that delegation under this Preamble may withdraw such delegated authority by written notice to the
Company. The withdrawal of such delegated authority takes effect upon notice of the withdrawal by the
Company to Participating Members.
Inserted
effective 22/01/09
The remainder of Schedule 11 is Confidential

1.
ELECTRONIC PRESENTMENT
Electronic presentment is a demand for payment of a Cheque effected by transmission of the Item
particulars in an agreed electronic form to the Drawee Institution (or, in the case of a Drawee Institution
which is not a direct clearer in any Region, its Tier 1A Clearing Representative for that Region), in
accordance with applicable procedures.
Last amended
effective 25/7/08
Electronic presentment files (except in Rule 1.16) comprise all types of electronic files required by
Appendices E and F for purposes of electronic presentment.
General
1.1
Each Participating Member and non-member Appointor which is a Drawee Institution must:
Last amended
effective 20/7/09
(a)
Last amended
effective 20/7/09
publish in the Commonwealth of Australia Gazette:

its acceptance of Item particulars by means other than exhibition, by notice in the form
set out in Appendix G1; and
if applicable, details of its designated exhibition place in respect of Items which have
been presented to it by electronic means and for which it requests exhibition, by notice in
the form set out in Appendix G2 (Note: the Cheques Act 1986 requires exhibition of a
Cheque presented externally by the means provided for in this Schedule 11, to be made
to the proper place of the Cheque or to a designated exhibition place); and
(b)
forward a copy of all Appendix G1 notices and/or Appendix G2 notices published in the
Commonwealth of Australia Gazette to APCA.
Last amended
effective 20/7/09
Last amended
effective 20/7/09
before the date of the Drawee Institutions first electronic exchange for value under these
Procedures (see introductory Notes), to take effect not later than that date.
1.2
Each Tier 1A Participating Member which is a direct clearer in a Region must have the ability to
transmit/receive electronic presentment files to/from all other direct clearers in that Region.
1.3
Each Tier 1B and Tier 2 Participating Member and each non-member Appointor which is a
Drawee Institution must have the ability to receive particulars of Items by means other than
exhibition from their Tier 1A Clearing Representative.
1.4
Each Drawee Institution must, in relation to Agency Cheques drawn on it have the ability to
communicate particulars to any other relevant Paying Institution, by means other than exhibition.
Exchange of Data
1.5
Transmission files must contain Cheque data in the agreed formats set out in Appendices E and
F.
1.6
Electronic presentment files must be formatted in accordance with Appendices E and F and will
be exchanged on a bilateral basis at agreed times.

S11.3
Last amended
effective 25/7/08
[ABN 12 055 136 519]


For the purposes of each Gazette notice given pursuant to Appendix G1, the days and hours
designated as the times when the Drawee Institution will accept electronic presentment to it in a
particular Region are between:
9.00am and 10.30pm (Sydney time) Monday to Thursday other than on the last business
day immediately preceding either Christmas day or any public holiday occurring on a
Friday in the place of the Receiving Institution; and
Last amended
effective 30/10/02
9.00am and 11.30pm (Sydney time) Friday and the last business day immediately
preceding either Christmas day or any public holiday occurring on a Friday in the place of
the Receiving Institution;
Last amended
effective 30/10/02
on each business day that the Receiving Institution is open for business in that Region.
1.7
Last amended
effective 30/10/02
For the purposes of the Drawee Institution making a voucher request under Rule 2.7(b), the
collecting Institution is to be taken to have specified:
the BSB (Sending FI) in the presentment file header record received from the Sending
Institution (see Appendices E and F) as the nominated place;
the hours specified in Rule 2.6 as the nominated time; and
Last amended
effective 30/9/99
the means of communication as specified in these Procedures as the nominated means of

communication;
within the meaning of subsection 62(3A) of the Cheques Act 1986.
Last amended
effective 30/10/02
Responsibility
1.8
The collecting Institution must ensure that all Cheques contain full presentment particulars:
Last amended
effective 30/10/02
amount;
serial number;
Drawee Institutions BSB Number; and
drawers account number.
1.9
The capturing Institution (which need not be either the collecting Institution or the Sending
Institution) captures codeline data. The capturing Institution must ensure that all codeline data is
captured/input for transmission and warrants that it matches the data on the Cheque forwarded
not-for-value to the Drawee Institution.
It is mandatory to repair or input manually codeline data from a mutilated or damaged Cheque
where sufficient data clearly exists on it to complete full presentment particulars from the MICR
codeline for electronic presentment. Where codeline data is repaired or input manually the
electronic presentment Manual Repair field must be flagged (see Appendix F clause F.1) and
the Cheque must be placed in a Carrier Envelope in accordance with Schedule 10, Rule 6, where
the Item is mutilated or damaged to the extent that it is likely to cause malfunction of processing
equipment.
Last amended
effective 11/10/06
Cheques which have a full MICR codeline rejection may be possible Suspected Counterfeit
Cheques (see Schedule 10, Rule 4.2).
Last amended
effective 19/07/04

S11.4
[ABN 12 055 136 519]


1.10
The Sending Institution must ensure that all records and files are formatted to the agreed
standards set out in Appendices E and F. Check digit validation must be performed to each
Drawee Institutions requirements as specified in its Capture Validation Rules [deleted: agreed
by bilateral arrangement with the Receiving Institution].
1.11
The Receiving Institution must validate all electronic presentment files received and must do one
or more of the following:
Last amended
Effective
9/12/2009
acknowledge acceptance of files; or

for files that have been accepted but which contain invalid records (representing
individual Items for which electronic presentment cannot therefore be effected in that
particular transmission), return any such rejected records; or
reject files.
in each case in accordance with Appendices E and F.
1.12
The Drawee Institution must:

acknowledge (by default) presentment has been effected for each relevant Item; or
initiate a voucher required message to request exhibition of any particular Item (see Rule
2.7(b)).
Exchange of Paper
1.13
Cheques captured for electronic presentment will be exchanged not-for-value at specified

locations in each Region at agreed times as listed in Schedule 1: see also Schedule 4.
Accordingly, when a Drawee Institution requires exhibition, the voucher will already be in
transit to the Drawee Institution or its designated exhibition place (see Appendix G2).
Last amended
effective 25/7/08
[Note intentionally deleted].
Deleted
effective 30/9/99
Batches of not-for-value paper must be limited in size to approximately 3,000 Items. For each
exchange a standard not-for-value batch header (see Appendix C3) must be placed at the front of
the batch indicating:
the full name of the Sending Institution including ACN/ARBN/ABN (logo optional);
the name of the Receiving Institution; and
the date that the value was exchanged.
The vouchers must be presented in a uniform manner with all Items facing the same way.
1.14
Where any Cheque cannot be exchanged on the same transmission day as the electronic
presentment record is exchanged, it must be flagged as a delayed voucher exchange using a
D indicator (see Appendix F clause F.1) and must be exchanged on the next business day
following transmission of the electronic presentment record.
Last amended
effective 25/7/08
1.15
Any Cheque which cannot be captured for electronic presentment, including rejected Items, must
be exchanged for value at Specified Locations in the relevant Region at agreed times set out in
Schedule 1, and Schedule 10 will apply accordingly.
Last amended
effective 25/7/08

S11.5
[ABN 12 055 136 519]


Settlement
1.16
The net value of electronic presentment files and technically invalid electronic presentment files
(in each case as those terms are defined in Appendix E) exchanged will be included in File
Settlement Instructions submitted to the RITS Low Value Settlement Service in accordance with
Rule 5 of Schedule 4.
Amended effective
22/10/12
Last amended
effective 24/1/05
1.17
When the collecting Institution or its relevant Tier 1A Clearing Representative becomes aware of
the loss of a Debit Item the following process may be used to request presentment based on a
copy or image of the Item.
Amended
effective 10/10/05
The collecting Institution or its relevant Tier 1A Clearing Representative may send to the
Drawee Institution/Delegated Non-drawee Issuers relevant contact point specified in Appendix
D14, a facsimile or e-mail request with a copy or image of the Item requesting the Drawee
Institution/Delegated Non-drawee Issuer to effect presentment and advise the fate of the Item.
Last amended
effective 22/01/09
The request must show full MICR details, be substantially in the form of Appendix C10 and be
accompanied by a copy or image of the Item. If the request is by e-mail transmission then an
electronic version of Appendix C10 (as a rich text format attachment) must be used.
Amended
effective 10/10/05
The Drawee Institution/Delegated Non-drawee Issuer must acknowledge receipt of the request
by 12 noon (Sydney time) on the business day following receipt of the request, by sending a
facsimile response to the contact point specified in the request from the collecting Institution or
its relevant Tier 1A Clearing Representative (whichever Institution is specified in the request).
The response must state:
Last amended
effective 22/01/09
(a)
that the Item is Paid, in which case a stop payment must be placed on the lost Cheque
against the Drawers account and a credit voucher for the value of the Item must be
despatched to the collecting Institution or its relevant Tier 1A Clearing Representative; or
Last amended
effective 25/7/08
(b) that the Item is Not Paid, and provide the appropriate answer; or
(c)
Replacement Item Required and Now Being Sought, payment will not be made from
the copy or image of the Item in which case the Drawee Institution must endeavour to
obtain a replacement Item from the Drawer/Delegated Non-drawee Issuer.
Last amended
effective 22/01/09
Each Participating Members contact details for the purpose of this Rule are set out in Appendix
D14. Participating Members must promptly notify changes in these details to the Company in
accordance with requirements set out in the Preamble to Schedule 11 of these Procedures
2.
ELECTRONIC DISHONOURS (AND RETURN MESSAGES)

Electronic dishonour is a refusal to pay a Cheque by the Drawee Institution which is
transmitted in electronic form to the collecting Institution in accordance with applicable
procedures.
Last amended
effective 25/7/08
Electronic dishonour/return files comprise all types of electronic files required by Appendices
E and F for the purposes of electronic dishonour and return messages, unless the context requires
otherwise.

S11.6
[ABN 12 055 136 519]


Return messages comprise item not yet to hand and voucher required messages. For the
avoidance of doubt, an item not yet to hand message is value data which is transmitted in an
electronic dishonour file, but does not constitute an electronic dishonour.
Note: Please refer to the Rules in Schedule 10 set out below for the following:
Suspected Counterfeit Cheques: Rule 4.2;
Dishonour of lost, stolen, forged or counterfeit Cheques: Rule 4.3
Dishonoured Debit Items potential fraud: Rule 4.4;
Monitoring of dishonours: Rule 4.5.
Last amended
effective 25/7/08
General
2.1
Each Tier 1A Participating Member which is a direct clearer in a Region must have the ability to
transmit/receive electronic dishonour/return files to/from all other direct clearers in that Region.
2.2
Each Tier 1B and Tier 2 Participating Member and each non-member Appointor which is a
Drawee Institution must have the ability to communicate outward dishonours and return
messages to its Tier 1A Clearing Representative.
2.3
Each Paying Institution must, in relation to Agency Cheques in respect of which it is not the
Drawee Institution, have the ability to communicate outward dishonours and return messages to
the relevant Drawee Institution.
2.4
Each Tier 1A Clearing Representative must have the ability to communicate inward electronic
dishonours and return messages to its Appointors.
(Note: Each Appointor must communicate outward dishonours and return messages through
the Tier 1A Clearing Representative from which it received the relative Item particulars: see
Appendix E.)
Exchange of Data
2.5
Transmission files must contain dishonour/return data in the agreed formats set out in
Appendices E and F.
2.6
Electronic dishonour/return files must be formatted in accordance with Appendices E and F and
will be exchanged on a bilateral basis at agreed times. Such exchanges must be completed by no
later than:
10.30pm (Sydney time) Monday to Thursday other than on the last business day
immediately preceding either Christmas day or any public holiday occurring on a Friday
in the place of the Receiving Institution(s); and
11.30pm (Sydney time) Friday and the last business day immediately preceding either
Christmas day or any public holiday occurring on a Friday in the place of the Receiving
Institution(s);
Last amended
effective 30/10/02
Last amended
effective 30/10/02
and within the time-frames set out in Rules 2.7 to 2.9 inclusive.

S11.7
[ABN 12 055 136 519]


Responsibilities
2.7
The Drawee Institution must, by the close of business on the next business day following
transmission of an electronic presentment file:
(a)
effect electronic dishonour of any individual Item for funds reasons with the standard
answer of:
refer to Drawer (using return code 932); or
arrangements incomplete (using return code 919); or
effects not clear (using return code 924); or
(b)
initiate a voucher required message to indicate exhibition is required for any individual
Item; or
(c)
dishonour any individual Item for reasons other than funds reasons (ie those listed in Rule
2.7 (a)); or
(d)
delay the decision to initiate a voucher required message or delay the decision to
dishonour any individual Item for reasons other than funds reasons (ie. those listed in
Rule 2.7 (a)) where presentment particulars indicate a delayed voucher exchange (see
Rule 1.14); or
(e)
pay the Item.
(Note: Exhibition under Rule 2.7(b) may be made to the proper place of the Cheque or the
designated exhibition place pursuant to a Gazette notice- see Rule 1.1 and Appendix G2).
2.8
Where a Drawee Institution delays making a decision on the next business day as provided for
by Rule 2.7 (d), a decision to initiate a voucher required message or to dishonour the Item must
be made by the close of business on the following business day.
2.9
Where a Drawee Institution has previously initiated a voucher required message, a decision must
be made by the close of business on the following business day:
(a)
Last amended
effective 25/7/08
if the voucher is to hand to:

pay the Item; or
dishonour the Item for reasons other than funds reasons (ie. those reasons listed in
Rule 2.7 (a)); or
(b)
2.10
if the voucher is not to hand, to return the value item not yet to hand.
Electronic dishonour or return of an Item may be made in the following circumstances

using the listed return codes:
Note: It is up to each Institution to establish internal procedures to ensure that the answers set
out in this Rule are used only in appropriate circumstances, in order to minimise its potential
exposure to legal liability associated with the use of an incorrect answer (eg. in defamation).

S11.8
Inserted
effective 31/12/99
[ABN 12 055 136 519]


2.10.1
Debit Items other than Financial Institution Cheques, Australia Post Money Orders,
Warrants and Travellers Cheques
Return Code
Standard Answers
914
Account closed

customer.
915
Account transferred to ... [record BSB

of transferee Institution, see Appendix
F, clause F.3.]

customer and transferred to another
Institution.
916
Alteration requires drawer's initials
Where Drawee Institution requires initials

to alteration.
917
Alteration requires drawer's signature
Where Drawee Institution requires

signature to alteration.
918
Another signature required
Where more than one drawers signature is

required.
919
Arrangements Incomplete
Where funds should be available after

arrangements are completed.
920
Drawer deceased
Where more than 10 days have elapsed

since Drawee Institution received advice of
the drawer's death or where a lesser time
has elapsed and countermand of payment
has been received from a person claiming
entitlement to administer the deceased's
estate or claiming to be a beneficiary of the
estate.
923
Drawer's signature required
Where drawer's signature is required.
924
Effects not clear
Where there are sufficient funds but

drawing is against uncleared funds.
926
Where exhibition of a Cheque is required

and the voucher has not arrived at the
Drawee Institution by the required day.
Last amended
effective 25/7/08
927
Mutilated
Where mutilated Cheque is not confirmed

by the signature of the drawer or the
collecting Institution.
Last amended
effective 25/7/08
928
Not signed in accordance with

authority held
Where a Cheque is not signed in

accordance with authority held by Drawee
Institution.
Last amended
effective 25/7/08
929
Payment stopped
Where the drawer countermands payment.
Last amended
effective 7/9/2000

S11.9
[ABN 12 055 136 519]


930
Payment stopped - awaiting

confirmation
Where an unconfirmed telephone request

is made to countermand payment.
931
Post-dated
Where Cheque bears a date in the future.
932
Refer to drawer
Funds related reasons, eg:

Where there are insufficient funds.
Last amended
effective 25/7/08
Where account closed by Drawee

Institution (eg., where balance of account
reduced to nil balance by fees).
933
Refer to drawer
Other legal reasons, eg:

Company has gone into liquidation but
a receiver has not been appointed.
Receiver has been appointed.
Funds are subject to a garnishee
order/notice under:
S.1233 of the Social Security
Act; or
S.218 of the Income Tax
Assessment Act, etc.
936
Signature unknown
Where signature on Cheque is unknown to

Drawee Institution.
Last amended
effective 25/7/08
937
Signature unlike specimen held
Where signature on Cheque is unlike

specimen held by Drawee Institution.
Last amended
effective 25/7/08
938
Stale
Where Cheque is over 15 months old.
Last amended
effective 25/7/08
939
Turned-back Item
Where the Drawee Institution has become

a Failed Financial Institution within the
Act 1986 of Australia.
Last amended
effective 20/08/04
940
Duplicate Item
Where the Drawee Institution has received

a duplicate Item.
941
Unprocessable Item
Where the Drawee Institution has

insufficient information to process the
Item, eg. where the Item has failed
validation at the Receiving Institution and
the voucher has not arrived at the Drawee
Institution by the end of the next business
day following electronic presentment of
the Item.
942
No Account
Where the Drawee Institution has the

voucher, but cannot apply it to any
account.

S11.10
[ABN 12 055 136 519]


943
Not authorised
Where forgery or counterfeit is suspected,

and the drawer has not responded to
request(s) to authorise payment.
Inserted
effective 27/3/2000
944
Drawers confirmation required.

Please represent.
Where a Drawee Institution has not

received an MT 110 (or some other form
of advice with similar information content)
in relation to an overseas issued ondemand Australian dollar denominated
(AUD) draft (see Rule 3.2 of Schedule 10).
Inserted
effective 27/3/2000
951
Where forgery or counterfeit is confirmed.
Inserted
effective 31/12/99
956
Foreign currency draft
Where a foreign currency denominated

draft is received (these payment
instruments are excluded under Rule 3.5
in Schedule 4 from being included in any
exchange).
Inserted
effective 17/3/03
Note: If a foreign currency denominated

draft is returned with this standard answer
the return may not be refused and the
draft must not be re-presented through the
APCS. The provision of this standard
answer in respect of foreign currency
denominated drafts in no way implies that
the APCS Regulations and these
to foreign currency denominated drafts.
957
AUD instrument not payable in

Australia
Where an AUD instrument not payable in

Australia is received (these instruments
are excluded under Rule 3.5 in Schedule
4 from being included in any exchange).
Inserted effective
22/03/04
Note: If an AUD instrument not payable

in Australia is dishonoured with this
standard answer the dishonour may not
be refused and the AUD instrument must
not be represented through the APCS.
The provision of this standard answer in
respect of an AUD instrument not
payable in Australia in no way implies
that the APCS Regulations and these
to such AUD instruments.

S11.11
[ABN 12 055 136 519]


958
2.10.2
Photocopied Item
Where a photocopy of an Item is

received.
(Photocopied Items are
excluded under Rule 3.5 in Schedule 4
from being included in any exchange.)
Inserted
effective 18/4/05
Note: If a photocopied Item is returned

with this standard answer the return may
not be refused and the photocopied Item
must not be represented through the
APCS.
Inserted
effective 18/4/05
Last amended
effective 17/6/99
Return Code
Standard Answers
926
Where exhibition of the Financial

Institution Cheque is required and the
voucher has not arrived at the Drawee
Institution by the required day.
Inserted
effective 30/9/99
939
Turned-back Item
Where the Drawee Institution has become

a Failed Financial Institution within the
Act of Australia.
Last amended
effective 20/08/04
940
Duplicate Item

a duplicate Item.
951
Such instruments are not Financial

Institution Cheques and may be
dishonoured.
Last amended
effective 17/6/99
952
A Financial Institution may dishonour a

Financial Institution Cheque that has been
materially altered.
Financial Institution Cheque in a Carrier
Envelope does not, by itself, constitute a
Last amended
effective 11/10/06
953
Where a Financial Institution is informed

and is satisfied that a Financial Institution
Cheque has been lost or stolen, the
Financial Institution may dishonour it if it
is presented for payment by or on behalf
of a party who has no title to it.
Last amended
effective 17/6/99

S11.12
[ABN 12 055 136 519]


954
Court order restraining payment
A Financial Institution is compelled to

observe an order of a court restraining the
Financial Institution from paying a
Financial Institution Cheque that may be
presented for payment while the order is in
force.
Last amended
effective 17/6/99
955
Failure of consideration for the issue of

a Financial Institution Cheque
Where there has been failure of

consideration for the issue of a Financial
Institution Cheque, the issuing Financial
Institution may dishonour the Cheque only
if either:
Last amended
effective 25/7/08
the holder has not given value for that

Financial Institution Cheque, or
if the holder has given value, the
holder had, at the time of giving value,
knowledge of the failure of
consideration for the issue of that
Financial Institution Cheque.
2.10.3
Return Code
2.10.4
Standard Answers
926
Where exhibition of the money order is

required and the voucher has not arrived at
the Drawee Institution by the required day.
Last amended
effective 11/10/06
929
Payment stopped
Where Australia
payment.
Last amended
effective 7/9/2000
938
Stale
Where money order is over 12 months old.
940
Duplicate Item

a duplicate Item.
952
Item is void because it has been materially

altered.
money order in a Carrier Envelope does
not, by itself, constitute a material
alteration.
Standard Answers
Where exhibition of the Warrant is

required and the voucher has not arrived at
the Drawee Institution by the required day.
Post
countermands
Last amended
effective 11/10/06
Warrants
Return Code
926

S11.13
Inserted
effective 30/9/99
[ABN 12 055 136 519]


2.10.5
940
Duplicate Item

a duplicate Item.
951
Such instruments are not Warrants and

there is no obligation to honour them.
952
An Institution may dishonour a Warrant

which has been materially altered.
Warrant in a Carrier Envelope does not, by
itself, constitute a material alteration.
953

satisfied that a Warrant was lost or stolen,
the Institution may not honour it if the
Warrant is presented for payment by or on
behalf of a party who has no title to it.
Travellers Cheques
Return Code
2.11
Last amended
effective 11/10/06
Standard Answers
926
Where exhibition of the travellers Cheque

is required and the voucher has not arrived
at the Drawee Institution by the required
day.
Last amended
effective 25/7/08
937
Signature unlike specimen
Where signature on travellers Cheque is

unlike specimen on Cheque
Last amended
effective 25/7/08
940
Duplicate Item

a duplicate Item.
951
Such instruments are not travellers

Cheques and there is no obligation to
honour them.
Last amended
effective 25/7/08
952
An Institution may dishonour a travellers

Cheque which has been materially altered.
travellers Cheque in a Carrier Envelope
does not, by itself, constitute a material
alteration.
Last amended
effective 25/7/08
953

satisfied that a travellers Cheque was lost
or stolen, the Institution may not honour it
if the travellers Cheque is presented for
payment by or on behalf of a party who
has no title to it.
Last amended
effective 25/7/08
The Sending Institution must ensure that all records and files are formatted to the agreed
standards set out in Appendices E and F.

S11.14
[ABN 12 055 136 519]


2.12
The Receiving Institution will validate all electronic dishonour/return files and:
acknowledge acceptance or rejection of files; and
return rejected records.
in accordance with Appendices E and F.
2.13
The collecting Institution must make a decision by the close of business on the next business day
following receipt of an electronic dishonour/return file whether to refuse the electronic
dishonour or return of any individual Item (see Rule 3).
Electronic Dishonour Mailing Advice

2.14
The Drawee Institution will return any dishonoured Cheque (not for value) to the collecting
Institution (specified in the BSB (collecting FI) field of the presentment record (see Appendix F
clause F.3)) using an electronic dishonour mailing advice (see Appendix C4). The electronic
dishonour mailing advice and Debit Item (or photocopy in the case of an Australia Post money
order) should be dispatched on the same day as the dishonour decision is made and must be
dispatched no later than the next business day.
Last amended
effective 25/7/08
Where the Debit Item cannot be located the electronic dishonour mailing advice will note
Missing Item, in addition to the dishonour answer.
Settlement
2.15
The net value of electronic dishonour files and technically invalid electronic dishonour files (in
each case as those terms are defined in Appendix E) exchanged will be included in File
Settlement Instructions submitted to the RITS Low Value Settlement Service in accordance with
Rule 5 of Schedule 4.
Amended effective
22/10/12
Unprocessable Items
Inserted
effective 20/01/03
2.16
Amended
effective 10/10/05
Where a Drawee Institution dishonours an electronic presentment record with the answer
Unprocessable Item as provided for in Rule 2.10.1 and it is returned to the original Sending
Institution then, if the original Sending Institution is aware from a copy or image held of that
Item that it was not intended for that Drawee Institution, the following procedures can be
applied.
The collecting Institution (or its relevant Tier 1A Clearing Representative) may send a facsimile
or e-mail request to the Drawee Institution (or its relevant Tier 1A Clearing
Representative)/Delegated Non-drawee Issuer to either:
locate the voucher, effect presentment and advise the fate of the Item, or
effect presentment from the copy or image of the voucher provided by the collecting
Institution (or its relevant Tier 1A Clearing Representative) and advise the fate of the Item.
The request must show full MICR details, include a copy or image of the Item (if available) and
be substantially in the form of Appendix C9. If the request is made by e-mail transmission then
an electronic version of Appendix C9 (as a rich text format attachment) must be used.

S11.15
Last amended
effective 22/01/09
Inserted
effective 10/10/05
Amended
effective 10/10/05
[ABN 12 055 136 519]


The Drawee Institution (or its relevant Tier 1A Clearing Representative)/Delegated Non-drawee
Issuer must attempt to locate the voucher or act on the copy or image of the Item to effect
presentment and will by 12 noon (Sydney time) on the business day following receipt of the
request, send a response to the collecting Institution (or its relevant Tier 1A Clearing
Representative) stating that the Item is:
Paid, if the voucher is located and paid or payment is made from the copy or image of the
Item, in which case a credit voucher for the value of the Item will be despatched to the
collecting Institution; or
Not Paid, if either:
Last amended
effective 22/01/09
Amended
effective 10/10/05
the voucher is located and dishonoured in which case the dishonoured Item will be
returned to the collecting Institution on a not-for-value basis; or
a non-payment decision is made from the copy or image of the Item, in which case the
dishonoured copy or image of the Item will be returned to the collecting Institution on a
not-for-value basis; or
Item not yet to hand. Replacement Item being sought, if the Item is not located or
payment will not be made from the copy or image of the Item, in which case the Drawee
Institution/Delegated Non-drawee Issuer must endeavour to obtain a replacement Item from
the Drawer.
Amended
effective 10/10/05
Last amended
effective 22/01/09
Amended
effective 10/10/05
Details for Participating Members' "Unprocessable Item" contact points are in Appendix D13.
Changes to these contact details must be promptly notified to the Company in accordance with
requirements set out in the Preamble to Schedule 11 of these Procedures.
2A.
ACCEPTANCE OF OTHERWISE OUT-OF-TIME DISHONOURS
Inserted
effective 24/1/05
Inserted
effective 7/9/2000
The acceptance of any dishonour that would otherwise be out-of-time, resulting from
processing or technical difficulties experienced by the Drawee Institution, is wholly at the
proprietary discretion of the collecting Institution, and is on a provisional basis. If such a
dishonour is provisionally accepted and the collecting Institution subsequently:
determines in good faith that it is unable to apply the dishonour; or
suffers (or determines in good faith that it is likely to suffer) loss as a result of such
acceptance,
it may return the dishonour outside of the times specified in Rules 2.13 and 3.6, provided that
such return occurs within 90 days after provisional acceptance of the dishonour.
3.
ELECTRONIC DISHONOUR REFUSALS

An electronic dishonour or return message may be refused by a collecting Institution under
certain circumstances.
Electronic dishonour refusal is such a refusal effected by transmission of a dishonour refusal
message in electronic form to the Drawee Institution (or if it is not a direct clearer in a Region,
its Tier 1A Clearing Representative for that Region).
Electronic dishonour refusal files comprise all types of electronic files required by Appendices
E and F for purposes of electronic dishonour refusals, unless the context requires otherwise.

S11.16
[ABN 12 055 136 519]


(Note:
where the Drawee Institution is not the Receiving Institution, dishonour refusal
messages in response must be directed to the Tier 1A Clearing Representative
through which the Drawee Institution communicated the relative dishonour/return
particulars: see Appendix E).
General
3.1
A Tier 1A Participating Member which is a direct clearer in a Region must have the ability to
transmit/receive electronic dishonour refusal files to/from all other direct clearers in that Region.
3.2
Tier 1B and Tier 2 Participating Members and non-member Appointors which are collecting
Institutions must have the ability to communicate outward dishonour refusals to their Tier 1A
Clearing Representative.
3.3
Tier 1A Clearing Representatives must have the ability to communicate inward electronic
dishonour refusals to their Appointors.
(Note:
Each Appointor must communicate outward dishonour refusals through the

Clearing Representative from which it received the relative dishonour particulars.)
Exchange of Data
3.4
Transmission files must contain dishonour refusal data in the agreed formats set out in
Appendices E and F.
3.5
Electronic dishonour refusal files must be formatted in accordance with Appendices E and F,
and will be exchanged on a bilateral basis at agreed times. Such exchanges must be completed
by no later than:
10.30pm (Sydney time) Monday to Thursday other than on the last business day
immediately preceding either Christmas day or any public holiday occurring on a Friday in
the place of the Receiving Institution(s); and
11.30pm (Sydney time) Friday and the last business day immediately preceding either
Christmas day or any public holiday occurring on a Friday in the place of the Receiving
Institution(s);
Last amended
effective 30/10/02
Last amended
effective 30/10/02
on each applicable day in accordance with Rule 3.6.

Responsibilities
3.6
The collecting Institution must make a decision by the close of business on the next business day
following receipt of an electronic dishonour file to refuse any individual dishonour/return, and
must communicate that decision in accordance with this Rule 3 by the cut-off time specified for
that day in Rule 3.5.
3.7
Refusal of an electronic dishonour may be made in the following circumstances using the listed
refusal codes:
Refusal Code
01
Standard Reason
Out-of-time dishonour
Dishonour received outside of the time

limitations permitted by Rules 2.7 to 2.91.
When determining whether rules 2.7 to 2.9 have been satisfied, the collecting Institution must take into account:
a/ messages received from the Drawee Institution (eg. was a voucher required message received?)

S11.17
[ABN 12 055 136 519]


Last amended
effective 25/7/08
Duplicate dishonour
Dishonour cannot be matched with a

Cheque presentment record.
Dishonour record has been duplicated.
04
Cheque cashed under Letter of

Credit
Dishonour of a Cheque cashed under a

Letter of Credit.
Last amended
effective 25/7/08
05
Cheque paid by Special Answer
Dishonour of a Cheque paid by special

answer.
Last amended
effective 25/7/08
02
Unmatched dishonour
03
3.8
The Sending Institution must ensure all records and files are formatted to the agreed standards
set out in Appendices E and F.
3.9
The Receiving Institution must validate all electronic dishonour refusal files and:
acknowledge acceptance or rejection of files; and
return rejected records.
in accordance with Appendices E and F.

3.10
On receipt of the electronic dishonour mailing advice (see Appendix C4), the collecting
Institution must either:
Last amended
effective 30/9/99
(a)
return any dishonoured Cheque that has been refused (except any refusal under return
code 03) to the Drawee Institution using an electronic dishonour refusal mailing advice
(see Appendix C5); or
Last amended
effective 25/7/08
(b)
return the electronic dishonour mailing advice to the Drawee Institution, suitably
amended with the notation Electronic Dishonour Refusal and recording the reason for
refusal and the refusal transaction identifier.
Settlement
3.11
The net value of electronic dishonour refusal files and technically invalid electronic refusal files
(in each case as those terms are defined in Appendix E) will be included in File Settlement
Instructions submitted to the RITS Low Value Settlement Service in accordance with Rule 5 of
Schedule 4.
Amended effective
22/10/12
4.
CONTINGENCY PROCEDURES
Last amended
effective 30/8/02
In the event of a transmission failure that is irrecoverable within an acceptable timeframe,

electronic files may be exchanged on a bilateral basis by using contingency exchange
arrangements tabled in Appendix O or by other mutually agreed means.
Last amended
effective 30/8/02
All Tier 1A Participating Members must include the use of email as a minimum contingency
exchange arrangement.
Inserted
effective 30/6/03
b/ whether there were any business days when the Drawee Institution was not open for business (see Rule 7).
c/ whether the electronic presentment record has a delayed voucher indicator.

S11.18
[ABN 12 055 136 519]


Exchange of Data
4.1
Exchange files must contain data in the agreed formats set out in Appendix F.
Last amended
effective 30/8/02
4.2
Exchange files and media must meet the minimum requirements set out in Appendix E.
Last amended
effective 30/8/02
Responsibilities
4.3
The Sending Institution will be responsible for formatting records and files to the agreed
standards set out in Appendices E and F and for exchange to the Receiving Institution in
accordance with Appendix E.
Last amended
effective 30/8/02
4.4
The Receiving Institution will be responsible for validation of the file(s) on receipt.
Last amended
effective 30/8/02
Acknowledgment or return of rejected Items/files (see Appendix E) will be communicated by

agreed means (eg. by electronic transmission, physical medium or paper report) with the
Sending Institution.
Last amended
effective 30/8/02
4.4A
If bilaterally agreed contingency exchange arrangements are invoked as part of the half calendar
year testing of such contingency arrangements, the Sending Institution must ensure that files sent
are not duplicated.
Last amended
effective 25/7/08
4.4B
If bilaterally agreed contingency exchange arrangements are invoked in an actual Disabling

Event (that is, not a test), it is the responsibility of the Receiving Institution to ensure that it does
not process duplicated files received over the primary link.
Inserted
effective 03/04/06
Inserted
effective 30/6/03
Options
4.5
Where processing difficulties occur, depending upon the circumstances, remedial action could
include:
(a) Agreeing to delay transmission pending resolution of the problem;
(b) Invoking bilaterally agreed arrangements which are in place and recorded in Appendix O;
(c) Invoking the contingency procedures (as set out in Appendix K); or
(d) Invoking use of bilaterally agreed physical medium for contingency exchanges where the
use of electronic communications for primary and contingency exchange arrangements are
rendered unusable.
4.6
If bilaterally agreed contingency exchange arrangements are invoked the Sending Institution
must complete and forward a Contingency File Exchange Form (as set out in Appendix P1) to
the Receiving Institution.
4.7
Tier 1A Participating Members are required to record all agreed primary exchange arrangements
(as set out in Appendix N) in the APCS Procedures and immediately notify the Company of any
changes to these arrangements.
Tier 1A Participating Members are required to record all bilaterally agreed contingency
exchange arrangements (as set out in Appendix O) in the APCS Procedures and immediately
notify the Company of any changes to these arrangements.

S11.19
[ABN 12 055 136 519]


Inserted
effective 30/6/03
Physical Medium Exchange Standards

4.8
Complete identifying information relating to ownership of the physical medium and details of
contents must be marked on each piece of physical medium exchanged. Such information must
include the following:
creation date;
Item number n of Total Items (eg: cartridge 1 of 3);
date to be processed; and
the Sending Institutions name and return address.
Inserted
effective 30/6/03
Read/Write Format Standards for Physical Medium

4.9
The industry standard for physical medium is compact disc. The following read/write format
standards apply unless other formatting is bilaterally agreed between exchanging parties:
CD-ROM
CD-ROM, 600 Megabyte (MB)
Other forms of physical medium used must be bilaterally agreed between exchanging parties.
Inserted effective
30/8/02
Contingency Exchange Arrangements

4.10
A Tier 1A Participating Member who experiences partial or total loss of primary exchange
arrangements resulting in a Disabling Event (see Appendix K) may be required to invoke
contingency exchange arrangements with other Tier 1A Participating Members. The industry
standard for these arrangements is bilaterally agreed alternate electronic communications.
Last amended
effective 30/6/03
Bilateral Testing of Contingency Exchange Arrangements
Inserted effective
30/8/02
4.11
Last amended
effective 25/7/08
A Tier 1A Participating Member must bilaterally test its contingency exchange arrangements,
which may be alternate electronic communications or a secondary method of contingency
exchange arrangements, with a minimum of two other Tier 1A Participating Members at least
once each calendar half year and in accordance with the Contingency Exchange Testing
Schedule.
The Contingency Exchange Testing Schedule specifies the Tier 1A Participating Members with
which to conduct testing on a rotating basis to ensure that the contingency exchange
arrangements with all Tier 1A Participating Members are tested over a period of time that is no
more than two calendar years apart. The Contingency Exchange Testing Schedule will be revised
in the event of the admission or resignation of a Tier 1A Participating Member or a change in the
capacity in which a Tier 1A Participating Member participates in the Australian Paper Clearing
System (CS1).
Amended effective
19/06/06
4.12
A Tier 1A Participating Member must send live data using the contingency exchange
arrangements and the data received must be used to process actual live transactions.
Transmitting duplicate data during the test using primary exchange arrangements is not
permitted.
Inserted effective
03/04/06
4.13
Tier 1A Participating Members using physical medium for contingency exchange arrangements
must complete a successful test of each bilateral arrangement at least once each calendar half
year until replaced with alternate electronic communications.
Last amended
effective 25/7/08

S11.20
[ABN 12 055 136 519]


Amended effective
03/04/06
Contingency Procedures Testing Certificate

4.14
All Tier 1A Participating Members must sign a Contingency Procedures Testing certificate each
calendar half year to certify that the Tier 1A Participating Member has successfully tested its
contingency exchange arrangements in accordance with Rules 4.11, 4.12 and 4.13.
Last amended
effective 25/7/08
4.15
The Company will issue all Tier 1A Participating Members with a memorandum and
Contingency Procedures Testing certificate each calendar half year requesting Tier 1A
Participating Members to finalise all bilateral testing and sign the certificate. The certificate
must be returned to the Company in the timeframes specified.
Last amended
effective 25/7/08
4.16
Management Committee will be advised of all outcomes including any Tier 1A Participating
Member who fails to provide a signed certificate. Management Committee will determine the
course of action required.
Amended effective
03/04/06
Standards For Email File Exchange and Security
Inserted
effective 30/6/03
4.17
Renumbered effective
03/04/06
Each Sending Institution must comply with the following minimum standards for the exchange
of files:
(a)
The email must be flagged as High Priority or High Importance;
(b)
The maximum file size which can be attached to the email must not exceed 5 Megabytes
(MB);
(c)
The email security package must, at a minimum, include the following encryption
features:
Last amended
effective 25/7/08
(i)
the ability to prevent viewing of email and its attachments by outside parties other
than the intended recipient;
(ii) the ability to prevent the email and its attachments being read by unauthorised
persons within your organisation;
(iii) the ability to securely send the email and its attachments locked with a public
key;
(iv) the ability of the recipient to open the email and its attachments by unlocking the
transmission with a securely generated private key;
(v) the ability to digitally sign the email transmission; and
(d)
The naming conventions for the email are as follows:

(i)
The format of the file name is:

EP_F_xx_SSS_RRR_CCC
(ii)
F = the file type as follows:

A = EP presentment file
B = EP acknowledgement and TI file
C = TI acknowledgement file (EP)
D = Dishonour, Dishonour refusal and V/R file
E = Dis, etc acknowledgement and TI file
F = TI acknowledgement file (Dis, etc)

S11.21
Inserted
effective 19/9/03
[ABN 12 055 136 519]


(iii) xx = file number 01-99. For each Disabling Event the file number commences at
01 and increases by 1 for each file (irrespective of file type), until processing
returns to normal, even if the Disabling Event spans several days. This ensures
that each file has a unique file number.
(iv) SSS = 3 character Sending Institution mnemonic. An Institution sending files on

behalf of another Institution must, with respect to those files, use the mnemonic
belonging to the Institution on whose behalf it is sending those files.
(v)
RRR = 3 character Receiving Institution mnemonic. An Institution receiving files

on behalf of another Institution must, with respect to those files, use the mnemonic
belonging to the Institution on whose behalf it is receiving those files.
(vi) CCC = 3 character financial institution mnemonic of the courier, if applicable.

(vii) The email subject line must include the file name.
(viii) Each email must contain one file only. Members can agree to include more than
one file by bilateral agreement and in this case the file names in the subject line
must be separated by a slash (/).
(ix) The Sending Institution must send the email to the nominated email address
provided by the Receiving Institution on the email file exchange contacts database
managed by the Company. The email address should preferably be a generic
address (eg. operations@FI.com.au) rather than an individuals address (eg.
Mike@FI.com.au).
(x)
Members can agree to exchange zipped files by bilateral agreement. The file name
will have an extension of .zip.
Email File Exchange Contacts Database
Inserted
effective 30/6/03
4.18
Renumbered effective
03/04/06
Where a Tier 1A Participating Member uses an email security package which requires the
exchange of public keys to securely send and read emails, the Tier 1A Participating Member
must have lodged any of its public keys in the email file exchange contacts database maintained
by the Company.
The email file exchange contacts database is managed by the Company and all Tier 1A
Participating Members are required to nominate an authorised contact to access the database for
lodgement and downloading of public keys and provide the following details:

S11.22
[ABN 12 055 136 519]


the Tier 1A Participating Members:

clearing system;
full name;
ACN/ARBN/ABN;
mnemonic;
public key;
authorised contact name and title;
authorised contact email and telephone details;
target email address for file transmissions;
contact name and telephone number to confirm receipt of email; and
the date the Tier 1A Participating Members details were added/updated on the database.
All Tier 1A Participating Members must complete and lodge an online Email File Exchange
Contacts Lodgement Form (as set out in Appendix P2) including attachment of the public keys
for use by other Tier 1A Participating Members. The lodgement form is available on the
Companys extranet.
When a Tier 1A Participating Member makes changes to its public keys or contact details, the
Email File Exchange Contacts Lodgement Form must be completed and lodged noting the
changes to contact details and/or attaching new public keys. Tier 1A Participating Members will
be advised of the changes to the database by CS1 operational memorandum.
The Email File Exchange Contacts Lodgement Form (as set out in Appendix P2) is used for
lodging or amending public keys or contact details which effect only Tier 1A Participating
Members.
5.
DISABLING EVENTS
Where because of a Disabling Event it is not appropriate to implement the contingency
procedures outlined in Rule 4, the provisions of Schedule 5 will apply.
6.
Last amended
effective 30/8/02
REJECTED ITEMS
Where a Receiving Institution rejects a record as technically invalid as provided for in
Appendices E and F and returns it to the original Sending Institution then, if the original
Sending Institution is unable to amend and re-send the record in a subsequent transmission for
that exchange day, the following procedures will apply.
Each Participating Member must nominate, in writing, to the Company contact point(s) to deal
with operational issues relating to Rejected Items as required in this Rule 6. Changes to such
contact points published in Appendix D4, D5 and D6 must be promptly notified to the Company
in accordance with the requirements set out in the Preamble to Schedule 11 of these Procedures.
Inserted
effective 24/1/05
Rejected Electronic Presentment Record

6.1
The collecting Institution (or its Representative) may, by 12 noon (Sydney time) on the next
business day following transmission of a rejected electronic presentment record, send a facsimile
or e-mail request to the Drawee Institution (or its relevant Tier 1A Clearing
Representative)/Delegated Non-drawee Issuer to locate the voucher, effect presentment and
advise the fate of the Item.

S11.23
Last amended
effective 22/01/09
[ABN 12 055 136 519]


6.2
The request must show full details of the presentment Item, the date the voucher was exchanged,
include a copy or image of the Item (if available) and be substantially in the form of Appendix
C6. If the request is made by e-mail transmission then an electronic version of Appendix C6 (as
a rich text format attachment) must be used.
Amended
effective 10/10/05
The Drawee Institution (or its relevant Tier 1A Clearing Representative)/Delegated Non-drawee
Issuer will attempt to locate the voucher to effect presentment or act on the copy or image of the
Item and will by 12 noon (Sydney time) on the business day following receipt of the facsimile
request, send a facsimile response to the collecting Institution (or its relevant Tier 1A Clearing
Representative) stating that the Item is:
Last amended
effective 22/01/09
Paid, if the voucher is located and paid or payment is made from the copy or image of the
Item, in which case a credit voucher for the value of the Item will be dispatched to the
collecting Institution; or
Amended
effective 10/10/05
Not Paid, if either:
Amended
effective 10/10/05
the voucher is located and dishonoured in which case the dishonoured Item will be
returned to the collecting Institution on a not-for-value basis; or
a non-payment decision is made from the copy or image of the Item, in which case the
dishonoured copy or image of the Item will be returned to the collecting Institution on a
not-for-value basis; or
Inserted
effective 10/10/05
Item not yet to hand. Replacement Item being sought, if the Item is not located or
payment will not be made from the copy or image of the Item, in which case the Drawee
Institution/Delegated Non-drawee Issuer must endeavour to obtain a replacement Item from
the Drawer.
Last amended
effective 22/01/09
Rejected Electronic Dishonour Record

6.3
The Drawee Institution (or its relevant Tier 1A Clearing Representative) must, on the next
business day following transmission of a rejected electronic dishonour record, determine
whether notification of the fate of the Item is required. Where notification is required, the
Drawee Institution (or its relevant Tier 1A Clearing Representative) must, before 12 noon
(Sydney time) on that day, contact the collecting Institution (or its relevant Tier 1A Clearing
Representative) by telephone to advise the fate of the Item and to agree on corrective action.
6.4
The collecting Institution (or its relevant Tier 1A Clearing Representative) must, on receipt of a
telephone request, agree to either dispatch a credit voucher to the Drawee Institution or accept a
drawing from the Drawee Institution (or its relevant Tier 1A Clearing Representative) for the
value of the dishonoured Item.
6.5
The Drawee Institution (or its relevant Tier 1A Clearing Representative) must, by 12 noon
(Sydney time) on the business day agreement is reached, send a facsimile advice to the
collecting Institution (or its relevant Tier 1A Clearing Representative) confirming the corrective
action. The facsimile advice will show full details of the dishonoured Item including:
Last amended
effective 22/01/09
Last amended
effective 22/01/09
the electronic presentment record transmission date and transaction identifier;

the date of dishonour and the return transaction identifier;
trace information (consisting of capture device identifier, account number of depositors
nominated account, and the depositors nominated FI BSB); and
the dishonour return code and reason for dishonour.

S11.24
[ABN 12 055 136 519]


6.6
The collecting Institution (or its relevant Tier 1A Clearing Representative) will accept the
facsimile advice from the Drawee Institution (or its relevant Tier 1A Clearing Representative) as
notice of the dishonour.
Rejected Voucher Required Record

6.7
The Drawee Institution (or its relevant Tier 1A Clearing Representative) must, on the next
business day following transmission of a rejected voucher required record, determine whether
notification of the voucher required message is required. Where notification is required, the
Drawee Institution (or its relevant Tier 1A Clearing Representative) must, before 12 noon
(Sydney time) on that day, send a facsimile advice to the collecting Institution (or its relevant
Tier 1A Clearing Representative) advising that the voucher is required to be exhibited. The
facsimile advice will show full details of the Item including:
Last amended
effective 22/01/09

the voucher required by date and the voucher required transaction identifier; and
trace information (consisting of capture device identifier, account number of depositors
nominated account, and the depositors nominated FI BSB).
6.8
The collecting Institution (or its relevant Tier 1A Clearing Representative) will accept the
facsimile advice from the Drawee Institution (or its relevant Tier 1A Clearing Representative) as
notification of delay for the purposes of Rule 2.7(d) and must not refuse any subsequent
electronic dishonour or Item not yet to hand return message on the grounds it is unmatched or
is out-of-time (see Rule 3.7).
Last amended
effective 30/9/99
Rejected Electronic Dishonour Refusal Record

6.9
The collecting Institution (or its relevant Tier 1A Clearing Representative) must, on the next
business day following transmission of a rejected electronic dishonour refusal record, determine
whether notification of the electronic dishonour refusal is required. Where notification is
required, the collecting Institution (or its relevant Tier 1A Clearing Representative) must, before
12 noon (Sydney time) on that day, contact the Drawee Institution (or its relevant Tier 1A
Clearing Representative) by telephone to advise the fate of the Item and to agree on corrective
action.
6.10
The Drawee Institution (or its relevant Tier 1A Clearing Representative) must, on receipt of a
telephone request, agree to either dispatch a credit voucher to, or receive a drawing voucher
from, the collecting Institution (or its relevant Tier 1A Clearing Representative) for the value of
the dishonour refusal.
6.11
The collecting Institution (or its relevant Tier 1A Clearing Representative) must, by 12 noon
(Sydney time) on the business day agreement is reached, send a facsimile advice to the Drawee
Institution (or its relevant Tier 1A Clearing Representative) confirming the corrective action.
The facsimile advice will show full details of the dishonoured refusal Item including:
Last amended
effective 22/01/09
Last amended
effective 22/01/09

the date of dishonour and the return transaction identifier; and
the date of refusal and the refusal transaction identifier.
6.12
The Drawee Institution (or its relevant Tier 1A Clearing Representative) will accept the
facsimile advice as notification of the dishonour refusal.

S11.25
[ABN 12 055 136 519]


7.
HOLIDAY CALENDAR
Business Days
7.1
The holiday calendar is used by Institutions to indicate that a particular day is not a business day
for the purposes of electronic dishonours and voucher required decisions (specifically Rules 2.7,
2.8 and 2.9) and special answer requests (specifically Schedule 10 Rules 2.1.4.2 and 2.1.4.3).
Last amended
effective 27/09/07
Holiday Calendar
7.2
Drawee Institutions will use the holiday calendar to signal days on which the branch/centre
which is to make the payment/dishonour decision on a Cheque is on holiday, thereby signalling
that an electronic dishonour, return message or response to a special answer request may be
legitimately delayed.
Last amended
effective 27/09/07
Collecting Institutions will use the holiday calendar to determine when:
7.3
an electronic dishonour, return message or response to a special answer request should be

received from a Drawee Institution; and
when an electronic dishonour or return message may be refused as out of time by sending
an electronic dishonour refusal.
The holiday calendar will contain holiday dates by Drawee Institution by State/Territory, using
the first three digits of the BSB Number. Only Tier 1A Participating Members and Appointors
participating in approved Representation Arrangements as described in Schedule 8 will be
included in the holiday calendar.
Last amended
effective 25/7/08
Last amended
effective 25/7/08
Publication
7.4
The holiday calendar (and any revised editions) are published from time to time as determined
by the Management Committee in accordance with this Rule 7. The effective date for each
years holiday calendar (and any revised edition) will be advised to Participating Members.
There will only be one effective holiday calendar at any one time. The form of the holiday
calendar is described in Appendix J.
Last amended
effective 17/6/99
Responsibility
7.5
The Company will provide, each October, a draft of the following years holiday calendar to all
Tier 1A Participating Members showing, for the following year, each holiday recorded on the
holiday calendar and the BSB Numbers on holiday for those holiday dates.
Last amended
effective 17/6/99
Tier 1A Participating Members must notify the Company within two weeks of receipt of the
draft holiday calendar of any changes to its holiday dates, or to the holiday dates of its
Appointors.
Inserted
effective 17/6/99
The draft holiday calendar (incorporating all changes notified to the Company in accordance
with the preceding paragraph) will be provided to the Management Committee for approval
before it is issued in accordance with Rule 7.8.
Inserted
effective 17/6/99

S11.26
[ABN 12 055 136 519]


Adjustments to Holiday Calendar
7.6
Any adjustments to a holiday calendar after it has been issued must be approved by the
Management Committee. Any changes requested must be provided to the Company with
sufficient lead time for approval to be given by the Management Committee and for the revised
edition of the holiday calendar to be distributed to Participating Members in line with the
requirement in Rule 7.8 below.
Inserted
effective 17/6/99
Effective Date of the Holiday Calendar

7.7
The effective date of each years holiday calendar and any revised editions will be:
(i)
where the earliest holiday changed in that holiday calendar or revised edition (as the case
may be) involves information changes only (that is, no date change) or is a new holiday
the date of that holiday; or
(ii)
where the earliest holiday changed in that holiday calendar or revised edition (as the case
may be) is deleted the original date of that holiday (before it was changed).
Inserted
effective 17/6/99
7.8
The Company will issue each years holiday calendar to Participating Members no later than 30
November of the previous year or at least four weeks prior to the effective date of that holiday
calendar, whichever is earlier. The Company will issue any revised edition of a holiday calendar
to Participating Members at least four weeks prior to the effective date of that edition.
Inserted
effective 17/6/99
CAPTURE VALIDATION RULES DATABASE
Inserted effective
9/12/2009
Database Management and Purposes

8.1
Capture Validation Rules are a set of rules, provided by Drawee Institutions that specify the capture
requirements for Debit Items that capturing Institutions will apply for the purposes of the electronic
capture of the Items for electronic presentment;
The Capture Validation Rules may contain check digit validation routines which must be used by
capturing Institutions during the capture process to validate the specified fields in the MICR
codeline of Debit Items;
The Company manages a central database which holds current versions of the Capture Validation
Rules for all Tier 1A Participating Members and Appointors and makes available these rules to Tier
1A Participating Members for viewing and updating, and to Appointors for viewing only.
Inserted effective
9/12/2009
Sending Capture Validation Rules to the Company

8.2
It is mandatory for each Tier 1A Participating Member to have a current version of its Capture
Validation Rules and those of its Appointors lodged with the Company for inclusion in the
Companys Capture Validation Rules database.
8.3
Capture Validation Rules must be sent to the Company electronically in rich text format
accompanied by the Capture Validation Rules Lodgement Form (set out in Appendix S), available
on the Companys extranet, and clearly display the senders details, version number and creation
date of the rules.

S11.27
[ABN 12 055 136 519]


Inserted effective
9/12/2009
Distribution of Capture Validation Rules

8.4
The Company will notify Tier 1A Participating Members of the availability of the Capture
Validation Rules via an email broadcast message;
The broadcast message will contain a link to the Companys extranet and requires a secure logon to
enable the Tier 1A Participating Member to download the Capture Validation Rules;
Capture Validation Rules will be updated on Membership Change Dates and an Operational
Memorandum will be issued to Tier 1A Participating Members 2 months before each Membership
Change Date.
Inserted effective
9/12/2009
Updating Capture Validation Rules

8.5
Where a Tier 1A Participating Member or its Appointor amends its Capture Validation Rules, the
Tier 1A Participating Member must notify the Company immediately by completing a Capture
Validation Rules Lodgement Form (set out in Appendix S) available on the Companys extranet;
The form must include a copy of the new Capture Validation Rules as an attachment in rich text
format;
Where a Tier 1A Participating Member or its Appointor requires its Capture Validation Rules to be
updated and made available to other Tier 1A Participating Members on a date other than a
Membership Change Date and/or, due to the submission of incorrect Capture Validation Rules, an
operational change fee will apply in accordance with Regulation 6.8;
In this case, , the Tier 1A Participating Member must give the Company a least 2 months notice of
the change to its Capture Validation Rules. Upon receipt of such notice, the Company must notify
all Tier 1A Participating Members by Operational Memorandum and update the Capture Validation
Rules database and make available the updated rules to Tier 1A Participating Members;
A Tier 1B or Tier 2 Participating Member must notify its Tier 1A Participating Member of any
changes to its Capture Validation Rules.
The next page is A.1
Appendix A is Confidential

S11.28
[ABN 12 055 136 519]


Appendix A Inter-Institution Vouchers
Appendix A and
vouchers A1 to A11
inserted, effective
20/10/99
Confidential
Appendix A
Full compliance with the new voucher designs in Appendix A
must be achieved by 1 May 2000
INTER-INSTITUTION VOUCHERS
Confidential
Appendix A contains specimens for various Inter-Institution vouchers used in the paper clearing system.
The formatting of the vouchers, relativities of size and positioning of data within the vouchers must be
substantially in the form as outlined in this Appendix A. However, Institutions may vary certain aspects of
the vouchers such as font, lines, etc. in line with their own corporate graphic design requirements. Where
appropriate, the exact location of the address panel (within the overall address area) may be varied to suit
Institutions own window faced envelopes.
A1
Warrant
(Debit)
A2
(Debit)
A3
(Credit)
A4
(Debit)
A5
(Credit)
A6
Drawing Debit
(Debit)
A7
Credit Transfer
(Credit)
A8
Error Adjustment Voucher
(Debit)
A9
(Credit)
A10
Batch Header
(Debit)
A11
Batch Header
(Credit)
Specifications for Vouchers (A1 to A9)

Vouchers shown at A1 to A9 must comply with the following specifications when producing them for use:
Maximum length and height
Minimum length and height
210mm x 93mm (8.25 x 3.66)

195mm x 85mm (7.75 x 3.25)
Colour Debits
z
Red ink on white paper, or
z
Black ink on red tinted paper
Colour Credits
z
Black or blue ink on white paper, or
z
Black ink on blue tinted paper

A.1
[ABN 12 055 136 519]


Appendix A Inter-Institution Vouchers
Appendix A and
vouchers A1 to A11
inserted, effective
20/10/99
Confidential
The following features in particular must conform to the APCA Publication Design Specifications for
Cheques and Deposit Forms:
Last amended
effective 25/7/08
Colour
Paper
$ Sign
Field Guide
Sending Institution must insert its name and domicile and ACN, ARBN or ABN in the From area, its
logo being optional.
Sending Institutions may authorise the vouchers according to their own internal requirements. For
example, Institutions may provide only one signature, or initial, if they so wish. Receiving Institutions
must not refuse any vouchers because of this.
Specifications for Batch Headers (A10 and A11)
The following specifications must be used by Institutions for Standard Batch Value Documents:
Size:
length and height 165mm x 89mm (6.5 x 3.5)
Colour:
Debits - Red ink on white paper
Colour:
Credits - Blue ink on white paper
A deep band of red (in the case of debits) or blue (in the case of credits) must appear across the head of the
document.
A field guide for the Amount in Figures must be positioned to the right of the $ sign and is to comply
with the specifications contained in Appendix C of the APCA Publication Design Specifications for
Cheques and Deposit Forms:
Last amended
effective 25/7/08
Codeline:
Serial Field:
This must consist of four digits with the documents being sequentially numbered
from 0001 through 9999. The closing symbol must be in position 42-43.
Maximum distance of this symbol from the leading edge must be 142mm (5
9/16) plus or minus 2mm (1/16) with a minimum distance of 138mm (5 7/16)
plus or minus 2mm (1/16).
BSB Field:
Standard format 3 3 and must be the BSB Number of the source of the batch.
Account No.
Eight digits without any hyphens

Debits
00000011
Credits 00000059
Transaction Code
Debits
Credits
11
59

A.2
[ABN 12 055 136 519]

To
[Branch]
From [Name of Financial Institution]
Warrant
Authorisation
BSB
Details
Date
DEBIT
Appendix A1 Warrant
refer Schedule 10, Rules 2.1.4.3, 2.2.3.1.4, 2.2.10.2 and 3.1 and
Schedule 11, Rules 2.10.1 and 2.10.4
Confidential

A.3
[ABN 12 055 136 519]

Account number
BSB number
Stamp No. & Date

or Trace Details
Answer
Payee
BSB
Drawer
Aux dom
Ex aux dom
To
[Branch]
Date
Authorised
Authorisation
Receiving Office Use
Date
TC
DEBIT
Appendix A2 Drawing for Dishonoured Item Returned Direct

refer Schedule 10, Rules 2.2.3, 2.2.5, 2.2.6, 2.2.8 and 2.2.10
Confidential

A.4
[ABN 12 055 136 519]

Account number
Stamp No. & Date

or Trace Details
Answer
BSB number
BSB
Payee
Drawer
Aux dom
Ex aux dom
To
[Branch]
Date
Authorised
Authorisation
Date
TC
CREDIT
Appendix A3 Advice of Dishonoured Item Returned Direct

refer Schedule 10, Rules 2.2.3, 2.2.5, 2.2.8 and 2.2.10
Confidential

A.5
[ABN 12 055 136 519]


Last amended
effective 30/10/02
BSB number
Account number
Aux dom
Ex aux dom
To
[Branch]
Authorisation
BSB
Details
Authorised
Date
Date
TC
DEBIT
Appendix A4 Drawing for Direct Remittance

refer Schedule 10, Rules 1.3.1, 2.1.4.2, 2.1.5.1, 2.1.5.2 and 4.2.2
Confidential

A.6
[ABN 12 055 136 519]

Aux dom
Ex aux dom
To
[Branch]
Authorisation
BSB number
Account number
$
BSB
Details
Authorised
Date
Date
TC
CREDIT
Appendix A5 Advice of Direct Remittance

refer Schedule 10, Rules 1.3.1, 2.1.4.2 and 2.1.5.1
Confidential

A.7
[ABN 12 055 136 519]

Account number
Ex aux dom
Debit
Authorisation
Authorisation
Aux dom
]
[Branch
Date
recd

Receiver
use only
To
(Branch/Other financial institution and branch)
Drawing Debit
Details
BSB number
BSB
Date
TC
DEBIT
Appendix A6 Drawing Debit

refer Schedule 10, Rules 1.3.6(b) and 2.1.12
Confidential

A.8
[ABN 12 055 136 519]


Last amended
effective 30/10/02
Account number
Ex aux dom
Credit
Authorisation
Authorisation
Aux dom
]
[Branch
Date
recd
Receiver
use only
To
Credit Transfer
Details
BSB number
BSB
Date
TC
CREDIT
Appendix A7 Credit Transfer

refer Schedule 10, Rules 1.3.1 and 4.2.2
Confidential

A.9
[ABN 12 055 136 519]

Authorisation
Authorisation
A.10
Ex aux dom
Credit
[Branch
Aux dom
Date
recd
Receiver
use only
To
Date
Listed as
$
Payee
Surplus
item
Domicile
Branch:
Missing
item
Date of Tape
Account number
Presented by/Missing Item Codeline Details
Drawer
BSB number
Bank:
Item for
$
Exchange No.
BSB
Branch
and $
Located on Tape/Schedule between
Capture Trans No.
DEBIT
TC
Trace No./Stamp or Machine Endorsement
On (Bank)
Incorrectly
adjusted
Batch Total
Date
Appendix A8 Error Adjustment Voucher (Debit)

refer Schedule 4, Rules 4.1(b) and 4.1(c) and Schedule 10, Rule 3.5
Confidential
[ABN 12 055 136 519]

Authorisation
Authorisation
A.11
Ex aux dom
Credit
[Branch
Aux dom
Date
recd
Receiver
use only
To
Date
Listed as
$
Payee
Surplus
item
Domicile
Branch:
Missing
item
Date of Tape
Account number
Presented by/Missing Item Codeline Details
Drawer
BSB number
Bank:
Item for
$
Exchange No.
BSB
Branch
and $
Located on Tape/Schedule between
Capture Trans No.
TC
Trace No./Stamp or Machine Endorsement
On (Bank)
Incorrectly
adjusted
Batch Total
Date
CREDIT
Appendix A9 Error Adjustment Voucher (Credit)

refer Schedule 4, Rules 4.1(b) and 4.1(c) and Schedule 10, Rule 3.5
Confidential
[ABN 12 055 136 519]

Exchange Date
Including ACN/ARBN
[Full Name of Sending Institution]
BATCH HEADER
DEBIT
Appendix A10 Batch Header (Debit)

refer Schedule 4, Rules 3.6(b) and 3.6(d)
Confidential

A.12
[ABN 12 055 136 519]

Exchange Date
Including ACN/ARBN
BATCH HEADER
CREDIT
Appendix A11 Batch Header (Credit)

refer Schedule 4, Rules 3.6(b) and 3.6(d)
Confidential
The next page is B.1

Appendix B is Confidential

A.13
[ABN 12 055 136 519]


Appendix B - Transaction Codes
Confidential
Appendix B - TRANSACTION CODES
Confidential
Transaction Codes are up to three digits and when printed on a paper voucher appear in a three-character
field immediately to the left of the Amount field. They may be pre-printed, or encoded on the voucher
during processing. Voucher codeline specifications are set out in the APCA Publication Magnetic Ink
Character Recognition (MICR) Technical Specifications and the encoding responsibilities of Institutions
are set out in Schedule 4.
Last amended
effective 25/7/08
In the range Blank or 00 to 99, Blank or 00 to 49 denote debits and 50 to 99 denote credits, and similarly in
the range 900 to 999, 900 to 949 denote debits and 950 to 999 denote credits.
The following specific numbers have been allocated for the purposes shown. Remaining numbers in the
two-digit range and all three-digit numbers up to 899 are presently available for Institutions' internal use.
However, financial institutions should be aware that in the future, numbers in the range 800 to 899 may be
reserved for inter-Institution use as the needs arise. All numbers in the range 900 to 999 are reserved for
inter-Institution use.
Last amended
effective 30/10/02
Blank
Cheque bearing a 6 digit Auxiliary Domestic (Serial No.) field
Used by Bankcard Departments for identification of Merchant's Service Charge.
Cheque bearing a 7 to 9 digit Auxiliary Domestic (Serial No.) field.
10
Truncatable Item, without amount restriction.
11
Debit-Standard Batch Value documents.
12
Debit remittances between Institutions.

Preprinted Serial Number and Transaction Code fields, if not MICR-encoded, must be placed
above the clear band.
13
Reserved for inter-Institution use.
50
All externally-initiated Credit Items with the exception of those bearing Transaction Codes 51 to
60 inclusive.
51
Australian Government Security Interest
52
Basic Family Payment/Additional Family Payment
53
Pay
54
Pension
55
Allotment
56
Dividend
57
Debenture/Note Interest
58
Credit transfer between Institutions.

Preprinted Serial Number and Transaction Code fields, if not MICR-encoded, must be placed
above the clear band.

B.1
Last amended
effective 3/6/02
Last amended
effective 30/10/02
[ABN 12 055 136 519]

Amendment No. E039issued as CS1/r&p/004.08

Confidential
59
Credit-standard batch value documents.
60
Credit Items bearing a 6 digit number in the Extra Auxiliary Domestic field.
69
Credit Items bearing a 7 to 11 digit number in the Extra Auxiliary Domestic field.
71
Non-specific internal/external Credit Items.

Institutions may use this Transaction Code to facilitate special internal processing.
Last amended
effective 3/3/97
All other codes between 00 and 899 are available for Institutions' own internal use.
(Note: Numbers in the range 800 to 899 may in the future be reserved for inter-Institution use.)
Last amended
effective 3/6/02
900
Cheque bearing 6 digit Serial Number. To be repatriated.
Last amended
effective 30/10/02
901 to 908
Reserved for inter-Institution use
909
Cheque bearing 7 to 9 digit Serial Number. To be repatriated.
910
Contra Debit Items lodged by Tier 1 Appointors with their outward Credit Items
911
Debit-Standard 'Not-For-Value' Batch Header document. To be repatriated.
912
Debit remittances between Institutions. To be repatriated. Preprinted Serial Number

and Transaction Code fields, if not MICR-encoded, must be placed above the clear
band.
913 to 949
950
Deposit - no Extra Auxiliary Domestic Field present. To be repatriated.
951 to 957
Reserved for inter-Institution use.
958
Credit transfer between Institutions. To be repatriated.

Preprinted Serial Number and Transaction Code fields, if not MICR-encoded, must be
placed above the clear band.
959
Credit-Standard 'Not-For-Value' Batch Header document. To be repatriated.
960
Credit Transfer Item bearing a 6 digit Extra Auxiliary Domestic field.

repatriated.
961 to 968
969
Credit Transfer Item bearing a 7 to 11 digit number in the Extra Auxiliary Domestic
field. To be repatriated.
970
971
Non-specific internal/external Credit Items. Institutions may use this Transaction Code
to facilitate special internal processing. To be repatriated.
972 to 983

B.2
Last amended
effective 30/10/02
To be
Last amended
effective 3/3/97
[ABN 12 055 136 519]


Confidential
984
Cardholder Statement - Payment Advice
985 to 989
990
Contra Credit Items lodged by Tier 1 Appointors with their outward Debit Items
991 to 999
The next page is C1.1

Appendix C is Confidential

B.3
[ABN 12 055 136 519]

Inserted
effective 21/4/97
Appendix C1 - Special Answer Facsimile Request Form

Confidential
Appendix C Special Answer Facsimile Request Form
Confidential
[Sending FIs Logo - Optional]
SPECIAL ANSWER FACSIMILE REQUEST
DATE SENT:
Special Answer Number:
URGENT AND CONFIDENTIAL COMMUNICATION: This facsimile is both URGENT and CONFIDENTIAL and is
intended only for the use of the addressee. If you have received this communication in error, please notify the financial
institution from which you received it, at the telephone number specified in the next section, to arrange disposal.
Unauthorised use of any information in this message may result in legal proceedings against the user. Thank you.
From:
[Full Name and ACN/ABN/ARBN]

[Address]
Fax No.:
Telephone No.:
Contact Officers
Full Name (print):..
Request No.
To:
[Paying FI]
[Branch]
Drawer:
of
Fax No.:
Date Item Processed:
Serial Number:
BSB No.:
Account No.:
Paying FIs Full Name and ACN/ABN/ARBN:

REPLY
From:
Date Sent:
Branch Stamp (Optional)
The ANSWER on the above item is:
[ ] PAID
[ ] DEFERRED - VOUCHER REQUIRED
[ ] NOT PAID - REASON:
ADDITIONAL
DETAILS:
(If necessary)
Reply No.
of
Telephone No.:
Replying Officers
[Copy of Item - Optional]
Notes:
1.
If two or more requests are sent in separate forms but in the same facsimile transmission, the relative
Request No. .. of . box must be completed to show the sequential number of each form sent in the
same transmission and the total number of forms sent in that transmission. (For example, for the second
form sent in a transmission of ten forms, the box should be completed to be Request No. 2 of 10).

C1.1
[ABN 12 055 136 519]

Inserted
effective 21/4/97

Confidential
2.
If two or more requests from the same point are answered in separate forms but in the same facsimile
transmission, the relative Reply No. .. of . box must be completed to show the sequential number of
each form sent in the same transmission and the total number of forms sent in that transmission. (For
example, for the second form sent in a transmission of ten forms, the box should be completed to be Reply
No. 2 of 10)

C1.2
[ABN 12 055 136 519]


Electronic Version
Last Amended
effective 9/12/2009
Confidential
SPECIAL ANSWER E-MAIL REQUEST

Date Sent:
URGENT AND CONFIDENTIAL COMMUNICATION: This message is both URGENT and CONFIDENTIAL and is intended only for the use of the
addressee. If you have received this message in error, please notify the financial institution from which you received it, at the telephone number given, to
arrange disposal. Unauthorised use of the information in this message may result in legal proceedings against the user. Thank you.
FROM: [Insert full name and ACN/ABN/ARBN of Requesting Institution]
Requesting Institution:
ACN/ABN/ARBN:
Contact Officer (full name):
e-mail Address:
Phone Number:
( )
TO: [Insert full name of Paying Financial Institution]
Paying Financial Institution:

Branch:
e-mail Address:
Item Details:
Drawer:
Date Item Processed:
Serial Number:
BSB:
Account Number:
Amount:
REPLY
Date sent:
Name of Paying Institution:

ACN/ABN/ARBN:
The ANSWER on the above
Items is:
PAID/DEFERRED-Voucher Required/NOT PAID - Reason

If response is NOT PAID, insert Reason:
Additional Details (if

necessary):
Replying Officers full name:
e-mail Address:
Copy of Item (optional)

C1.3
[ABN 12 055 136 519]

Last amended
effective
9/12/2009
Appendix C2 - Trace Request Form

Confidential
TRACE REQUEST
URGENT
ROUTINE
Date sent ..Requesting Institution Ref No

CONFIDENTIAL COMMUNICATION: This facsimile is confidential and intended only for the use of the addressee. If you have
received this communication in error, please notify the financial institution from which you received it, at the telephone number
given, to arrange disposal. Unauthorised use of the information in this message may result in legal proceedings against the user.
Thank you.
No. of requests included in this transmission.

No.
of
From
[Full Name and ACN/ABN/ARBN of Requesting FI]
Contact Officer (full name)
Fax No.
Telephone No
To .
(Responding Institution)
Fax No...
Purpose of Trace Requested

For a Participating Member
(minimum value of Items is $35)
For a customer
Type of Trace Requested

Origin Trace (full details)
Final Destination Trace
Encoding Errors
Amount $ Debit/Credit (delete one)
Other Information ..
.
Exchange Details
Value exchanged FROM/TO (delete one) you on ..
Paper Exchange
Machine & Trace No ...
Listed between $.. and $..
Batch Total.
Exchange Total.
Date ...
[Date]
Electronic Exchange
Collecting BSB
Capture BSB
Transaction Identifier
Capture Device Identifier..
Origin
BSB/Account ...
Account Name (Drawer)
Serial/Ref.No..
Payee [cheque only]...
Final Destination
BSB..
Branch..
Full Account Name...

Trace Completed by...
(Replying Institutions Full Name and ACN/ABN/ARBN)
Replying Officers Full Name (print).
No. of replies included in this transmission.
Telephone
Trace Ref..
No.
of
[ABN 12 055 136 519]

C2.1

Electronic Version
Last Amended
effective 9/12/2009
Confidential
TRACE REQUEST
ROUTINE/URGENT
Requesting Institution Reference Number:
Date Sent:
CONFIDENTIAL COMMUNICATION: This message is confidential and intended only for the use of the addressee. If you have received this message in
error, please notify the financial institution from which you received it, at the telephone number given, to arrange disposal. Unauthorised use of the
information in this message may result in legal proceedings against the user. Thank you.

ACN/ABN/ARBN:
e-mail Address:
Phone Number:
TO: [Insert full name of Responding Institution]

Responding Institution:
e-mail Address:
Purpose of Trace Requested:
For a Participating Member (minimum value of Items is $35)/

For a customer
Type of Trace Requested:
Origin Trace (full details)/Final Destination Trace/Encoding Errors
Amount ($):
Credit/Debit
Other Information:
Exchange Details:
Value exchanged FROM YOU/TO YOU on
Paper Exchange/Electronic Exchange
Machine & Trace Number:

Listed between:
$
$
$
Batch Total:
Exchange Total:
and $
Date:
Collecting BSB:
Capture BSB:
Transaction Identifier:
Capture Device Identifier:
Origin
BSB/Account Number:
Account Name (Drawer):

Serial/Reference Number:
Payee (cheque only):

C2.2
[ABN 12 055 136 519]


Electronic Version
Last Amended
effective 9/12/2009
Confidential
Final Destination
BSB:
Branch:
Full Account Name:
TRACE COMPLETED BY: [Replying Institutions

Replying Institution:
full name and ACN/ABN/ARBN]
ACN/ABN/ARBN:
Name:

e-mail address:
Trace Reference

C2.3
[ABN 12 055 136 519]

Inserted
effective 30/3/98

Appendix C3 - Not-For-Value Batch Header - Debit
Last amended
effective 30/10/02
Confidential
NOT-FOR-VALUE BATCH HEADER
DEBIT

Including, ACN/ABN/ARBN
CAPTURED VOUCHERS
Do Not Process for Value
To: (Receiving Institution)
Transmission Date
Note:
The Not-for-Value Batch Header - Debit is to comply with the following specifications and layout is to be
substantially in the format as shown above:
Size:
165mm x 89mm.
Colour:
Background: Yellow.
Printing:
Red.
In addition, the document must display:

*
*
The full name of the Sending Institution, including ACN/ARBN/ABN (logo optional).
The name of the Receiving Institution.
The date value was exchanged (Transmission Date).

C3.1
[ABN 12 055 136 519]

Inserted
effective 1/7/98
Appendix C4 - Electronic Dishonour Mailing Advice

Confidential
Note:
The Electronic Dishonour Mailing Advice is shown as an example and the following specifications are to
be followed when producing the document for use.
Maximum Size:
210mm x 99mm
Colour:
Black on white.
Collecting Institution and Drawee Institution names (logo optional) are to be shown in full.
Transmission Date:
To be taken from Field No. 13 from the 1010 record.
Australian Payments Clearing Association Limited [ABN 12 055 136 519]

C4.1

Appendix C4 - Electronic Dishonour Mailing Advice
Last amended
effective 25/7/08
Confidential
ELECTRONIC DISHONOUR MAILING ADVICE

Transmission Date [1010]
Return Transaction
Date Dishonoured
[DD/MM/CCYY]
Serial Number
[DD/MM/CCYY]
BSB Number
Account Number
Amount
$
TO
[BSB Number]
Reason for
[Collecting Institution]
[Branch]
FROM
[Drawee Institution Name and ACN/ABN/ARBN]

[Branch]
NOT FOR VALUE
[BSB Number]
[ABN 12 055 136 519]

C4.2
Inserted,
effective 1/7/98.
Appendix C5 - Electronic Dishonour Refusal Mailing Advice

Confidential
Note:
The Electronic Dishonour Refusal Mailing Advice is shown as an example and the following specifications
are to be followed when producing the document for use.
Maximum Size:
210mm x 99mm
Colour:
Black on white.
Collecting Institution (logo optional) and Drawee Institution names are to be shown in full.
Transmission Date:
To be taken from Field No. 13 from the 1010 record.

C5.1

Appendix C5 - Electronic Dishonour Refusal Mailing Advice
Inserted,
effective 1/7/98.
Last amended
effective 30/10/02
Confidential
ELECTRONIC DISHONOUR REFUSAL MAILING ADVICE

Transmission Date [1010]
Return Transaction Identifier
Refusal Transaction Identifier
Date Refused
[DD/MM/CCYY]
Serial Number
[DD/MM/CCYY]
BSB Number
Amount
Account Number
$
TO
[BSB Number]
Reason for
[Drawee Institution]
[Branch]
FROM
[Collecting Institution Name and ACN/ABN/ARBN]

[Branch]
NOT FOR VALUE
[BSB Number]
[ABN 12 055 136 519]

C5.2

Appendix C6 - Presentment Request Rejected Technically Invalid Item
(Schedule 11 Rule 6.1)
Inserted,
effective 1/7/98
Amended
effective 10/10/05
Confidential
[Logo optional]
Presentment Request
Rejected Technically Invalid Item
Date Sent .
Requesting Institution Reference No..
URGENT AND CONFIDENTIAL COMMUNICATION: This facsimile is both URGENT and CONFIDENTIAL and is intended
only for the use of the addressee. If you have received this communication in error, please notify the financial institution from which
you received it immediately, at the telephone number given, to arrange disposal. Unauthorized use of any information in this message
may result in legal proceedings against the user. Thank you.
From:
Fax No. ..
Contact Officer: (print full name)

.
Telephone No. ..
Request No. ..of ...
To:
[Drawee FI]
[Branch]
Fax No.
The following Item was electronically presented to you and rejected Technically Invalid.
Item Exchange Details:
BSB Number
Drawer Account Number
Amount $
Serial
Number
(if
available)
Date of Voucher Exchange
Region
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
Attach a copy or image of the Item (if available)

It would be appreciated if you could locate and effect presentment of the Item or, if provided, effect
presentment from the copy or image of the Item, and if paid, please quote our Reference No. (above) and remit
value to:
BSB Number_______ - ________
Reply:
Account Number _____________________________

Date Sent:
From: [Full Name and ACN/ABN/ARBN of Drawee FI]

Reply No. ..of ..
Branch Stamp
The ANSWER on the above Item is:
(Optional)
PAID Value being remitted
NOT PAID: Answer .
ITEM NOT YET TO HAND. REPLACEMENT ITEM BEING SOUGHT
Additional Details
(if necessary):
Replying Officers
(print full name):
..

C6.1
Signature:
.
[ABN 12 055 136 519]


Electronic Version
Appendix C6 - Presentment Request Rejected Technically Invalid Item
(Schedule 11 Rule 6.1)
Amended
effective 1010/05
Confidential
PRESENTMENT REQUEST REJECTED TECHNICALLY INVALID ITEM

Date Sent:
CONFIDENTIAL COMMUNICATION: This message is confidential and intended only for the use of the addressee. If you have received this message
in error, please notify the financial institution from which you received it, at the telephone number given, to arrange disposal. Unauthorised use of the

ACN/ABN/ARBN:
e-mail Address:
Phone Number:
TO: [Insert full name of Drawee Institution]

Branch:
e-mail Address:
The following Item electronically presented to you and rejected Technically Invalid.
Item Exchange Details:
BSB Number:
Drawer Account Number:

Amount:
Serial Number (if available):

Transaction Identifier:
Date of Voucher Exchange:
Region:

presentment from the copy or image of the Item, and if paid, please quote our Reference No. (above) and
remit value to:
BSB Number:
Account Number:
REPLY
Date sent:
Name of Drawee Institution:

ACN/ABN/ARBN:
Items is:
PAID Value being remitted/NOT PAID Answer/ITEM NOT YET TO

HAND. REPLACEMENT ITEM BEING SOUGHT
If response is NOT PAID, insert Answer:
Additional Details (if necessary):

e-mail Address:

C6.2
[ABN 12 055 136 519]


Appendix C7 Advice of Suspected Counterfeit Cheque
(Schedule 10, Rule 4.2.2)
Last amended
effective 19/07/04
Confidential
ADVICE OF SUSPECTED COUNTERFEIT CHEQUE
URGENT
Collecting Institution Reference No .

[Name of Collecting FI, including ACN/ABN/ARBN]
From
Date
Fax No.
To
Contact Officer
Tel No.
[Name of Drawee FI]
Fax No.
During Proof processing, the undermentioned Item was brought to our attention and we recommend
that you verify its authenticity:
Reason why Item is suspect:
Details of Item:
Extra Aux Dom
Drawer
Serial Number
BSB Number
Account Number
Amount
Attach a copy or image of the Item
intended only for the use of the addressee. If you have received this communication in error, please notify the financial institution
from which you received it immediately, at the telephone number given, to arrange disposal. Unauthorised use of any information
in this message may result in legal proceedings against the user. Thank you.
REPLY FROM: |_____________________________________________ Date:|_____________

[Name of Drawee FI, including ACN/ABN/ARBN]
|__________________________________
|______________________ |_____________
[Replying Officers Full Name]
[Signature]
[Tel. No.]
Item has been checked and:

Is in Order/Genuine
or will be dishonoured with the answer:

Not authorised
(Other)

C7.1
[ABN 12 055 136 519]


Electronic Version
Appendix C7 Advice of Suspected Counterfeit Cheque
Last amended
effective 12/07/04
Confidential
ADVICE OF SUSPECTED COUNTERFEIT CHEQUE

URGENT
Collecting Institution Reference No ..
URGENT AND CONFIDENTIAL COMMUNICATION: This message is both URGENT and CONFIDENTIAL and is intended only for the use of the
addressee. If you have received this message in error, please notify the financial institution from which you received it, at the telephone number given, to
arrange disposal. Unauthorised use of the information in this message may result in legal proceedings against the user. Thank you.
FROM: [Insert full name and ACN/ABN/ARBN of Collecting Institution]

Collecting Institution:
ACN/ABN/ARBN:
e-mail Address:
Phone Number:
TO: [Insert full name of Drawee Financial Institution]

Paying Financial Institution:
e-mail Address:
During Proof processing, the undermentioned Item was brought to our attention and we recommend that you
verify its authenticity.
Reason why Item is suspect:
Details of Item
Drawer:
Extra Aux Dom:
Serial Number:
BSB:
Account Number:
Amount:
Attach a copy of image of the Item
Date sent:
REPLY FROM
Name of Drawee Institution:
ACN/ABN/ARBN:
e-mail Address:
Item has been checked and:
Is in Order-Genuine/Will be returned with the answer

Not applicable/Not authorised/Forged or counterfeit instrument/Other (see
notes below)
(where response if Other)

C7.2
[ABN 12 055 136 519]


Appendix C8 Third Party Cheque Conversion Request for Investigation/Claim
Amended
effective 18/4/05
Confidential
[Sending FIs Logo Optional]
THIRD PARTY CHEQUE CONVERSION REQUEST FOR INVESTIGATION/CLAIM*
DATE SENT:
REQUESTING INSTITUTION REFERENCE NO.:
CONFIDENTIAL COMMUNICATION: This facsimile is CONFIDENTIAL and is intended only for the use of the addressee. If you have received this
communication in error, please notify the financial institution from which you received it, at the telephone number specified in the next section, to arrange
disposal. Unauthorised use of any information in this message may result in legal proceedings against the user. Thank you.
From: [Full Name & ACN/ABN/ARBN]

[Address]
Contact Officers
Full Name (print):
Fax No.:
Telephone No.:
To: [FI name] [Branch]
Fax No.:
Signature:
Message:
We have received a query/claim* from (a customer/other - specify) alleging that the intended payee of a
cheque has not received payment.
*We would appreciate your assistance in investigating this query. Please let us know as much as you can
about the circumstances in which this cheque was collected for your customer.
*We enclose a copy of the correspondence regarding the claim. We claim a refund from you in the amount of
$(amount of claim).
*We have sent a separate Trace Request in connection with this query/claim*, a copy of which is attached.
(*Delete the inapplicable word or paragraph)
We have the following information on the relevant cheque:
(Describe relevant circumstances and information available and legally able to be provided eg:
a copy of the cheque (front and back) (enclosed);
drawers name;
payees name;
amount of the cheque (in words and in figures);
cheque number;
the date on which the cheque was drawn;
the name of the drawee Institution (and the branch at which the cheque was domiciled);
the date on which the cheque was deposited for collection;
the name of the collecting Institution (and the branch at which the cheque was deposited for collection);
the date on which the cheque was paid;
details of relevant circumstances, for example:

-
how the cheque was lost (if applicable);

from whom the cheque was stolen (if applicable);
was fraud involved?
did the drawer act under a mistake?
had the cheque been crossed?
had the cheque been endorsed or otherwise negotiated?)

C8.1
[ABN 12 055 136 519]


Electronic Version
Inserted
effective 1/07/02
Confidential
THIRD PARTY CHEQUE CONVERSION:

REQUEST FOR INVESTIGATION/CLAIM
Date Sent:

ACN/ABN/ARBN:
e-mail Address:
Phone Number:
TO: [Insert full name of Responding Institution]

e-mail Address:
Message:
We have received a query/claim from a customer/other specify) alleging that the intended payee of a
cheque has not received payment. [We request your assistance as follows] please investigate (note 1)/we
claim a refund from you (note 2)/we have sent a Trace Request (note 3).
Note 1:
We would appreciate your assistance in investigating this claim/query. Please let us

know as much as you can about the circumstances in which this cheque was collected
or paid.
Note 2:
We enclose a copy of the correspondence regarding the claim. We claim a refund

from you in the amount of $
.
Note 3:
We have sent a separate Trace Request in connection with this query/claim, a copy of
which is attached.
We have the following information on the relevant cheque:

(Describe relevant circumstances and information available and legally able to be provided, for example:
A copy of the cheque enclosed (front and
back):
Yes/No
Drawers name:
Payees name:
Amount of the cheque:
In words:
In figures:
Cheque Number:
Date on which the cheque was drawn:
Name of the drawee Institution:

C8.2
[ABN 12 055 136 519]


Electronic Version
Inserted
effective 1/07/02
Confidential
Branch at which the cheque was domiciled:
Date on which the cheque was deposited for
collection:
Name of the collecting Institution:
Branch at which the cheque was deposited
for collection:
Date on which the cheque was paid:
Details of relevant circumstances.
For example:
How the cheque was lost (if applicable)
From whom the cheque was stolen (if

applicable)
Was fraud involved?
Did the drawer act under a mistake?
Had the cheque been crossed?
Has the cheque been endorsed or

otherwise negotiated?

C8.3
[ABN 12 055 136 519]


Appendix C9 Presentment Request Unprocessable Item
Amended
effective 10/10/05
Confidential
[Logo optional]
Presentment Request Unprocessable Item
Date Sent ...
Requesting Institution Reference No...
URGENT AND CONFIDENTIAL COMMUNICATION: This facsimile is both URGENT and CONFIDENTIAL and is intended only for
the use of the addressee. If you have received this communication in error, please notify the financial institution from which you received
it immediately, at the telephone number given, to arrange disposal. Unauthorized use of any information in this message may result in legal
proceedings against the user. Thank you.
Fax No. ..
From:

.
Telephone No. ..
To:
[Drawee FI]
[Branch]
Fax No.
A cheque, with details as shown below, was exchanged to you as a not-for-value Item on [insert date]
without an equivalent Electronic Presentment record.
Extra Aux Dom
Serial Number
BSB Number
Account Number
Amount
$
remit value to:
BSB Number_______ - ________
Reply:
Account Number _____________________________
Date Sent:

Reply No. ..of ..
Branch Stamp
(Optional)
NOT PAID: Answer .
ITEM NOT YET TO HAND. REPLACEMENT ITEM BEING SOUGHT.
Additional Details
(if necessary):
Replying Officers
(print full name):
..

C9.1
Signature:
[ABN 12 055 136 519]


Electronic Version
Appendix C9 Presentment Request Unprocessable Item
Amended
effective 10/10/05
Confidential
PRESENTMENT REQUEST UNPROCESSABLE ITEM

Requesting Institution Reference No.:
Date Sent:
FROM: [Insert full name and ACN/ABN/ARBN of Requesting FI]

Requesting FI:
ACN/ABN/ARBN:
e-mail Address:
Phone Number:
TO: [Insert full name of Drawee FI]

Drawee FI:
Branch:
e-mail Address:
A cheque, with details as shown below, was exchanged to you as a not for value Item on [insert date]
without an equivalent Electronic Presentment record.
Details of the cheque:

Extra Aux Dom:
Serial Number:
BSB Number:
Account Number:
Amount:
$
remit value to:
BSB Number:
Account Number:
REPLY
Date sent:
Name of Replying Drawee FI:

ACN/ABN/ARBN:
Items is:
PAID Value being remitted/NOT PAID Answer/ITEM NOT YET TO

HAND. REPLACEMENT ITEM BEING SOUGHT

e-mail Address:

C9.2
[ABN 12 055 136 519]


Appendix C10 Presentment Request Debit Item Lost in Transit
Amended
effective 10/10/05
Confidential
[Logo optional]
Presentment Request Debit Item Lost in Transit
Date Sent ...
Requesting Institution Reference No...
URGENT AND CONFIDENTIAL COMMUNICATION: This facsimile is both URGENT and CONFIDENTIAL and is intended
only for the use of the addressee. If you have received this communication in error, please notify the financial institution from
which you received it immediately, at the telephone number given, to arrange disposal. Unauthorized use of any information in this
message may result in legal proceedings against the user. Thank you.
Fax No. ..
From:

.
Telephone No. ..
To:
[Drawee FI]
[Branch]
Fax No.
A cheque, with details as shown below, was image captured on [insert date] but lost in transit.
Extra Aux Dom
Serial Number
BSB Number
Account Number
Amount
$
Attach a copy or image of the Item
It would be appreciated if you could now effect presentment of the Item from the copy or image provided,
and if paid, please quote our Reference No. (above) and remit value to:
BSB Number_______ - ________
Reply:
Account Number _____________________________
Date Sent:

Reply No. ..of ..
Branch Stamp
(Optional)
NOT PAID: Answer .
REPLACEMENT ITEM REQUIRED AND NOW BEING SOUGHT.
Additional Details
(if necessary):
Replying Officers
(print full name):
..

C10.1
Signature:
[ABN 12 055 136 519]


Electronic Version
Appendix C10 Presentment Request Debit Item Lost in Transit
Amended
effective 10/10/05
Confidential
PRESENTMENT REQUEST DEBIT ITEM LOST IN TRANSIT

Requesting Institution Reference No.:
Date Sent:
FROM: [Insert full name and ACN/ABN/ARBN of Requesting FI]

Requesting FI:
ACN/ABN/ARBN:
e-mail Address:
Phone Number:
TO: [Insert full name of Drawee FI]

Drawee FI:
Branch:
e-mail Address:
A cheque, with details as shown below, was image captured on [insert date] but lost in transit.
Details of the Cheque:

Extra Aux Dom:
Serial Number:
BSB Number:
Account Number:
Amount:
$
Attach a copy or image of the Item.
It would be appreciated if you could now effect presentment of the Item from the copy or image provided,
and if paid, please quote our Reference No. (above) and remit value to:
BSB Number:
Account Number:
REPLY
Date sent:
Name of Replying Drawee FI:

ACN/ABN/ARBN:
Items is:
PAID Value being remitted/NOT PAID Answer/REPLACEMENT

ITEM REQUIRED AND NOW BEING SOUGHT.

e-mail Address:

C10.2
[ABN 12 055 136 519]

Appendix C11 Notification of Encoding Error

Last amended
effective 24/01/05
Confidential
[Logo optional]
From:
NOTIFICATION OF ENCODING ERROR
Date:
[Name of Receiving or Presenting Member, including ACN/ARBN/ABN]
Fax No.:
Reference No.:
Contact Officer:
Telephone No.:
intended only for the use of the addressee. If you have received this communication in error, please notify the financial institution from
which you received it immediately to arrange disposal. Unauthorized use of any information in this message may result in legal proceedings
against the user. Thank you.
To:
Fax No.:
[Name of Receiving or Presenting Member]
*The below Item which was exchanged FROM/TO (delete one) you on . has been incorrectly
encoded and we will now adjust in terms of Schedule 4, Rules 4.1(d)(i) or (e)(i) of the APCS Procedures.
*The below Item which was exchanged FROM/TO (delete one) you on . has been incorrectly
encoded and we seek your assistance in recovering from the DRAWER/CREDITEE (delete one) in terms of
Schedule 4, Rules 4.1(d)(ii) or (e)(i) of the APCS Procedures.
*(Strike-out the inapplicable paragraph)
Details of the incorrectly encoded Item are shown below:
DEBIT ITEM:
Payee:
Drawer:
Extra Aux Dom Serial Number
BSB Number
_________ ________ ___ - ___
Account Number
Amount of Cheque Amount Encoded
_________
$_________ $_________
CREDIT ITEM:
For Credit of:
BSB Number
Account Number
Amount of Credit
Amount Encoded
___ - ___
_________
$_________
$_________
TRACE DETAILS: ___________________________________________________________

ADDITIONAL INSTRUCTIONS (if necessary):____________________________________
_____________________________________________________________________________
Image of Item front and reverse (if held)

C11.1
[ABN 12 055 136 519]


Last amended
effective 24/01/05
Confidential
NOTIFICATION OF ENCODING ERROR

Reference Number:
Date Sent:
CONFIDENTIAL COMMUNICATION: This message is both URGENT and CONFIDENTIAL and is intended only for the use of the addressee. If you
have received this communication in error, please notify the financial institution from which you received it immediately to arrange disposal. Unauthorised
use of any information in this message may result in legal proceedings against the user. Thank you.
FROM:
[Insert full name and ACN/ABN/ARBN of Receiving or Presenting Member]
Receiving or Presenting Member:

ACN/ABN/ARBN:
e-mail Address:
Fax Number:
Phone Number:
TO:
[Name of Receiving or Presenting Member]
Receiving or Presenting Member:

e-mail Address:
Fax Number:
* The below Item which was exchanged FROM/TO (delete one) you on [ Date ] has been incorrectly encoded
and we will now adjust in terms of Schedule 4, Rules 4.1(d)(i) or (e)(i) of the APCS Procedures.
* The below Item which was exchanged FROM/TO (delete one) you on [ Date ] has been incorrectly encoded
and we seek your assistance in recovering from the DRAWEE/CREDITEE (delete one) in terms of Schedule 4,
Rules 4.1(d)(ii) or (e)(i) of the APCS Procedures.
* (Strike out the inapplicable paragraph)
Details of the incorrectly encoded Item are shown below:
DEBIT ITEM:
Payee:
Drawer:
Extra Aux Dom:
Serial Number:
BSB Number:
Account Number:
Amount of Cheque:
Amount Encoded:
CREDIT ITEM:
For Credit of:
BSB Number:
Account Number:
Amount of Credit:
Amount Encoded:

C11.2
[ABN 12 055 136 519]


Last amended
effective 24/01/05
Confidential
TRACE DETAILS:
ADDITIONAL
INSTRUCTIONS
(if necessary):
Image of the Item front and reverse (if held)

C11.3
[ABN 12 055 136 519]

Appendix C12 Special Answer by Personal Presentation

(Schedule 10, Rule 2.1.4.4)
Inserted effective
11/10/06
Confidential
SPECIAL ANSWER REQUEST by PERSONAL PRESENTATION

Date:
URGENT AND CONFIDENTIAL COMMUNICATION: This request is both URGENT and CONFIDENTIAL and is
intended only for the use of the addressee. Unauthorised use of any information in this message may result in legal
proceedings against the user. Thank you.
From:.[Full Name, ACN/ABN/ARBN and address of collecting Institution]Telephone No.:..
Contact Officers
Signature:
To:[Paying Institutions name and Branch]...
Serial Number:
BSB Number:
Account Number:
The attached cheque, details of which are shown above, is presented for special answer. If paid, please effect payment as
mutually agreed. If payment is to be by RTGS transfer, please remit the value to:
BSB Number:
Account Number:
Beneficiary Name:
The ANSWER on the Item presented for Special Answer is:

[ ] PAID and VALUE REMITTED/PAYMENT MADE BY*.
..
Replying Officers
Signature:

REPLY
From:[Paying Institutions Full Name and ACN/ABN/ARBN]..Date:
The ANSWER on the Item presented by Special Answer Number:is:
[ ] PAID and VALUE REMITTED/PAYMENT MADE BY* ..

..

C12.1
[ABN 12 055 136 519]

Appendix C12 Special Answer by Personal Presentation

Inserted effective
11/10/06
Confidential
Replying Officers
Signature:
* Delete one

C12.2
[ABN 12 055 136 519]


Appendix C13 Customer Notice of Inward Dishonour
Inserted effective
15/01/07
Confidential

[Insert collecting Institutions full name, ACN/ARBN/ABN and address]
Telephone enquiries: [insert number]
Fax: [insert number]
[Insert date of Notice]
Our reference: [insert collecting Institutions Number]

Transaction ID: [insert collecting Institutions Number]
[Insert customers name and address]

Dear [insert customers name]
On [insert date] you deposited $ [insert total amount of deposit] at [insert branch name] branch to your account
number [insert number] and included in this deposit was a cheque [details of which are listed below/an image
or photocopy of which is provided below]. We have been advised that the cheque is being returned to us
unpaid with the answer [insert dishonour answer].
Drawer:
[insert drawers full name]
Financial Institution and branch:
[insert ledger Institutions name and address]
Amount:
$ [insert amount]
The amount of the dishonoured cheque (which was credited to your account number [insert number] on a
provisional basis pending clearance) has been debited to your account number [insert number].
A fee of $ [insert amount] has been charged to your account number [insert number].
Please be advised that this notice is sufficient for your proof of non payment against the drawer and that when
we receive the dishonoured cheque it will be held by us on your behalf and returned to you at your request.
This notice should be retained for your records and if you have a query regarding it please contact us on the
above number or contact your local branch.
Yours sincerely
For the MANAGER
Note:
In lieu of advising the customer of the details of the dishonoured cheque, an image/photocopy of the dishonoured cheque may be
inserted.

C13.1
[ABN 12 055 136 519]

Amendment No. E034 issued as CS1/r&p/010.06

Appendix C13 Customer Notice of Inward Dishonour
Inserted effective
15/01/07
Confidential
Electronic Version

[Insert collecting Institutions full name, ACN/ARBN/ABN and address]

Telephone enquiries: [insert number]
Fax: [insert number]
[Insert date of Notice]
Our reference: [insert collecting Institutions Number]
Transaction ID: [insert collecting Institutions Number]
[Insert customers name and address]
Dear [insert customers name]
On [insert date] you deposited $ [insert total amount of deposit] at [insert branch name] branch to your
account number [insert number] and included in this deposit was a cheque [details of which are listed
below/an image or photocopy of which is provided below]. We have been advised that the cheque is being
returned to us unpaid with the answer [insert dishonour answer].
Drawer:
[insert drawers full name]
Financial Institution and branch:
[insert ledger Institutions name and address]
Amount:
$ [insert amount]
The amount of the dishonoured cheque (which was credited to your account number [insert number] on a
provisional basis pending clearance) has been debited to your account number [insert number].
A fee of $ [insert amount] has been charged to your account number [insert number].
Please be advised that this notice is sufficient for your proof of non payment against the drawer and that
when we receive the dishonoured cheque it will be held by us on your behalf and returned to you at your
request.
This notice should be retained for your records and if you have a query regarding it please contact us on the
above number or contact your local branch.
Yours sincerely
For the MANAGER

C13.2
[ABN 12 055 136 519]


Appendix C14 Bill for Collection
Inserted effective
19/04/07
Confidential
BILL for COLLECTION
[Requesting FIs Logo - Optional]

Date:..
Collection Number@:
CONFIDENTIAL COMMUNICATION: This request is CONFIDENTIAL and is intended only for the use of the addressee. Unauthorised
use of any information in this message may result in legal proceedings against the user. Thank you.
From:. [Full Name, ACN/ABN/ARBN and address of requesting Institution].Telephone No.:...
.
Contact Officers
Signature: .
To:[Paying Institutions name and Branch]....

.
The attached collection is for the following:
[ ] Balance of Account (include signed cheque/withdrawal/ instruction from customer):
Account Type:.
Account Number:...
[ ] Cheque:
Serial Number:.... BSB Number:.. Account Number:. $............................
Special Instructions (eg hold for seven days, if necessary):....
[ ] Other (please specify):.
..
If payment involves credit/debit funds please remit/draw for the value to/on the following account under reference to the above collection
number.
BSB Number:. Account Number:.. Beneficiary Name:

REPLY*
BILL for COLLECTION No.#:
From:[Paying Institutions Full Name and ACN/ABN/ARBN]..Date:..
To:[Requesting Institutions name and address].....

.
The Bill for Collection is unpaid/paid (delete one), please note the reason/information (delete one):
Replying Officers
Signature:
@The collection number must only be numeric.

* A reply is only required if the Bill for Collection is unpaid or where some information needs to be advised to the requesting Institution.
# Insert requesting Institutions collection number.
The next page is D.1

Appendix D is Confidential
C14.1
[ABN 12 055 136 519]

Last amended,
effective 30/9/99
Appendix D Processing Centre Contact Points

(Schedule 11, Appendix E)
Confidential
Appendix D Contact points
Confidential
Appendix D is located separately
The next page is E.1

Appendix E is Confidential

D.1
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.
Appendix E - Electronic Presentment & Electronic Dishonour File Specifications

Schedule 11
Confidential
Appendix E
ELECTRONIC PRESENTMENT & ELECTRONIC DISHONOUR FILE

SPECIFICATIONS
Confidential
E.1
GENERAL
E.1.1
Definitions
The following words have these meanings in Appendices E and F unless the contrary intention appears.
"Electronic Dishonour Acknowledgment File " has the meaning as described in Appendix E clause
E.2.2.2.
"Electronic Dishonour, Electronic Dishonour Refusal and Voucher Required Transmission Cycle"
has the meaning described in Appendix E clause E.2.2.
"Electronic Dishonour File" has the meaning as described in Appendix E clause E.2.2.1.
"Electronic Dishonour Record" has the meaning as described in Appendix F clause F.3.
"Electronic Dishonour Refusal Acknowledgment File" has the meaning as described in Appendix E
clause E.2.2.2.
"Electronic Dishonour Refusal File" has the meaning as described in Appendix E clause E.2.2.1.
"Electronic Dishonour Refusal Record" has the meaning as described in Appendix F clause F.5.
"Electronic Presentment Acknowledgment File" has the meaning as described in Appendix E. clause
E.2.1.2.
"Electronic Presentment File" has the meaning as described in Appendix E. clause E.2.1.1.
"Electronic Presentment Record" has the meaning as described in Appendix F clause F.1.
"Electronic Presentment Transmission Cycle" has the meaning as described in Appendix E clause E.2.1.
"File Acknowledgment File" has the meaning as described in Appendix E clause E.2.2.2.
"File Acknowledgment Record" has the meaning as described in Appendix F clause F.10.
"File Header Record" has the meaning as described in Appendix F clause F.9.
"File Total Record" has the meaning as described in Appendix F clause F.11.
"Presentment File Header Record" is the file header record as described in Appendix F clause F.9, that
is the first record in a electronic presentment file as described in Appendix E clause E.2.1.1.
"Technically Invalid Electronic Dishonour Acknowledgment File" has the meaning as described in
Appendix E clause E.2.2.3 for a Technically Invalid Electronic Dishonour File.

E.1
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

Schedule 11
Confidential
"Technically Invalid Electronic Dishonour File" has the meaning as described in Appendix E clause
E.2.2.2.
"Technically Invalid Electronic Dishonour Record" has the meaning as described in Appendix F clause
F.4.
"Technically Invalid Electronic Dishonour Refusal Acknowledgment File" has the meaning as as
described in Appendix E clause E.2.2.3 for a Technically Invalid Electronic Dishonour Refusal File.
"Technically Invalid Electronic Dishonour Refusal File" has the meaning as described in Appendix E
clause E.2.2.2.
"Technically Invalid Electronic Dishonour Refusal Record" has the meaning as described in Appendix F
clause F.6.
"Technically Invalid Electronic Presentment Acknowledgment File" has the meaning as described in
Appendix E clause E.2.1.3 for a Technically Invalid Electronic Presentment File.
"Technically Invalid Electronic Presentment File" has the meaning as described in Appendix E clause
E.2.1.2.
"Technically Invalid Electronic Presentment Record" has the meaning as described in Appendix F.
clause F.2.
"Technically Invalid Voucher Required File" has the meaning as described in Appendix E clause E.2.2.2.
"Technically Invalid Voucher Required Record" has the meaning as described in Appendix F.8
"Transmission " means a Transmission A, or Transmission B, or Transmission C, or Transmission D, or
Transmission E, or transmission F.
"Transmission A" has the meaning as described in Appendix E clause E.2.1.1.
"Transmission B" has the meaning as described in Appendix E clause E.2.1.2.
"Transmission C" has the meaning as described in Appendix E clause E.2.1.3.
"Transmission D" has the meaning as described in Appendix E clause E.2.2.1.
"Transmission E" has the meaning as described in Appendix E clause E.2.2.2.
"Transmission F" has the meaning as described in Appendix E clause E.2.2.3.
"Voucher Required File" has the meaning as described in Appendix E clause E.2.2.1.
"Voucher Required Record" has the meaning as described in Appendix F clause F.7.

E.2
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

Schedule 11
Confidential
E.1.2
Overview
The file specifications cover the electronic file format and transmission requirements for electronic
presentment and dishonour between Tier 1A Participating Members.
Tier 1A Participating Members which are direct clearers in a Region must have the ability, for electronic
presentment, to transmit/receive to/from all other Tier 1A Participating Members which are direct clearers
in that Region the following files:
z
z
z
z
Electronic Presentment Files;

Technically Invalid Electronic Presentment Files;
Electronic Presentment Acknowledgment Files; and
Technically Invalid Electronic Presentment Acknowledgment Files.
dishonour (including return messages), to transmit/receive to/from all other Tier 1A Participating Members
which are direct clearers in that Region the following files:
z
z
z
z
z
z
z
z
Electronic Dishonour Files;

Technically Invalid Electronic Dishonour Files;
Electronic Dishonour Acknowledgment Files;
Technically Invalid Electronic Dishonour Acknowledgment Files; and
Voucher Required Files;
Technically Invalid Voucher Required Files;
Voucher Required Acknowledgment Files; and
Technically Invalid Voucher Required Acknowledgment Files.
dishonour refusal, to transmit/receive to/from all other Tier 1A Participating Members which are direct
clearers in that Region the following files:
z
z
z
z
Electronic Dishonour Refusal Files;

Technically Invalid Electronic Dishonour Refusal Files;
Electronic Dishonour Refusal Acknowledgment Files; and
Technically Invalid Electronic Dishonour Refusal Acknowledgment Files.
All files exchanged between Tier 1A Participating Members must conform with these specifications.
Records and files not conforming with the applicable file specifications may be rejected by Receiving
Institutions in accordance with clauses E.7 and E.8.
E.2
File Transmission Structure
Tier 1A Participating Members will determine by bilateral agreement the timing of the transmission cycles.
There are two types of transmission cycles:
z
z
the Electronic Presentment Transmission Cycle; and

the Electronic Dishonour, Electronic Dishonour Refusal and Voucher Required Transmission
Cycle.

E.3
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

Schedule 11
Confidential
E.2.1
Electronic Presentment Transmission Cycle
The Electronic Presentment Transmission Cycle consists of three transmissions, namely Transmission A,
Transmission B and Transmission C.
Where a logical file is rejected, or an error occurs in the Electronic Presentment Transmission Cycle, clause
E.8 and clause E.9 outline the responsibilities of the Sending Institution and Receiving Institution.
E.2.1.1
Transmission A
Transmission A will consist of one physical file containing one logical Electronic Presentment File.
The logical Electronic Presentment File will contain record types in the following sequence:
z
z
z
one Presentment File Header Record (9000);

zero or more Electronic Presentment Record/s (1010); and
one File Total Record (9090).
If there are no Electronic Presentment Records (1010) to transmit, then an Empty Electronic Presentment
File will be transmitted. Refer to clause E.3 Empty Files.
E.2.1.2
Transmission B
The Receiving Institution must respond within 30 minutes of receipt of Transmission A, with a
Transmission B. If a Transmission B is not received within 30 minutes of Transmission A completion, then
the Sending Institution of Transmission A must contact the Processing Centre Contact Point of the
Receiving Institution (see Appendix D) to ascertain the reason.
Transmission B will consist of one physical file containing one logical Electronic Presentment
Acknowledgment File and one logical Technically Invalid Electronic Presentment File.
The logical Electronic Presentment Acknowledgment File will contain records in the following sequence:
z
z
z
one File Header Record (9000);

one File Acknowledgment Record (9010); and
The logical Technically Invalid Electronic Presentment File will contain records in the following sequence:
z
z
z

zero or more Technically Invalid Presentment Records/s (1015); and
The Electronic Presentment Acknowledgment File will immediately precede the Technically Invalid
Electronic Presentment File.
If there are no Technically Invalid Electronic Presentment Records (1015) to transmit, then an Empty
Technically Invalid Electronic Presentment File will be transmitted. Refer to clause E.3 Empty Files.

E.4
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

Schedule 11
Confidential
E.2.1.3
Transmission C
The Receiving Institution must respond within 30 minutes of receipt of Transmission B, with a
Transmission C. If a Transmission C is not received within 30 minutes of Transmission B completion, then
the Sending Institution of Transmission B must contact the Processing Centre Contact Point of the
Transmission C will consist of one physical file containing one logical Technically Invalid Electronic
Presentment Acknowledgment File.
The logical Technically Invalid Electronic Presentment Acknowledgment File will contain records in the
following sequence:
z
z
z

Sending a Transmission C will complete the Electronic Presentment Transmission Cycle.

If the Receiving Institution wishes to reject the Technically Invalid Electronic Presentment
Acknowledgment File contained within Transmission C, then it must contact the Sending Institution within
30 minutes of Transmission C completion to indicate and resolve the matter.
E.2.2
Electronic Dishonour, Electronic Dishonour Refusal and Voucher Required

Transmission Cycle
The Electronic Dishonour, Electronic Dishonour Refusal and Voucher Required Transmission Cycle
consists of three transmissions, namely Transmission D, Transmission E and Transmission F.
Where a logical file is rejected, or an error occurs in the Electronic Dishonour, Electronic Dishonour
Refusal and Voucher Required Transmission Cycle, clause E.8 and clause E.9 outline the responsibilities of
the Sending Institution and Receiving Institution.
E.2.2.1
Transmission D
Transmission D will consist of one physical file containing:

z
z
z
one logical Electronic Dishonour File;

one logical Electronic Dishonour Refusal File; and
one logical Voucher Required File.
The logical Electronic Dishonour File will contain records in the following sequence:
z
z
z

zero or more Electronic Dishonour Record/s (1011); and

E.5
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

Schedule 11
Confidential
The logical Electronic Dishonour Refusal File will contain records in the following sequence:
z
z
z

zero or more Electronic Dishonour Refusal Record/s (1012); and
The logical Voucher Required File will contain records in the following sequence:
z
z
z

zero or more Voucher Required Record/s (1510); and
Where there are no Electronic Dishonour Records (1011); or Electronic Dishonour Refusal Records (1012);
or Voucher Required Records (1510), to transmit, then an Empty File/s will be transmitted. Refer to clause
E.3 Empty Files.
E.2.2.2
Transmission E
The Receiving Institution must respond within 30 minutes of receipt of Transmission D with a
Transmission E. If a Transmission E is not received within 30 minutes of Transmission D completion, then
the Sending Institution of Transmission D must contact the Processing Centre Contact Point of the
Transmission E will consist of one physical file containing:
z
z
z
z
z
z
one logical Electronic Dishonour Acknowledgment File;

one logical Technically Invalid Electronic Dishonour File;
one logical Electronic Dishonour Refusal Acknowledgment File;
one logical Technically Invalid Electronic Dishonour Refusal File;
one logical Voucher Required Acknowledgment File; and
one logical Technically Invalid Voucher Required File.
Each logical File Acknowledgment File will contain records in the following sequence:
z
z
z

The logical Technically Invalid Electronic Dishonour File will contain records in the following sequence:
z
z
z

zero or more Technically Invalid Electronic Dishonour Record/s (1016); and
The logical Technically Invalid Electronic Dishonour Refusal File will contain records in the following
sequence:
z
z
z

zero or more Technically Invalid Electronic Dishonour Refusal Record/s (1017); and

E.6
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

Schedule 11
Confidential
The logical Technically Invalid Voucher Required File will contain records in the following sequence:
z
z
z

zero or more Technically Invalid Voucher Required Record/s (1515); and
Each File Acknowledgment File will immediately precede its associated Technically Invalid File.
Where there are no Technically Invalid Electronic Dishonour Records (1016); or Technically Invalid
Electronic Dishonour Refusal Records (1017); or Technically Invalid Voucher Required Records (1515), to
transmit, then an Empty File/s will be transmitted. Refer to clause E.3 Empty Files.
E.2.2.3
Transmission F
The Receiving Institution must respond within 30 minutes of receipt of Transmission E with a
Transmission F. If a Transmission F is not received within 30 minutes of Transmission E completion, then
the Sending Institution of Transmission E must contact the Processing Centre Contact Point of the
Transmission F will consist of one physical file containing:
z
z
one logical Technically Invalid Electronic Dishonour Acknowledgment File;

one logical Technically Invalid Electronic Dishonour Refusal Acknowledgment File;
and
one logical Technically Invalid Voucher Required Acknowledgment File.
Each logical File Acknowledgment File will contain records in the following sequence:
z
z
z

Sending a Transmission F will complete the Electronic Dishonour, Electronic Dishonour Refusal and
Voucher Required Transmission Cycle.
If the Receiving Institution wishes to reject a File Acknowledgment File contained within Transmission F,
then it must contact the Sending Institution within 30 minutes of Transmission F completion to indicate and
resolve the matter.

E.7
[ABN 12 055 136 519]


Schedule 11
Inserted,
effective 1/7/98.
Confidential
TRANSMISSION CYCLE EXAMPLES
Electronic Presentment Transmission Cycle
Tier 1A Member UVW
Electronic Dishonour, Electronic Dishonour Refusal and Voucher Required

Transmission Cycle
Tier 1A Member XYZ
Tier 1A Member UVW
Transmission A
Transmission D
Logical Electronic Presentment File
Tier 1A Member XYZ
Logical Electronic Dishonour File

Logical Electronic Dishonour Refusal File
Logical Voucher Required File
Transmission B
Transmission E
Logical
Electronic
Presentment
Acknowledgment File
Logical Technically Invalid Electronic
Presentment File
Transmission C
Logical
Technically
Invalid
Presentment Acknowledgment File
Logical Electronic Dishonour Acknowledgment File

Dishonour File
Logical Electronic Dishonour Refusal
Acknowledgment File
Dishonour Refusal File
Logical Voucher Required Acknowledgment File
Logical Technically Invalid Voucher
Required File.
Transmission F
Electronic

Dishonour Acknowledgment File
Dishonour Refusal Acknowledgment File
Logical Technically Invalid Voucher
Required Acknowledgment File
[ABN 12 055 136 519]

E.8
Inserted,
effective 1/7/98.

Schedule 11
Confidential
E.3
Empty Files
Where there are no records to transmit for a particular record type (including technically invalid record
types), an empty file for the record type will be transmitted.
An empty file will contain a File Header Record (record type 9000) with the particular record type in field 9
(see Appendix F clause F.9), and a File Total Record (record type 9090) with zeroes in fields 3, 4, 5, 6 and
7 (see Appendix F clause F.11).
E.4
Record Types
(a)
File Header Record (record type 9000) : This record type is common to all files. (See Appendix
F clause F.9).
(b)
File Acknowledgment Record (record type 9010) : This record type confirms that a file has been
received correctly. (See Appendix F clause F.10).
(c)
Electronic Presentment Record (record type 1010) : (See Appendix F clause F.1).
(d)
Electronic Dishonour Record (record type 1011) : (See Appendix F clause F.3).
(e)
Electronic Dishonour Refusal Record (record type 1012) : (See Appendix F clause F.5).
(f)
Voucher Required Record (record type 1510) : (See Appendix F clause F.7).
(g)
Technically Invalid Electronic Presentment Record (record type 1015) : This record type is used
when an Electronic Presentment Record, having been acknowledged as accepted, fails individual
record validation. (See Appendix F clause F.2).
(h)
Technically Invalid Electronic Dishonour Record (record type 1016) : This record type is used
when an Electronic Dishonour Record, having been acknowledged as accepted, fails individual
(i)
Technically Invalid Electronic Dishonour Refusal Record (record type 1017) : This record type
is used when an Electronic Dishonour Refusal Record, having been acknowledged as accepted,
fails individual record validation. (See Appendix F clause F.6).
(j)
Technically Invalid Voucher Required Record (record type 1515) : This record type is used
when a Voucher Required Record, having been acknowledged as accepted, fails individual
(k)
File Total Record (record type 9090) : This record type is common to all files and shows the
respective totals of record types 1010, 1011,1012, 1510, 1015, 1016, 1017, 1515, and 9010. (See
Appendix F clause F.11). Record types cannot be mixed within a file.
E.5
File Transmission Protocols/Handshaking

File transmission protocols/handshaking must be agreed bilaterally between the Tier 1A
Participating Members. Only those transmission cycles defined in clause E.2 are allowed.
Each Tier 1A Participating Member must ensure that all of its bilateral links to Tier 1A
Participating Members are encrypted using triple DES or its equivalent.
Inserted effective
9/12/2009
(Note: It is recommended that bilateral links between each Representative and Appointor should

E.9
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

Schedule 11
Confidential
be encrypted using triple DES or its equivalent.)
E.6
File Acknowledgment
All files, including value, non-value files and empty files, successfully transmitted between Sending and
Receiving Institutions will be acknowledged by a File Acknowledgment File.
One File Acknowledgment File containing a File Header Record, a File Acknowledgment Record and a
File Total Record must be returned to the Sending Institution by the Receiving Institution for each file
received. Not more than one File Acknowledgment Record (9010) will be contained within a File
Acknowledgment File.
If the file is accepted, the "amount" and "count" fields (fields 4, 5, 6, 7, and 8) in the File Acknowledgment
Record (9010) must agree with the accepted File Total Record (9090).
If the file is rejected, the "amount" and "count" fields (fields 4, 5, 6, 7, and 8) in the File Acknowledgment
Record (9010) must all contain zeros. These are the only fields that may be altered.
E.7
Rejection Of Individual Records By Receiving Institution (Includes Rejection Of

Individual Records Drawn On The Receiving Institutions Appointors)
A Receiving Institution may reject an individual record because:

z
z
z
z
z
the record does not conform with the applicable record specifications;
the Receiving Institution's (or its Appointors) internal check digit validation fails;
any field in a record that must be validated to specification fails to meet that validation;
the record is identified as a duplicate; or
the record is identified as unmatched (record types 1011, 1012 and 1510).
If a File Header Record (record type 9000) in a file does not conform with the record specification in
Appendix F clause F.9, then the file may be rejected. Refer to clause E.8.
Where individual records are rejected, the Receiving Institution must create a technically invalid record for
each record rejected. That is where a:
Electronic Presentment Record (1010) is rejected a Technically Invalid Electronic Presentment
Record (1015) must be created.
z
Electronic Dishonour Record (1011) is rejected a Technically Invalid Electronic Dishonour
Record (1016) must be created.
z
Electronic Dishonour Refusal Record (1012) is rejected a Technically Invalid Electronic
Dishonour Refusal Record (1017) must be created.
z
Voucher Required Record (1510) is rejected a Technically Invalid Voucher Required Record
(1515) must be created.
In each technically invalid record (1015, 1016, 1017, and 1515), field 27 "technically invalid code" must
indicate:
z
z
z
The first field in the record which has failed the required field specification as defined in
Appendix F; or
Where CDV arrangements are in place and the Receiving Institution's (or its Appointors)
internal check digit validation fails, must show 99; or
Where a duplicate Item is rejected, must show 98; or
Where an unmatched record type of 1011, 1012 or 1510 exists, must show 97.

E.10
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

Schedule 11
Confidential
E.8
Errors Causing File Rejection
A Receiving Institution may reject files (including any files containing record types 1010, 1011, 1012,
1510, 1015, 1016, 1017, and 1515 ) as follows:
(a)
If a file contains invalid record types, ie the first 4 character positions in a record are not 1010,
1011, 1012, 1510, 1015, 1016, 1017, 1515, 9000, 9010 or 9090;
(b)
If a file is received with record types not in any of the sequences detailed in clause E.2 (ie.
header, details, total);
(c)
If the first record on a file is not a record type 9000;
(d)
If the last record on a file is not record type 9090;
(e)
If a file is received with data not in the specified character bit structure of EBCDIC;
(f)
If the total number of records rejected (as detailed in clause E.7) exceeds 50 then the Receiving
Institution may at its own discretion reject the complete file;
(g)
If any of the fields in record types 9000 and 9090 that have mandatory status are not to
specification as defined in the Appendix F;
Amended,
effective 30/09/99
(h)
If the total value and the number of records in a file is equal to a previously transmitted file of
the same type; or
Amended,
effective 30/09/99
(i)
If one or more of the records contains an invalid amount field, but the accumulative value of the
other records equals the file debit total amount in that File Total record.
Inserted,
effective 30/09/99
If a Receiving Institution rejects a logical file due to E.8(f) then the Receiving Institution must provide
details to the Sending Institution of at least the first 50 invalid records, and why they were rejected.
E.9
File Rejection/Transmission Difficulties
All logical files received from a Sending Institution must be treated and processed as individual files.
Where a problem is encountered with a file (as detailed in clause E.8) or transmission, the Receiving
Institution must contact the Processing Centre Contact Point for the Sending Institution (see Appendix D)
to provide details of the problem. Both institutions will agree what action should be taken to resolve the
situation.
Last amended
effective 25/7/08
If the Sending Institution and the Receiving Institution are unable to agree what action should be taken
where a file has been rejected, and the Sending Institution is not in the midst of a disabling event, the
Receiving Institution may request the Sending Institution, to amend the rejected logical file(s) and:
z
retransmit the Transmission. The logical file(s) contained within the Transmission must contain
new file sequence number(s). Where the Transmission which contained the rejected logical
file(s) has more than one logical file, and some of the logical files have been acknowledged as
accepted, the Receiving Institution may request the Sending Institution to send empty logical
file(s) (with a new file sequence number) for those logical file(s) in the new Transmission; or
retransmit the whole transmission cycle. The logical file(s) contained within the transmission
must contain the same file sequence numbers.

E.11
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

Schedule 11
Confidential
E.10
The Receiving Institution must, to the best of its ability, assist the Sending Institution by waiting
for transmission of the replacement file(s) until a time reasonably specified by the Receiving
Institution.
E.11
Where a problem encountered relates to transmission difficulties, consideration must be given to

implementing the fallback procedures.
E.12
E.12.1
Responsibilities
Last amended
effective 30/8/02
Participating Members have a responsibility to each other and to the APCS as a whole, to co-operate in
resolving any processing and transmission difficulties including during Disabling Events.
Last amended
effective 30/8/02
Except to the extent that such co-operation would adversely affect its own processing environment, a
Participating Member receiving a request for assistance may not unreasonably withhold such assistance.
E.12.2
Options
Where processing difficulties occur, depending upon the circumstances, possible remedial action could
include:
(a)
agreement to delay transmission pending resolution of the problem;
(b)
use of alternate communications link(s);
(c)
use of physical medium instead of communications link(s); or
(d)
revert to paper.
E.12.3
Physical Medium Handling
Last amended
effective 30/8/02
Last amended
effective 30/8/02
Physical medium must be supplied in bilaterally agreed medium and suitable to the volume of data.
Last amended
effective 30/8/02
Physical medium must be adequately packaged in suitable containers to reduce the possibility of damage in
transit.
Last amended
effective 30/8/02
E.12.4
Last amended
effective 30/8/02
External Labelling of Physical Medium
Full identifying information relating to ownership of the physical medium, and the details of contents are to
be marked on the piece of physical medium. Such information is to include the following:
Last amended
effective 30/8/02
Last amended
effective 30/8/02
date to be processed;
Sending Institution name and return address;
Receiving Institution name and address;
physical medium sequence number in the file (eg cartridge 1 of 2);
recording format and density (eg 3480, 18 track, 250mb, EBCDIC), if applicable.
E.12.5
Contact Points
Last amended
effective 25/7/08
z
z
z
z
All Tier 1A Participating Members must nominate and advise the Company of a Processing Centre Contact
Point to whom information or enquires must be directed in the event of processing difficulties. A list of
Processing Centre Contact Points is shown in Appendix D1.

E.12
Last amended
effective 25/7/08
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

Schedule 11
Confidential
E.12.6
[deleted]
Deleted effective
30/8/02
E.12.7
[deleted]
Deleted effective
30/8/02
The next page is F1.1

Appendix F is Confidential

E.13
[ABN 12 055 136 519]

Inserted
effective 1/7/98
Appendix F - CS1 Value, Non Value And Reconciliation Control Messages

Confidential
F
Electronic Presentment & Dishonour Record Layouts

Confidential
The following standard rules apply to the record layouts below:
Individual field specifications override the following standard rules.
Alphanumeric fields must be left justified and blank filled. Valid values are all EBCDIC characters.
Alpha fields must be left justified and blank filled. Valid values are A through Z.
Numeric fields must be right justified and zero filled. Valid values are 0 through 9.
If an alphanumeric field is optional and not present, blank fill.
If a numeric field is optional and not present, zero fill.
All amount fields will be shown in cents without punctuation, and be unsigned.
F.1
Key for Attribute:

n
=
numerical characters.
a
=
alphabetical characters.
Key for Field Status:
m
=
mandatory.
o
=
optional.
02
=
Element must contain same data as in original record.
03
=
If element present must contain same data as in previous record.
Electronic Presentment Record - 1010 - total record length 132
Field
Number
Field Name
Field
Size
Attribute
Field
Status
1
2
3
Record Type Identifier

Version
BSB (Ledger FI)
4
2
6
n
n
n
m
m
m
BSB (Collecting FI)
5
6
7
Transaction Code
Amount
BSB (Depositors Nominated FI)
3
12
6
n
n
n
m
m
o
Field Specification
Must be 1010.
Must be a Version number for the Record Type approved by MC1. Currently is 03.
Character positions 1 to 3 must be a valid 2 or 3 digit Institution Identifier issued by APCA (refer to
APCA publication 'BSB Numbers in Australia').
Identifies the BSB encoded on the cheque.
Identifies the address to which the Item and mailing advice must be returned if dishonoured.
Must be an industry agreed transaction code as set out in the APCS Procedures, Appendix B.
Must be a value greater than zero.
If present :
Identifies the domicile of the account to which the value was credited.
If not present, zero fill.

F.1
Inserted
effective 1/7/98

Confidential
F.1
Electronic Presentment Record - 1010 (Continued)
Field
Number
Field Name
Field
Size
Attribute
Field
Status
21
a/n
21
a/n
10
11
12
Account Number of Depositors

Nominated Account
Auxiliary Domestic
Extra Auxiliary Domestic
BSB (Capturing FI)
9
11
6
n
n
n
m
o
m
13
Transmission Date
14
15
16
17
Capture Device Identifier

Voucher Indicator
Manual Repair
3
12
1
1
a/n
n
a
n
m
m
o
o
Field Specification
Valid values are 0 through 9 and blank.

Right justified and blank filled.
Must not contain all blanks or all zeros.
Leading zeros, which are part of an account number, must be shown. (Some Financial Institutions have
leading zeros in valid account numbers, ie. 00-1234 would be captured as 001234.)
Must contain the exact numeric values contained in the account number field on the MICR Codeline.
The actual number of digits printed on the voucher must be included in this field.
If present on the voucher, this information must be shown in this field.
Must identify the region of exchange.
Format of CCYYMMDD.
Date electronic record is exchanged for settlement.
Use Voucher Indicator Codes as set out in the APCS Procedures, Schedule 11, Rule 1.14.
Valid values are 1 or 0.
Show 1 if one or more fields have been manually entered or altered.

F.2
Inserted
effective 1/7/98

Confidential
F.2
Technically Invalid Electronic Presentment Record - 1015 - total record length 146
Field
Number
Field
Size
Attribute
Field
Status
4
2
6
6
3
12
6
21
21
n
n
n
n
n
n
n
a/n
a/n
m
m
02
02
02
02
02
02
02
Must be 1015.
Must be the same as Field 3 in the 1010 Record being rejected.
10
11
12
13
14
15
16
17

Version
BSB (Ledger FI)
BSB (Collecting FI)
Transaction Code
Amount
Nominated Account
Auxiliary Domestic
BSB (Capturing FI)
Transmission Date
Voucher Indicator
Manual Repair
9
11
6
8
3
12
1
1
n
n
n
n
a/n
n
a
n
02
02
02
02
02
02
02
02

Must be the same as Field 17 in the 1010 Record being rejected..
26
27
Technically Invalid Transaction ID

Technically Invalid Code
12
2
n
n
m
m
1
2
3
4
5
6
7
8
9
Field Name
Field Specification
Must be the field number of the first field to fail the industry-agreed validation criteria, or the
technically invalid code as set out in the APCS Procedures, Appendix E clause E.7.
The fields after the double lines are the fields to be added at this stage.

F.3
Inserted
effective 1/7/98

Confidential
F.3
Electronic Dishonour Record - 1011 - total record length 233
Field
Number
1
2
3
4
5
6
7
8
9
Field
Size
4
2
6
6
3
12
6
21
21
Attribute
n
n
n
n
n
n
n
a/n
a/n
Field
Status
m
m
02
02
02
02
02
02
02
Field Specification
Must be 1011.
Must be the same as Field 3 in the 1010 Record being dishonoured.
9
11
6
8
3
12
1
1
8
12
n
n
n
n
a/n
n
a
n
n
n
02
02
02
02
02
02
02
02
03
03

Must be the same as Field 18 in the relative 1510 Voucher Required Record, if sent.
Must be the same as Field 19 in the relative 1510 Voucher Required Record, if sent.
10
11
12
13
14
15
16
17
18
19
Field Name
Version
BSB (Ledger FI)
BSB (Collecting FI)
Transaction Code
Amount
Nominated Account
Auxiliary Domestic
BSB (Capturing FI)
Transmission Date
Voucher Indicator
Manual Repair
Voucher Required by Date
Voucher Required Transaction ID
20
21
22

Return Code
Title of Account to be Debited
12
3
60
n
n
a/n
m
m
m
23
BSB (Transferee FI)
Must be a valid industry agreed return code as set out in the APCS Procedures, Schedule 11, Rule 2.10.
Must contain Title of account at Drawee Institution, unless unprocessable item (trancode 941), or no
account (trancode 942), in which case it will contain n/a.
Must not contain all blanks.
APCA publication BSB Numbers in Australia).
Must be used only in conjunction with Return Code 915.

F.4
Inserted
effective 1/7/98

Confidential
F.4
Technically Invalid Electronic Dishonour Record - 1016 - total record length 247
Field
Number
1
2
3
4
5
6
7
8
9
Field Name
Field
Size
Attribute
Field
Status
Field Specification
4
2
6
6
3
12
6
21
21
n
n
n
n
n
n
n
a/n
a/n
m
m
02
02
02
02
02
02
02
Must be 1016.
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Version
BSB (Ledger FI)
BSB (Collecting FI)
Transaction Code
Amount
Nominated Account
Auxiliary Domestic
BSB (Capturing FI)
Transmission Date
Voucher Indicator
Manual Repair
Return Code
BSB (Transferee FI)
9
11
6
8
3
12
1
1
8
12
12
3
60
6
n
n
n
n
a/n
n
a
n
n
n
n
n
a/n
n
02
02
02
02
02
02
02
02
02
02
02
02
02
02

26
27

12
2
n
n
m
m
Must be the field number of the first field to fail the industry-agreed validation criteria, or the technically
invalid code as set out in the APCS Procedures, Appendix E clause E.7.

F.5
Inserted
effective 1/7/98

Confidential
F.5
Electronic Dishonour Refusal Record - 1012 - total record length 247

Field
Number
Field Name
Field
Size
Attribute
Field
Status
Field Specification
4
2
6
6
3
12
6
21
21
n
n
n
n
n
n
n
a/n
a/n
m
m
02
02
02
02
02
02
02
Must be 1012.
Must be the same as Field 3 in the 1011 Record being refused.
Must be th e same as Field 4 in the 1011 Record being refused.
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Version
BSB (Ledger FI)
BSB (Collecting FI)
Transaction Code
Amount
Nominated Account
Auxiliary Domestic
BSB (Capturing FI)
Transmission Date
Voucher Indicator
Manual Repair
Return Code
BSB (Transferee FI)
9
11
6
8
3
12
1
1
8
12
12
3
60
6
n
n
n
n
a/n
n
a
n
n
n
n
n
a/n
n
02
02
02
02
02
02
02
02
02
02
02
02
02
02

24
25

Refusal Code
12
2
n
n
m
m
Must be a valid industry agreed refusal code as set out in the APCS Procedures, Schedule 11, Rule 3.7.
1
2
3
4
5
6
7
8
9

F.6
Inserted
effective 1/7/98

Confidential
F.6
Technically Invalid Electronic Dishonour Refusal Record - 1017 - total record length 261
Field
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Field Name
Version
BSB (Ledger FI)
BSB (Collecting FI)
Transaction Code
Amount
Nominated Account
Auxiliary Domestic
BSB (Capturing FI)
Transmission Date
Voucher Indicator
Manual Repair
Return Code
BSB (Transferee FI)
Refusal Code
26
27

Field
Size
4
2
6
6
3
12
6
21
21
Attribute
n
n
n
n
n
n
n
a/n
a/n
Field
Status
m
m
02
02
02
02
02
02
02
9
11
6
8
3
12
1
1
8
12
12
3
60
6
12
2
n
n
n
n
a/n
n
a
n
n
n
n
n
a/n
n
n
n
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
02
12
2
n
n
m
m
Field Specification
Must be 1017.

F.7
Inserted
effective 1/7/98

Confidential
F.7
Voucher Required Record - 1510 - total record length 152
Field
Number
Field
Size
Attribute
4
2
6
6
3
12
6
21
21
n
n
n
n
n
n
n
a/n
a/n
m
m
02
02
02
02
02
02
02
Must be 1510.
Must be the same as Field 3 in the related 1010 Record.
10
11
12
13
14
15
16
17

Version
BSB (Ledger FI)
BSB (Collecting FI)
Transaction Code
Amount
Nominated Account
Auxiliary Domestic
BSB (Capturing FI)
Transmission Date
Voucher Indicator
Manual Repair
9
11
6
8
3
12
1
1
n
n
n
n
a/n
n
a
n
02
02
02
02
02
02
02
02

18
Format is CCYYMMDD.
Must contain the next business day in the relevant Region for this record.
19
12
1
2
3
4
5
6
7
8
9
Field Name
Field
Status
Field Specification

F.8
Inserted
effective 1/7/98

Confidential
F.8
Technically Invalid Voucher Required Record - 1515 - total record length 166
Field
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
26
27
Field
Size
Attribute
Field
Status

Version
BSB (Ledger FI)
BSB (Collecting FI)
Transaction Code
Amount
Nominated Account
Auxiliary Domestic
BSB (Capturing FI)
Transmission Date
Voucher Indicator
Manual Repair
4
2
6
6
3
12
6
21
21
n
n
n
n
n
n
n
a/n
a/n
m
m
02
02
02
02
02
02
02
Must be 1515.
9
11
6
8
3
12
1
1
8
12
n
n
n
n
a/n
n
a
n
n
n
02
02
02
02
02
02
02
02
02
02

Technically Invalid Transaction

Identifier
12
Field Name
Field Specification

F.9
Inserted
effective 1/7/98

Confidential
F.9
File Header Record - 9000 - total record length 47
Field
Number
Field Name
Field
Size
Attribute
Field
Status
1
2
3

Version
Transmission Date
4
2
8
n
n
n
m
m
m
BSB (Sending FI)
BSB (Receiving FI)
6
7
8
Date File Created

Time File Created
File Sequence Number
8
6
3
n
n
n
m
m
m
Record Identifier
Field Specification
Must be 9000.
Format of CCYYMMDD.
Date electronic record is exchanged for settlement.
Character positions 1 to 3 must be a valid 2 or 3 digit Institution Identifier issued by APCA (refer to APCA
publication 'BSB Numbers in Australia').
Character positions 1 to 3 must be a valid 2 or 3 digit Institution Identifier issued by APCA (refer to APCA
publication 'BSB Numbers in Australia').
Format CCYYMMDD.
Format is hhmmss.
Must be a unique number within transmission date and counterparty.
The purpose of this field is to match a File Acknowledgment File to the original file it is acknowledging.
Must identify the type of record in this file (eg. 1010, or 1011, etc).

F.10
Inserted
effective 1/7/98

Confidential
F.10
File Acknowledgment Record - 9010 - total record length 101
Field
Number
1
2
3
4
6
7
8
9
10
11
12
13
14
Field Name

Version
Transmission Date
File Credit Total Amount
File Debit Total Amount
File Count of Non-Value Items

File Count of Credit Items
File Count of Debit Items
BSB (Sending FI)
BSB (Receiving FI)
Date File Created
Time File Created
File Sequence Number
Record Identifier
Field
Size
Attribute
Field
Status
4
2
8
18
n
n
n
n
m
m
02
m
18
6
6
6
6
6
8
6
3
4
n
n
n
n
n
n
n
n
n
m
m
m
02
02
02
02
02
02
Field Specification
Must be 9010.
Must be the same as Field 3 in the 9000 File Header Record being acknowledged.
Must be zero if the file is being rejected.
Must be the same as Field 3 in the 9090 File Total Record if the file being
accepted.
.
accepted.
.
accepted.
Must be zero if the file is being rejected,
accepted.
accepted.
acknowledged is being

F.11
Inserted
effective 1/7/98

Confidential
F.11
File Total Record - 9090 - total record length 60
Field
Number
Field Name
Field
Size
Attribute
Field
Status
Field Specification
1
2

Version
4
2
n
n
m
m
Must be 9090.
File Credit Total Amount
18
Must equal the accumulated value of Credit Items in the file.

Must equal zero if an empty file.
Must equal zero if a not for value file.
File Debit Total Amount
18
Must equal the accumulated value of Debit Items in the file.

File Count of Non-Value Items
Must equal the accumulated number of non-value Items in the file.

Must equal one if an acknowledgment file.
File Count of Credit Items
Must equal the accumulated number of Credit Items in the file.

File Count of Debit Items
Must equal the accumulated number of Debit Items in the file

The next page is G1.1

F.12
Inserted, effective
1/7/98.
Appendix G1 - Gazette Notice

(Schedule 11 Rule.1.1)
Appendix G1 Gazette Notice
NOTICE BY A FINANCIAL INSTITUTION SPECIFYING A PLACE AS A DESIGNATED

PLACE FOR THE PURPOSES OF THE CHEQUES ACT 1986
Last amended
effective 30/10/02
TAKE NOTICE that [insert full name of the financial institution giving the notice] hereby specifies:
Last amended
effective 30/10/02
(a)
Last amended
effective 30/10/02
[(i) insert address of the place to be designated, not being the address of a post office or bag] as a
designated place for the purposes of subsection 62(1)(c)(ii) of the Cheques Act 1986 in relation
to the following classes of cheques:
[(ii) identify each of those classes with reasonable certainty];
(b)
[identify the days and the hours of each of those days] as the times when the financial institution
will be open for business at that designated place; and
Last amended
effective 30/10/02
(c)
[identify the means] as the means by which communications may be made to the financial
institution at that designated place.
Last amended
effective 30/10/02
THIS NOTICE has effect on and from [insert "the day on which it is published in the Commonwealth of
Australia Gazette" or, if this notice is to have effect on a later date, insert that date].
Publication of this notice was authorised by [insert full name and designation of an officer of the financial
institution giving the notice who is authorised by the financial institution to authorise publication of this
notice - the officer's signature is not required] on [insert date].
Last amended
effective 30/10/02
Standard Entries Required

(a)(i)
Must contain the address of the drawee Institutions data centre. For an Appointor in any Region
this will be the address of the data centre of its Clearing Representative for that Region.5
(ii)
The classes of Cheques will be "All Cheques that the APCS Regulations and Procedures allow to
be presented by means other than by exhibition." Financial institutions may specify the classes
of Cheques, identified by drawee BSB Number and/or the region in which the Cheque was
negotiated, to be sent to the address shown in (a)(i).
(b)
The days and times specified will be "The days and times specified in the APCS Regulations and
Procedures are specified": see Schedule 11, Rule 1.6.
(c)
The means specified will be "The means specified in the APCS Regulations and Procedures are
specified".
Last amended
effective 25/7/08
Notes: 5 a drawee Participating Member will require more than one notice if it has different Clearing
Representatives in different Regions.

G1.1
[ABN 12 055 136 519]

Inserted, effective
1/7/98.
Appendix G2 - Gazette Notice

(Schedule 11 Rule.1.1)
Appendix G2 Gazette Notice
NOTICE BY A FINANCIAL INSTITUTION SPECIFYING A PLACE AS A DESIGNATED

EXHIBITION PLACE FOR THE PURPOSES OF THE CHEQUES ACT 1986
Last amended
effective 30/10/02
TAKE NOTICE that [insert full name of the financial institution giving the notice] hereby specifies:
Last amended
effective 30/10/02
(a)
Last amended
effective 30/10/02
[(i) insert address of the place to be designated, not being the address of a post office or bag] as
a designated exhibition place for the purposes of subsection 62(9)(b)(ii) of the Cheques Act 1986
in relation to the following classes of cheques:
[(ii) identify each of those classes with reasonable certainty];
(b)
[identify the days and the hours of each of those days] as the times when the financial institution
will be open for business at that designated exhibition place; and
Last amended
effective 30/10/02
(c)
[identify the means] as the means by which communications may be made to the financial
institution at that designated exhibition place.
Last amended
effective 30/10/02
THIS NOTICE has effect on and from [insert "the day on which it is published in the Commonwealth of
Australia Gazette" or, if this notice is to have effect on a later date, insert that date].
Publication of this notice was authorised by [insert full name and designation of an officer of the financial
institution giving the notice who is authorised by the financial institution to authorise publication of this
notice - the officer's signature is not required] on [insert date].Entries Required
Last amended
effective 30/10/02
Standard Entries Required

(a)(i)
Must contain the address of the drawee Institutions designated place for exhibition, following a
voucher request.
(ii)
Financial institutions may specify the classes of Cheques, identified by drawee BSB Number
and/or the region in which the Cheque was negotiated, to be sent to the address shown in (a)(i).
(b)
Drawee Institution must specify times exhibition pursuant to a voucher request will be accepted
at the address it has designated in (a)(i).
(c)
The means specified will be exhibition.
Last amended
effective 25/7/08
The next page is H.1

G2.1
[ABN 12 055 136 519]

Deleted effective
24/3/03
Appendix H Discontinued Exception Items List
Appendix H DISCONTINUED EXCEPTION ITEMS LIST
Deleted effective 24 March 2003
The next page is I.1

H.1
[ABN 12 055 136 519]


Appendix I Destination BSB Numbers for Encoding Overseas On-Demand AUD Drafts
Without Pre-indicated Details (Schedule 4, Rules 3.8(c)(i) and 3.8(d)(iv))
Appendix I
Last amended
effective 18/11/08
DESTINATION BSB NUMBERS FOR ENCODING OVERSEAS ON-DEMAND

AUD DRAFTS WITHOUT PRE-INDICATED DETAILS
Appendix I is located separately
The next page is J.1
Originally circulated as CS1/Genl/008.03, later incorporated in version E015

I.1
[ABN 12 055 136 519]
Inserted,
effective 1/7/98.
Appendix J - Electronic Presentment & Dishonour Holiday Calendar Specifications

(Schedule 11)
Appendix J
ELECTRONIC PRESENTMENT & DISHONOUR HOLIDAY CALENDAR

SPECIFICATIONS
Overview
J.1
The holiday calendar is used by Institutions to determine holidays that will impact on the time
limits imposed in Schedule 11 on the sending of electronic dishonours, electronic dishonour
refusals and voucher required messages.
The holiday calendar (and any revised editions) are published from time to time as determined
by the Management Committee in accordance with Schedule 11, Rule 7. The holiday calendar
will be published as an electronic file in the format described below.
Last amended,
effective 17/6/99
Holiday Calendar File and Record Formats

J.2
The holiday calendar file consists of one fixed length header, one or more BSB holiday detail
records, one or more holiday description detail records and one trailer record. The file will be
delivered to all APCS members on a floppy disk in text format, or other electronic means.
J.3
The following standard rules apply to the holiday calendar record layouts below
z
z
z
z
a/n indicates an alphanumeric field. Alphanumeric fields will be left justified and blank
filled. Valid values are all EBCDIC characters.
n indicates a numeric field. Numeric fields will be right justified and zero filled. Valid
values are 0 through 9.
If an alphanumeric field is not present, it will be blank filled.
If a numeric field is not present, it will be zero filled.
Fillers unless specified will be space filled.
Header Record Format

J.4
There is one header record containing information about the holiday calendar file. The header
record has a record type identifier value of 00, and is always at the beginning of the file.
The header record shows:
z
z
z
the period to which the holiday calendar pertains,

the date and time it was created, and
the version number of the holiday calendar file
Field
Number
Field Name
Field
Size
Attribute
Field Specification
Record Type
Identifier
Must be 00
Version
Currently set to 01 to indicate the first version of the

file. This is allocated by APCA and will change if the
file format or record format is modified.
Filler
a/n
From Date
from
Ccyymmdd

J.1
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

(Schedule 11)
Field
Number
Field Name
Field
Size
Attribute
Field Specification
Filler
a/n
To Date
ccyymmdd
Filler
a/n
created
Creation Date
ccyymmdd
Creation Time
a/n
hh:mm
10
Filler
10
a/n
Reserved for future use.
Total
to
60
Detail Records
J.5
There are two detail records containing holiday information: the BSB holiday detail record and
the holiday description detail record. These detail records have record type identifier of 01 and
02 respectively.
BSB Holiday Detail Record Format

J.5.1
The existence of a BSB holiday detail record ( record type identifier of 01) signals that a BSB
prefix is not open for business on a particular date. If there are no 01 BSB holiday detail
records for a particular date, then all BSB prefixes, and therefore all Institutions, are open for
business on that date.
Field
Number
Field Name
Field
Size
Attribute
Field Specification
Record Type
Identifier
Must be 01
Holiday Date
Ccyymmdd
BSB Prefix
Must be the first three digits of any BSB issued by

APCA (refer to APCA publication 'BSB Numbers
in Australia'), or all zeros.
All zeros is used to indicate that all BSB prefixes
are on holiday on the date.
4
Total
Filler
17
a/n
30

J.2
[ABN 12 055 136 519]

Inserted,
effective 1/7/98.

(Schedule 11)
Holiday Description Detail Record Format

J.5.2
The holiday description detail record ( record type identifier of 02) provides a description for
each holiday date in the holiday calendar file.
Field
Number
Field Name
Field
Size
Attribute
Record Type
Identifier
Must be 02
Holiday Date
ccyymmdd
Holiday Date
Description
30
a/n
Contains the name of the holiday.
Filler
10
a/n
Total
Field Specification
50
Trailer Record Format

J.6
There is one trailer record with a record type identifier value of 99. The trailer record contains
a total of the number of the BSB Holiday detail records and a count of the number of unique
holiday dates.
Field
Number
Field Name
Record Type
Identifier
Must be 99
Number of BSB
Holiday Detail
Records
Contains a count of the number of BSB holiday detail

records
Number of
Holiday
Description
Detail Records
Contains a count of the number of unique holiday days.
Total
Field
Size
Attribute
Field Specification
30
The next page is K.1

Appendix K (except for sections 1, 2 and 5, and the indices to sections 3 and 4) is Confidential

J.3
[ABN 12 055 136 519]


Appendix K Disabling Events Guidelines
Section 1 Executive Summary
Sections 3 and 4, except for the respective Index, are Confidential
Disabling Events Guidelines
Section 1
Executive Summary
Section 2
Methodology
Section 3
Individual Processes For-Value Paper Exchanges

(Confidential except for the Index)
Section 4
Individual Processes - For Electronic Exchanges

(Confidential except for the Index)
Section 5
Disabling Events
Prepared by MC1 Panel of Experts, November 1997 (dissolved by resolution of MC1 with effect from
22 October 2012)
Reviewed by CS1 Contingency Working Group and approved by MC1, May 2002
Reviewed and approved by MC1, November 2006

K.1
[ABN 12 055 136 519]


Section 1 Executive Summary
Sections 3 and 4, except for the respective Index, are Confidential
1.
OVERVIEW
These guidelines were initially prepared by a panel of experts convened by the Management Committee
(Panel of Experts) and endorsed by the Management Committee in 1997. These Guidelines have been
reviewed by the CS1 Contingency Working Group and were further endorsed by MC1 in May 2002. They
are not mandatory rules but intended to guide the Chief Executive Officer when exercising his discretion to
determine what action is to be taken in response to a Disabling Event where settlement capabilities are
unaffected (that is, a Disabling Event contemplated in Schedule 5, Rule 21).
Last amended
effective 22/10/12
Each Disabling Event should be treated on its merits, however the following three general principles are
consistent with the stated aim and underlying policy of Schedule 5, Rule 1.
1.1
The principle is that Disabled Participating Members should only ever be excused from attending
exchanges if it is physically impossible to do so2. The prospect of greater demand for liquidity because of
one-way exchanges is not a reason to be excused from attending exchanges.
1.2
Settlement
Unless specifically deferred (see Schedule 5, Rule 33) settlement will not be affected by the occurrence of a
Disabling Event, that settlement will always be effected on the exchange balances. Where this results in
larger than normal settlement obligations any excessive liquidity demands which arise should be funded
from market operations (including RBA repos) or as otherwise directed by Reserve Bank of Australia.
1.3
Interest
Except for circumstances specifically covered in Schedule 4, Rule 4, interest will be payable (as normal) on
exchange balances. However, where other Participating Members are asked to hold Items (that would have
been exchanged without a Disabling Event), those Items must be fully batched, totalled and clearly date
labelled, and when actually exchanged, interest will be payable from those label dates until the date that
settlement is effected. For the avoidance of doubt, no interest is payable on any Items held unexchanged by
the Disabled Participating Member.
The type of Disabling Event referred to Schedule 5, Rule 3 contemplates an inability to settle and suggests a deferral of
settlement as an industry response. This is a separate, though related, project.
Inability to access the exchange premises by all parties is a different matter. In this occurrence a contingency site is used.
This rule will be considered in a subsequent project.

K.2
[ABN 12 055 136 519]


Section 2 - Methodology
2.
METHODOLOGY
2.1
Identifying the Processes Affected
After identifying the principles to be followed in a Disabling Event, the different processes that can be
affected by industrial action and/or processing difficulties have been identified. A separate section has
been provided for for-value paper exchanges and for electronic value exchanges. There are many processes
which are exactly the same for both and not each process will be relevant to all Members.
Many of the individual processes require no industry response other than the usual application of the
standard clearing rules. Where this is the case there is no industry response recommended, apart from as
normal . These processes have, however, been retained in the guidelines for completeness.
2.2
Effects and Industry Response to Each Disabled Process
For each process, the internal and external effects on clearing and settlement have been identified and the
appropriate industry response. In each case, the industry response assumes that only that process is
disabled. Where more than one process is disabled, the industry response will include all of the industry
responses recommended for those disabled processes.
2.3
Questions for the Disabled Participating Member
As a result of the application of the principles, responses to the following questions by the Disabled
Participating Member will provide the basis of the industry response, once the nature of the Disabling
Event has been ascertained.
a/
b/
c/
Can I attend the physical exchanges?

Can I exchange electronic data as required in the APCS Procedures?4
Am I able to process my outward dishonours as normal?
As outlined in the next section of this paper, all other processes (if affected) do not require an industry
response other than the application of the industry rules (including approved fallback rules).
The type of Disabling Event referred to Schedule 5, Rule 3 contemplates an inability to settle and suggests a deferral of
settlement as an industry response. This is a separate, though related, project.

K.3
[ABN 12 055 136 519]


Section 3 Individual Processes - For Value Paper Exchanges
3.
INDIVIDUAL PROCESSES FOR-VALUE PAPER EXCHANGES
3.1
Accept Deposits
3.2
Transport from Branches to Processing Centre(s)
3.3
Proof on the Front of Items
3.4
Providing Exchange Totals
3.5
Amount Encoding Outward Paper
3.6
Sort Outward For-Value Paper
3.7
Transport to/from Processing Centre(s) from/to Exchange(s) (For-Value Paper)
3.8
Capture Inward Items
3.9
Apply Inward Items to Accounts
3.10
Sort Inward Paper at Processing Centre(s)
3.11
Transport Inward Paper from Processing Centre(s) to Dishonour Processing/Decision Points
3.12
Generate Outward Dishonours
3.13
Apply Inward Dishonours to Accounts
Last amended
effective 30/8/02
Last amended
effective 30/8/02
The remainder of Section 3 is Confidential

K.4
[ABN 12 055 136 519]


3.1
Accept Deposits
Internal effect:
Unable to accept deposits.
External effect:
Less than normal outward debits, causing a higher than normal demand for liquidity.
The Panel of Experts considered the option of excusing the Disabled Participating Member from attending
exchanges to avoid the extra liquidity demand. This would entail the other Institutions holding the
Disabled Institutions Items and exchanging them at the completion of the Disabling Event. This was seen
to be undesirable and at odds with the underlying aim of operating as close to normally as possible.
Accordingly the Disabled Participating Member should still attend the exchanges to receive inward Items
and exchange outward Items (if any). These exchanges would be settled in the usual manner, and the costs
of any extra liquidity requirement would be met by the Disabled Participating Member.
Summary:
Activity:
As normal, the Disabled Participating Member should still attend exchanges.
Settlement:
As normal, settlement of the exchanges should still take place at 9.00am next
business day.
Interest:
As normal, payable on exchange balances.
3.2
Transport from branches to processing centre(s)
Internal effect:
Unable to transport for outward processing.
External effect:
Summary:
Activity:
Settlement:
As normal, settlement of the exchanges must still take place at 9.00am next business
day.
Interest:
3.3
Proof on the Front of Items
Internal effect:
Unable to place stamp on the front of the Item.
External effect:
Drawee Institution does not have correct information to dishonour the Item. Less
than normal outward debits, causing a higher than normal demand for liquidity.

K.5
[ABN 12 055 136 519]


This issue concerns the disabling of automated stamping of the front of the Item. This stamp shows the
Drawee Institution the correct destination for a dishonour of the Item. The Panel of Experts agreed that this
information is vital to the Drawee Institution and that Items must not be exchanged without this stamp.
Where automated stamping is not available, other means such as manual stamping must be applied prior to
exchange.
Summary:
Activity:
As normal, the Disabled Participating Member should still apply a stamp indicating
the place for dishonour prior to exchange.
Settlement:
business day.
Interest:
3.4
Providing Exchange Totals
Internal effect:
Unable to calculate outward exchange totals.
External effect:
Other Institutions need to calculate inward value.
The Panel of Experts agreed that the solution in this scenario is that the Items should still be exchanged.
The settlement values would need to be calculated by the inclearing Participating Member who would need
to inform the outclearing Participating Member of the values. Of course if the outclearing Participating
Member has a disagreement with the settlement figure provided, Rule 5.2E of Schedule 4 should be
invoked.
Amended
effective 22/10/12
In reconciliation of any disagreement, the non-Disabled Participating Members should assist the Disabled
Participating Member (eg make available records, as necessary).
Summary:
Activity:
As normal, the Disabled Participating Member should still attend exchanges, in this
case without exchange totals.
Settlement:
business day.
Interest:
3.5
Amount Encoding Outward Paper
Internal effect:
Unable to comply with encoding requirements.
External effect:
If Items are not exchanged unencoded, less than normal outward debits, causing a
greater demand for liquidity. If Items are exchanged unencoded, there may be an
impact on the non-Disabled Participating Members to process Items on the same
value day.
The Procedures require outward Debit Items to be amount encoded. It is understood that bilateral
arrangements on amount encoding of paper during a Disabling Event may be entered into.

K.6
[ABN 12 055 136 519]


Summary:
Activity:
As normal, the Disabled Participating Member should encode outward Debit Items,
unless otherwise bilaterally agreed.
Settlement:
business day.
Interest:
As normal, payable on exchange balances. Any bilateral agreement should take into
account interest compensation should float arise from the inability to process on the
same value day.
3.6
Sort Outward For-Value Paper
Internal effect:
Unable to outward clear paper Items.
External effect:
Less than normal outward debits, causing a greater than normal demand for
liquidity.
Unsorted Items cannot be exchanged in the usual manner. However, other bilateral agreements may be
reached for exchanging the Items, they are:
z
a bilateral agreement where a non-Disabled Participating Member would accept all of the
Disabled Participating Members unsorted Items, sort them, and exchange the Items in the
Disabled Participating Members name to the Drawee Institution (or its Appointor), or
a bilateral agreement where a non-Disabled Participating Member would accept all of the
Disabled Participating Members unsorted Items, sort them, and deliver the Items back to the
Disabled Participating Member who would exchange the Items to the Drawee Institution (or its
Appointor).
The Disabled Participating Member should still attend the exchanges even if only to accept inward
clearings.
Summary:
Activity:
As normal, the Disabled Participating Member should attend exchanges, even if only
to accept inward Items.
Settlement:
day.
Interest:
As normal, payable on exchange balances. Any bilateral agreement should take into
account interest compensation should float arise from the inability to process on the
same value day.

K.7
[ABN 12 055 136 519]


3.7
Transport to/from Processing Centre(s) from/to Exchange(s) (For-Value Paper)
Internal effect:
Unable to clear any for-value paper Items. Unable to meet APCS requirement on
attendance at exchanges. (Contingency transport arrangements may well be in place
in most cases, if this is the only process affected.)
External effect:
No value paper clearings.
Last amended
effective 30/8/02
This situation concerns an event that will not allow the Disabled Participating Member to attend the
exchanges (not where the exchange site is unavailable and the contingency site used). An example would
be if the Disabled Participating Member has no feasible way of transporting Items to and from the
exchanges. In these instances non-Disabled Participating Members have the option of delivering their work
to the Disabled Participating Member at its premises.
Last amended
effective 30/8/02
The Panel of Experts agreed that the appropriate industry response is:
z
to allow the Disabled Participating Member to be excused from attending exchanges,
to request the Disabled Participating Member complete and forward a PDN (see Appendix M) to
the Company advising of the Disabling Event,
that upon receipt of the PDN the Company will issue the PDN to all Participating Members
advising that there will be no for-value paper clearings from the Disabled Participating Member,
Inserted
effective 30/8/02
the PDN may be used:
Inserted
effective 30/8/02
to request all Participating Members to hold all Items to be exchanged to the Disabled
Participating Member (unless they can be delivered to the Disabled Participating
Member),
to request that those undelivered exchanges are held in fully batched and totalled form
and that each batch is clearly date labelled,
to issue a warning regarding delayed dishonours (from the introduction of electronic

presentment and dishonours, only for dishonour of Items exchanged via the for-value
paper exchanges) from the Disabled Participating Member, and its outward clearing
Appointors,
Last amended
effective 30/8/02
Inserted
effective 30/8/02
to require that interest compensation is paid to the Participating Members that held the Disabled
Participating Members exchanges in the requested manner,
this interest compensation would be payable when the Items are exchanged,
the interest accrues from the date labelled on each batch until the date that the Items are
exchanged,
no interest compensation would be due to the Disabled Participating Member because of Items it
was unable to exchange.

K.8
[ABN 12 055 136 519]


Summary:
Activity:
Excused from attending exchanges, non-Disabled Participating Members should

hold undelivered work.
Settlement:
As normal, settlement of any exchanges should still take place at 9.00am next
Business Day.
Interest:
As normal, payable on exchange balances. Where exchange of work with the

Disabled Participating Member does not occur, interest compensation should be due
to the non- Disabled Participating Members by the Disabled Participating Member.
3.8
Capture Inward Items
Internal effect:
Unable to capture Items not exchanged electronically.
External effect:
Unable to reconcile for settlement.
If reconciliation of inward values is not possible then, the settlement values calculated by the outclearing
Participating Member would need to be accepted. The inclearing Participating Member would need to be
informed of these figures. If the inclearing Participating Member has a disagreement with the settlement
figure provided, the Rule 5.2E of Schedule 4 would be invoked.
Amended
effective 22/10/12
Summary:
Activity:
Amended
effective 22/10/12
As normal, the Disabled Participating Member should still attend exchanges, and
either accept outward clearers exchange totals or invoke Rule 5.2E of Schedule 4.
Settlement:
As normal, settlement of the exchanges must still take place at 9.00am next Business
Day.
Interest:
3.9
Internal effect:
Unable to apply Items to accounts for dishonour decision-making.
External effect:
Delay in dishonour processing.
If application of inward Items to accounts is disabled and there will be a delay in dishonour processing, the
appropriate industry response is:
Last amended
effective 30/8/02
that the Disabled Participating Member complete and forward a PDN (see Appendix M) to the
Company advising of the Disabling Event,
Last amended
effective 30/8/02
that upon receipt of the PDN the Company will issue the PDN to all Participating Members
advising of delayed dishonours from the Disabled Participating Member,
Inserted
effective 30/8/02
no inter-Institution compensation would apply in this instance.

K.9
[ABN 12 055 136 519]


Summary:
Activity:
As normal, the Disabled Participating Member should still attend exchanges. NonDisabled Participating Members should be advised on any delay in dishonour
processing.
Settlement:
business day.
Interest:
3.10
Internal effect:
Unable to send paper Items to dishonour points.
External effect:
If inward sorting capability is disabled and there will be a delay in dishonour processing, the appropriate
industry response is:
Last amended
effective 30/8/02
Last amended
effective 30/8/02
that upon receipt of the PDN, the Company will issue the PDN to all Participating Members
Summary:
Activity:
processing.
Settlement:
business day.
Interest:
3.11
Inserted
effective 30/8/02
Transport Inward Paper from Processing Centre(s) to Dishonour Processing/Decision

Points
Internal effect:
Depending on internal arrangements, unable to make pay/dishonour decision.
External effect:
If transport of inward paper from processing centre(s) to branches/decision points is disabled and there will
be a delay in dishonour processing, the appropriate industry response is:
Last amended
effective 30/8/02
Last amended
effective 30/8/02
Inserted
effective 30/8/02

K.10
[ABN 12 055 136 519]


Summary:
Activity:
processing.
Settlement:
business day.
Interest:
3.12
Internal effect: Unable to process outward dishonours.

External effect: Delay in outward dishonour processing.
Last amended
effective 30/8/02
If dishonour processing is disabled, the appropriate industry response is:

z
Last amended
effective 30/8/02
Inserted
effective 30/8/02
that non-Disabled Institutions to accept dishonours from the Disabled Participating Member that
may otherwise be refused under Schedule 10, Rule 2.2.7,
Last amended
effective 30/8/02
Summary:
Activity:
As normal, the Disabled Participating Member should still attend exchanges. NonDisabled Participating Members to be advised on any delay in dishonour processing.
Non-Disabled Institutions should accept dishonours from the Disabled Participating
Member that may otherwise be refused under Schedule 10, Rule 2.2.7.
Settlement:
business day.
Interest:
3.13
Internal effect:
Unable to process inward dishonours.
External effect:
None.
The Disabled Participating Member is the main party affected in this situation in that its funds hold (aka
clear funds policy) period may be impacted. Non-Disabled Institutions will only be affected if the Disabled
Participating Member needs to refuse an inward dishonour and is unable to do so within the required time.

K.11
[ABN 12 055 136 519]


Non-Disabled Institutions should take this into account when assessing whether the Disabled Participating
Member has complied with the time restrictions for refusal.
Summary:
Activity:
As normal, the Disabled Participating Member should still attend exchanges. NonDisabled Institutions should take into account the Disabled Participating Members
difficulty when assessing whether the Disabled Participating Member has complied
with the time restrictions for refusal.
Settlement:
business day.
Interest:
As normal, payable on exchange balances

K.12
[ABN 12 055 136 519]


Section 4 Individual Processes - For Electronic Exchanges Contents
4.
INDIVIDUAL PROCESSES FOR ELECTRONIC EXCHANGES CONTENTS
4.1
Accept Deposits
4.2
4.3
[Deleted]
4.4
Provide Exchange Totals
4.5
Amount Encode Outward Paper
4.6
Capture Outward Items
4.7
Sort Outward Not-For-Value Paper
4.8
Transport to/from Processing Centre(s) from/to Exchange(s) (Not-For-Value Paper)
4.9
Capacity to Send Files
4.10
Capacity to Receive files
4.11
Acknowledge Inward Files
4.12
Reconciliation of Inward Items
4.13
4.14
4.15
Transport Inward Paper from Processing Centre(s) to Dishonour Processing/Decision Points
4.16
4.17
Deleted
effective 15/01/07
The remainder of section 4 is confidential

K.13
[ABN 12 055 136 519]


4.1
Accept Deposits
Internal effect:
Unable to accept deposits.
External effect:
Summary:
Activity:
Settlement:
business day.
Interest:
4.2
Internal effect:
Unable to transport for outward processing.
External effect:
exchanges to avoid the extra liquidity demand. This would entail the other institutions holding the
Summary:
Activity:
Settlement:
business day.
Interest:
4.3
Deleted
effective 15//01/07
[Deleted]

K.14
[ABN 12 055 136 519]


4.4
Provide Exchange Totals (on Not-For-Value Paper Exchanges)
Internal effect:
Unable to calculate outward exchange totals.
External effect:
Other Institutions need to calculate inward value.
Last amended
effective 30/8/02
The Panel of Experts agreed that the solution in this scenario is that the Items should still be exchanged.
The settlement values are agreed on the electronic exchanges. Any discrepancy arising from reconciliation,
if any, of the paper to the electronic exchanges, would be resolved by sending an adjustment.
Summary:
Activity:
As normal, the Disabled Participating Member should still attend exchanges, in this
case without exchange totals.
Settlement:
business day.
Interest:
4.5
Amount Encode Outward Paper
Internal effect:
Unable to comply with encoding requirements, cannot exchange outward Items.
External effect:
Less than normal outward debits, causing a greater demand for liquidity. Under
electronic presentment and dishonours, if the outward clearing Participating Member
can generate the correct message formats, without amount encoding the paper,
bilateral agreements on exchanging unencoded not-for-value paper may be reached.
Last amended
effective 30/8/02
The Procedures require outward Debit Items to be amount encoded. It is understood that bilateral
arrangements on amount encoding of paper during a Disabling Event may be entered into.
Summary:
Activity:
As normal, the Disabled Participating Member should encode outward Debit Items,
unless otherwise bilaterally agreed.
Settlement:
business day.
Interest:
4.6
Capture Outward Items
Internal effect:
Unable to generate outward files to specification.
External effect:
Fallback procedures (to value paper exchanges) are implemented.
No other industry response required. The outward clearing Participating Members knows that it has
exchanged paper only and accordingly will be aware that its usual funds hold (aka clear funds policy)
period may be impacted.

K.15
[ABN 12 055 136 519]


Summary:
Activity:
The Disabled Participating Member exchanges its outward Items via the for-value
paper exchanges.
Settlement:
business day.
Interest:
4.7
Sort Outward Not-For-Value Paper
Internal effect:
Unable to outward clear not-for-value paper Items.
External effect:
The Drawee Institutions will not have the vouchers when they would otherwise
expect them.
Unsorted Items cannot be exchanged.
Last amended
effective 30/8/02
The outclearing Participating Member may transmit the cheque details, with the delayed indicator or (in a
bilateral agreement) may use another Participating Member to outsort the not-for-value paper. Those Items
that the Drawee Institution requires to be exhibited to complete due presentment must still be treated in the
usual manner for a delayed voucher5. Drawee Institutions may use the extra day available to delay sending
a voucher required message (allowable when the presentment message contains the delayed indicator) to
avoid excess returns with the answer Item-not-yet-to-hand.
Last amended
effective 30/8/02
Summary:
Activity:
As normal, the Disabled Participating Member should transmit the value and attend the
exchanges. The Items sent should contain the delayed indicator for those not-for-value vouchers that are
delayed.
Settlement:
As normal, settlement of the exchanges should still take place at 9.00am next business day.
Interest:
4.8
Transport to/from Processing Centre(s) from/to Exchange(s) (Not-For-Value Paper)
Internal effect: Unable to outward clear not-for-value paper Items.

External effect: The Drawee Institutions will not have the vouchers when they would otherwise expect
them.
This situation concerns an event that will not allow the Disabled Participating Member to attend the notfor-value paper exchanges (not where the exchange site is unavailable and the contingency site used). An
example would be if the Disabled Participating Member has no feasible way of transporting Items to and
from the exchanges.
5
Note, on Day2, if the Drawee Institution does not have the paper at the place where it is required, it can send a nfv voucher
required message signalling that the cheque has not yet been duly presented.

K.16
[ABN 12 055 136 519]


The outclearing Participating Member will transmit the cheque details, with the delayed indicator and/or (in
a bilateral agreement) may use another source to transport the paper. Those Items that the Drawee
Institution requires to be exhibited to complete due presentment must still be treated in the usual manner for
a delayed voucher6. Drawee Institutions may use the extra day available to delay sending a voucher
required message (allowable when the presentment message contains the delayed indicator) to avoid excess
returns with the answer Item-not-yet-to-hand.
Summary:
Activity:
As normal, the Disabled Participating Member should transmit the value and attend
the exchanges. The Items sent should contain the delayed indicator for those notfor-value vouchers that are delayed.
Settlement:
business day.
Interest:
4.9
Capacity to Send Files
Internal effect:
Unable to outward clear electronic Items.
External effect:
Fallback to contingency procedures and implement contingency exchange

arrangements tabled in Contingency Exchange Arrangements Matrix set out in
Appendix O.
Last amended
effective 30/8/02
As transmissions are via bilateral links, not necessarily all transmissions will be disabled. This is not a
Disabling Event as the contingency procedures are contained in Schedule 11. It is
included solely for completeness.
Last amended
effective 30/8/02
The Disabled Participating Member(s) involved will be aware of any delay caused by implementation of
contingency procedures (ie the time differential between primary exchange
procedures and contingency procedures) and will need to apply this knowledge to its
funds hold (aka clear funds policy) procedures.
Last amended
effective 30/8/02
The Disabled Participating Member should recommence sending outward files as soon as possible and must
exercise care that it does not duplicate any value messages or for-value paper
exchanges.
Last amended
effective 30/8/02
As files include presentment, dishonour, voucher required and refusal records, the appropriate industry
response is:
z
advising of delayed dishonours from the Disabled Participating Member.
Last amended
effective 30/8/02
Inserted
effective 30/8/02
6
Note, on Day2, if the Drawee Institution does not have the paper at the place where it is required, it can send a nfv voucher
required message signalling that the cheque has not yet been duly presented.

K.17
[ABN 12 055 136 519]


Summary:
Activity:
Implement contingency procedures as documented in the Contingency Exchange

Arrangements Matrix set out in Appendix O. Non-Disabled Participating Members
to be advised of impact on the timing of electronic dishonours from the Disabled
Settlement:
business day.
Interest:
4.10
Last amended
effective 30/8/02
Capacity to Receive Files
Internal effect:
Unable to inward clear electronic Items.
External effect:
Fallback to contingency procedures and implement contingency exchange

arrangements as documented in the Contingency Exchange Arrangements Matrix set
out in Appendix O.
Last amended
effective 30/8/02
As transmissions are via bilateral links, not necessarily all transmissions will be disabled. This is not a
Disabling Event as the contingency procedures are contained in Schedule 11. It is included solely for
completeness.
Last amended
effective 30/8/02
The Disabled Participating Member will be aware of any delay caused by implementation of contingency
procedures, and in respect of inward dishonours and voucher required files, will need to apply this
knowledge to its funds hold (aka clear funds policy) procedures. Non-Disabled Participating Members will
need to be advised if delays to the Disabled Participating Members outward dishonour and voucher
required files will occur because of implementation of the contingency procedures in respect of inward
presentment files, and will need to apply this knowledge to their funds hold (aka clear funds policy)
procedures.
Last amended
effective 30/8/02
The Disabled Participating Member should recommence receiving inward files as soon as possible and
must exercise care that it does not accept any duplicate value messages.
As files include presentment, dishonour, voucher required and refusal records, the appropriate industry
response is;
z
advising of delayed dishonours from the Disabled Participating Member.
Summary:
Activity:
Implement Schedule 11 contingency procedures. Non-Disabled Participating

Members to be advised of impact on the timing of electronic dishonours from the
Disabled Participating Member.
Settlement:
business day.
Interest:

K.18
Last amended
effective 30/8/02
Inserted
effective 30/8/02
Last amended
effective 30/8/02
[ABN 12 055 136 519]


4.11
Acknowledge Inward Files
Internal effect:
Unable to acknowledge and indicate acceptance/rejection inward transmissions.
External effect:
Sending Institution will not know if transmission has been successful or know
correct bilateral settlement position.
Appendix E states that if the Sending Institution does not receive an acknowledgement within 30 minutes
of sending the transmission it must contact the Receiving Institution to find out the reason.
If, because of the Disabling Event, the Receiving Institution cannot acknowledge any of its inward files it
should accept the settlement values provided by the Sending Institutions. Of course if the Receiving
Institution has a legitimate disagreement with the settlement figure provided, Rule 5.2E of Schedule 4
would be invoked.
Amended
effective 22/10/12
The Receiving Institution would need to advise whether there will be any delay of dishonour processing.
Delays would be dependant on when acknowledgment ability is restored.
Summary:
Activity:
Receiving Institution should receive files as normal, and accept the Sending
Institutions settlement position. Non-Disabled Participating Members should be
advised on any delay in dishonour processing.
Settlement:
business day.
Interest:
4.12
Reconciliation of Inward Items
Internal effect:
Unable to inspect inward files to check for-value totals.
External effect:
Unable to reconcile for settlement.
If reconciliation of inward values is not possible then, the settlement values calculated by the sending
Participating Member would need to be accepted. The receiving Participating Member would need to be
informed of these figures. If the Participating Member has a disagreement with the settlement figure
provided, Rule 5.2E of Schedule 4 would be invoked.
Last amended
effective 30/8/02
Amended
effective 22/10/12
Summary:
Activity:
Amended
effective 22/10/12
As normal, the Disabled Participating Member should still accept exchanges, and
either accept outward clearers exchange totals or invoke Rule 5.2E of Schedule 4.
Settlement:
day.
Interest:

K.19
[ABN 12 055 136 519]


4.13
Internal effect:
Unable to apply Items to accounts for dishonour decision-making.
External effect:
If application of inward Items to accounts is disabled and there will be a delay in dishonour processing, the
appropriate industry response is:
z
Summary:
Activity:
Last amended
effective 30/8/02
As normal, the Disabled Participating Member should still attend exchanges. NonDisabled Participating Members to be advised on any delay in dishonour processing.
Settlement:
business day.
Interest:
4.14
Last amended
effective 30/8/02
Sort Inward (nfv) Paper at Processing Centre(s)
Internal effect:
Unable to send the required paper Items to dishonour points.
External effect:
It is noted that the actual cheque is not necessarily required for presentment once a drawee Institution has
gazetted that it would accept presentment by particulars.
If inward sorting capablility is disabled and there may be a delay in dishonour processing depending on
which physical Items are required to be exhibited, the appropriate industry response is;
z
no inter-Institution compensation will apply in this instance.
Summary:
Activity:
Settlement:
Last amended
effective 30/8/02
Inserted
effective 30/8/02
processing.

K.20
[ABN 12 055 136 519]


business day.
Interest:
4.15
Transport Inward Paper from Processing Centre(s) to Dishonour Processing/Decision

Points
Internal effect:
Depending on internal arrangements, unable to make pay/dishonour decision for

Items required for exhibition.
External effect:
More than usual Item-not-yet-to-hand answers.
It is noted that the delay will only be for those Items that are required for exhibition, and accordingly will
not be for funds reasons. As most cheques will not be required for exhibition, the increase in Item-not-yet
to-hand answers is expected to be minimal. Consequently there is no industry response to this problem
required.
Last amended
effective 30/8/02
Disabled Participating Member

Summary:
Activity:
Settlement:
business day.
Interest:
4.16
Generate Outward Dishonours (Electronic Message)
Internal effect:
Unable to process outward electronic dishonours.
External effect:
Delay in outward dishonour processing.
If dishonour processing is disabled, the appropriate industry response is:

z
that non-Disabled Institutions to accept dishonours from the Disabled Participating Member that
may otherwise be refused under Schedule 11, Rule 3),
Summary:
Activity:
Last amended
effective 30/8/02
Inserted
effective 30/8/02
Last amended
effective 30/8/02
processing. Non-Disabled Institutions should accept dishonours from the Disabled
Participating Member that may otherwise be refused under Schedule 11, Rule 3.

K.21
[ABN 12 055 136 519]


Settlement:
business day.
Interest:
4.17
Internal effect:
Unable to process inward dishonours.
External effect:
None.
The Disabled Participating Member is the main party affected in this situation in that its funds hold (aka
clear funds policy) period may be impacted. Non-Disabled Institutions will only be affected if the Disabled
Participating Member needs to refuse an inward dishonour and is unable to do so within the required time.
Non-Disabled Institutions should take this into account when assessing whether the Disabled Participating
Member has complied with the time restrictions for refusal.
Summary:
Activity:
As normal, the Disabled Participating Member should still attend exchanges. NonDisabled Institutions should take into account the Disabled Participating Members
difficulty when assessing whether the Disabled Participating Member has complied
with the time restrictions for refusal.
Settlement:
business day.
Interest:

K.22
[ABN 12 055 136 519]


Section 5 Disabling Events
5.
DISABLING EVENTS
5.1
Executive Summary
5.2
Roles and Responsibilities
5.3
Communications
5.4
5.5
Disabling Events
Last amended
effective 22/01/09

K.23
[ABN 12 055 136 519]


5.1
Executive Summary
5.1.1
Overview
These guidelines have been prepared and endorsed by the Management Committee. They are
not mandatory rules but intended to guide the Participating Members when exercising discretion
to determine what action is to be taken in response to a Disabling Event.
Each Disabling Event should be treated on its merits.
5.1.2
Disabled Participating Members should only ever be excused from attending exchanges if it is
physically impossible to do so. The prospect of greater demand for liquidity because of one-way
exchanges is not a reason to be excused from attending exchanges.
5.1.3
Settlement
Unless specifically deferred, (see Schedule 5, Rule 3) settlement will not be affected by the
occurrence of a Disabling Event, and may be effected on the exchange balances. Where this
results in larger than normal settlement obligations, any excessive liquidity demands which arise
should be funded from market operations (including for example RBA repos) or as otherwise
directed by Reserve Bank of Australia.
If a Disabled Participating Member is unable to produce its own exchange balances because of
the Disabling Event and it disputes the exchange balances provided to it by non-Disabled Tier
1A Participating Members, then that Disabled Participating Member will be unable to provide
settlement figures to the Reserve Bank of Australia and Rule 5.2E of Schedule 4 will be invoked.
5.2
Roles and Responsibilities
5.2.1
Australian Payments Clearing Association Limited (the Company)
Last amended
effective 22/10/12
The roles and responsibilities of the Company, in relation to a Disabling Event, are as follows:
5.2.2
Provide support and recommend appropriate actions to be taken by impacted

Participating Members experiencing the Disabling Event; and
Communicate with Participating Members on matters that affect industry payments and
clearing arrangements.
Participating Members
The roles and responsibilities of Participating Members in relation to a Disabling Event are as
follows:
Ensure internal contingency/fallback plans are consistent with these industry

contingency procedures (set out in Appendix K);

K.24
[ABN 12 055 136 519]


Implement internal contingency procedures in response to a Disabling Event and

manage the impact on their internal operations;
Assist in implementing industry contingency procedures for APCS, if applicable; and
Communicate directly with their customers, the Company and other relevant parties.
5.3
Communications
5.3.1
Overview of Contingency Communication Process for APCS

This section defines the communications process between the Company and Tier 1A
Participating Members in a Disabling Event.
5.3.2
Participating Member Activates Contingency Arrangements

When a Tier 1A Participating Member reports a Disabling Event they may invoke internal
contingency plans, which may include contingency arrangements as required by the Regulations
and Procedures.
5.3.3
Participating Member Advises the Company of A Disabling Event

When a Tier 1A Participating Member experiences a processing difficulty or Disabling Event,
they may complete a PDN (see Appendix M) and forward to the Company during business
hours7.
The Disabled Tier 1A Participating Member may keep the Company updated on any change,
improvement or deterioration concerning the Disabling Event by completing and forwarding
subsequent PDNs during business hours.
5.3.4
The Company Actions Tier 1A Participating Members PDN

The Disabled Tier 1A Participating Member may request the Company to broadcast details of
the Disabling Event to all Participating Members. The broadcast will be undertaken within one
(1) hour of receipt of the PDN during business hours.
All subsequent communications relating to the Disabling Event, with the consent of the affected
Participating Member, will be broadcast at regular intervals to other Participating Members for
update purposes.
5.4
Contingency Procedures for Disabling Events
5.4.1
The Company Contingency Role

The Company is to proceed as follows in the event of a Tier 1A Participating Member
experiencing a Disabling Event:
Monday to Friday, 8.30am to 5.30pm.

z
Receive and record PDN from Disabled Participating Member during normal business

K.25
[ABN 12 055 136 519]


hours;
5.4.2
Request the Disabled Participating Member to implement contingency procedures, if

appropriate;
Initiate a broadcast to all Participating Members within one (1) hour, during business
hours, of receiving a PDN; and
Broadcast additional updates to all Participating Members at regular intervals, if

appropriate and with consent of Disabled Participating Member.
Participating Members Contingency Procedure

Participating Members may follow this procedure where a Disabling Event occurs:
z
Actively pursue the identification and appropriate resolution of problem causing the
Disabling Event;
Invoke the appropriate internal contingency plans which may include the contingency
procedures detailed in Appendix K;
Notify the Company within one (1) hour of the internal assessment that a Disabling
Event may directly or indirectly impact other Participating Members. The Disabled
Participating Member may complete and forward a PDN to the Company;
Consider and take appropriate action on the advice and recommendations given by the
Company regarding the Disabling Event, if appropriate; and
Keep the Company updated of any change, improvement or deterioration concerning

the Disabling Event by completing and forwarding subsequent PDNs at two (2) hourly
intervals, or more frequently if appropriate, during business hours.
5.5
Disabling Events
5.5.1
Overview
This section describes each identified Disabling Event that may occur and appropriate actions
that the Company and Participating Members may undertake to address them. Each Disabling
Event covered is categorised.
5.5.2
Disabling Events
There are four (4) categories of Disabling Events:
z
Participating Member is unable to electronically send and/or receive data file(s) using
primary exchange arrangement;
Participating Member is unable to process data file(s);
Participating Member is unable to provide settlement data to the Reserve Bank of

K.26
Last amended
effective 22/10/12
[ABN 12 055 136 519]


Australia; and
z
Participating Member is unable to attend Specified Locations for physical exchange of

paper.

K.27
[ABN 12 055 136 519]


Disabling Events & Actions

5.5.3
Disabling Event No. 1
(a)
Disabling Event Description: Tier 1A Participating Member is unable to send or receive Electronic Presentment (EP) files to other Tier 1A Participating Members using primary
exchange arrangements.
POSSIBLE ACTIONS8 BY IMPACTED TIER 1A PARTICIPATING MEMBER(S)
EXTENT OF THE
DISABLING EVENT
Reported by a Tier 1A
Participating
Member
where
primary exchange arrangement
has failed.
To assist Disabled Participating Member:
Participating Member that they
have failed to exchange EP files
with another Tier 1A Participating
Member
using
contingency
exchange arrangements, assuming
that the primary exchange
arrangement failure has already
been reported.
Agreed bilaterally.
11
Monday to Friday 8.30am to 5.30pm.
Arrange a later transmission after the problem is fixed agreed bilaterally with other Tier 1A Participating
Members;
Complete a Contingency File Exchange Form (as set out in Appendix P1) and forward to the Receiving
Institution;
Exchange files using contingency exchange arrangements as tabled in Appendix O Contingency Exchange
Arrangements Matrix;
Send initial PDN to the Company during business hours9; and
Broadcast regular PDNs to the Company, during business hours10 until Disabling Event resolved.
Arrange a later transmission after the problem is fixed agreed bilaterally with other Tier 1A Participating
Members;
Institution;
Exchange files using other bilaterally agreed contingency exchange arrangements as tabled in Appendix O
Contingency Exchange Arrangements Matrix;
Contact the Company for Chief Executive Officer input;
Identify problems and invoke resolutions with contingency exchange arrangements;
Send PDN to the Company; and
Broadcast regular PDNs to the Company, during business hours12 until Disabling Event resolved.
12
Broadcast PDN to all Participating Members

(in consultation with Disabled Participating
Member);
Broadcast regular updates to all Participating
Members until Disabling Event resolved;
Provide advisory support and coordination to
impacted Participating Member(s); and
Monitor progress during business hours11.
Invoke contingency procedures which may include:
POSSIBLE ACTIONS BY THE

COMPANY TO ASSIST
10
13

Member);
Monitor progress during business hours13; and
impacted Participating Member(s) which may
include media interaction with consent of

[ABN 12 055 136 519]

K.28

(b)
Disabling Event Description: Tier 1A Participating Member unable to send/receive Electronic Dishonour (ED), Electronic Dishonour Refusal (EDR) & Voucher Required (VR)
files to/from other Tier 1A Participating Members.
EXTENT OF THE
DISABLING EVENT
At least one (1) Tier 1A
Participating Member has failed to
exchange ED, EDR and VR Files
with other Tier 1A Participating
Members using the primary
exchange arrangement.
At least one (1) Tier 1A

Participating Member has failed to
exchange ED, EDR and VR Files
with other Tier 1A Participating
Members using the contingency
exchange arrangement, assuming
the primary exchange arrangement
failure has already been reported.
17
Agreed bilaterally.
18

Member);
15
Arrange a later or delayed transmission of the ED, EDR and VR files after the problem is fixed agreed
bilaterally with other Tier 1A Participating Members;
Institution;
Exchange files using contingency exchange arrangements as tabled in Appendix O Contingency Exchange
Arrangements Matrix;
Send initial PDN to the Company;
Broadcast regular PDNs to the Company, during business hours15, until Disabling Event resolved; and
Provide a report of transaction details.
14

COMPANY TO ASSIST
Arrange a later or delayed transmission of the ED, EDR and VR files after the problem is fixed agreed
bilaterally with other Tier 1A Participating Members;
Institution;
Exchange files using other bilaterally agreed contingency exchange arrangements as tabled in Appendix O
Contingency Exchange Arrangements Matrix;
Contact the Company for Chief Executive Officer input;
Identify problems and invoke resolutions with contingency exchange arrangements;
Broadcast regular PDNs to the Company, during business hours17, until Disabling Event resolved; and
Provide a report of transaction details.
16

Member);
Monitor progress during business hours18; and
impacted Participating Member(s) which may
include media interaction with consent of
[ABN 12 055 136 519]

K.29

(c)
Disabling Event Description: Tier 1A Participating Member unable to send/receive acknowledgment of EP, ED and EDR files (including Technically Invalid Files).
EXTENT OF THE
DISABLING EVENT
19

COMPANY TO ASSIST
Telephone the other Tier 1A Participating Members for acknowledgment and fax details of technically invalid
Items; and
E-mail the other Tier 1A Participating Member(s) for acknowledgment and details of technically invalid Items.

impacted Participating Member(s).
Agreed bilaterally.
[ABN 12 055 136 519]

K.30

5.5.4

Disabling Event Description: Participating Member unable to process EP data internally.
EXTENT OF THE
DISABLING EVENT
Reported by any Participating
Member that they are unable to
process EP data internally.

COMPANY TO ASSIST
Delay EP pending resolution of the problem. If problem relates to electronic files received agreed bilaterally
with other Tier 1A Participating Members.
Send initial PDN to the Company.
Broadcast regular PDNs to the Company, during business hours21, until Disabling Event resolved.
20
21
22

Member);
Agreed bilaterally.
[ABN 12 055 136 519]

K.31

5.5.5

Disabling Event Description: Tier 1A Participating Member unable to provide settlement data to the Reserve Bank of Australia.
EXTENT OF THE
DISABLING EVENT
Participating Member that they are
unable to provide part or all
settlement figures to the Reserve
Bank of Australia with respect to
EP files sent and received for the
business day.
23

COMPANY TO ASSIST
Refer to Schedule 5, Rule 3.
Agreed bilaterally.
[ABN 12 055 136 519]

K.32

5.5.6

Disabling Event Description: Tier 1A Participating Member unable to attend designated Specified Location to exchange For-Value paper.
EXTENT OF THE
DISABLING EVENT

COMPANY TO ASSIST
Contact other Tier 1A Participating Members to agree other arrangements.

Refer to Schedule 4, Rule 5.
24
Agreed bilaterally.
The next page is L1.1
[ABN 12 055 136 519]

K.33

Appendix L1 Replacement Cheques: Facsimile Request Form
Inserted,
effective 3/5/99
Last amended
effective 20/01/03
Appendix L1
REQUEST TO OBTAIN REPLACEMENT CHEQUE FROM CUSTOMER
From:
Date:
[Name of Collecting Institution, including ACN/ARBN/ABN]
Fax No.:
Reference No.:
URGENT AND CONFIDENTIAL COMMUNICATION: This facsimile is both URGENT and CONFIDENTIAL and
is intended only for the use of the addressee. If you have received this communication in error, please notify the financial
institution from which you received it immediately to arrange disposal. Unauthorized use of any information in this
message may result in legal proceedings against the user. Thank you.
To:
Fax No.:
[Name of Paying Institution]
A cheque, drawn on your Institution and deposited by our customer on [date] is believed to be
lost in the clearing system. We request your assistance to obtain a replacement cheque from
the drawer, in terms of the arrangements as set out in Schedule 10, Rule 2.4.1 of the APCS
Procedures.
Details of the missing cheque are shown below:
Payee:
Drawer:
Extra Aux Dom Serial Number
BSB Number
Account Number
Amount
Image of Item (if held)
Please acknowledge receipt by completing the panel below and return by facsimile to [insert
facsimile no.].
From:
[Name of Paying Institution ACN/ARBN/ABN]
Date:
We acknowledge receipt of your facsimile Request to Obtain a Replacement Cheque from

Customer [reference number]. A request has been sent to our customer on [date]. We will
advise you of outcome in due course.
Replying Officer:
Signature:
The next page is L2.1

L1.1
[ABN 12 055 136 519]


Appendix L2 Replacement Cheques: Letter to Drawer of Missing Cheque
Inserted,
effective 3/5/99
Last amended
effective 30/10/02
Appendix L2
DRAFT LETTER TO DRAWER OF MISSING CHEQUE
(To be sent by the Drawee Financial Institution to the Customer)
Letter Head
[Date and address details of Customer]
Dear ,
A cheque for [$ dollar amount], serial number [000000], drawn on your account [Account number],
has been reported lost in the course of being cleared to us by [name of the Collecting Institution]. We
now seek your co-operation in providing us with a replacement cheque, payable to the same person and
for the same amount, so that clearance may be completed.
Please also sign and return to us the enclosed Stop Payment form, to stop payment of the original
cheque in case it should be found and presented. [Insert, (if applicable) There will be no charge for
this stop payment.]
Last amended,
effective 23/11/99
For your information, the Cheques Act provides that if your cheque is lost while lawfully in the
possession of any person, that person has the right to request from you, the drawer, a replacement
cheque in the same terms as the lost original cheque.
We apologise for any inconvenience caused. We would appreciate your prompt attention to this
request so that the matter can be finalised.
Yours faithfully,
..
The next page is M1.1

L2.1
[ABN 12 055 136 519]

Last amended
effective 25/7/08
Appendix M Processing Difficulty Notification Forms
Appendix M1
APCS PROCESSING DIFFICULTY NOTIFICATION
APCS Processing Difficulty Notification

Disclaimer: This document has been compiled in good faith from information provided by third parties. No representation or warranty is made by
APCA as to the truth or accuracy of the information and APCA, its officers, employees and agents expressly disclaim all and any liability in respect
of the information.
DETAILS
Date of Advice:
DD
MMM
YYYY
Notifying Institution:
Institution Experiencing
Difficulty:
(Makes Both Institutions the

Same)
CONTACT POINT
Name:
Phone Number:
Fax Number:
E-mail Address:
PAYMENT STREAM AFFECTED

APCS Australian Paper Clearing System
PROCESSES AFFECTED APCS
Delivery of Not-for-Value Items
Dishonours - Paper
Dishonours - Electronic
Refusals - Electronic
Voucher Required - Electronic
Special Answers - Paper
Special Answers - Electronic
Urgent Trace Requests - Paper
Urgent Trace Requests Electronic

M1.1
[ABN 12 055 136 519]

Last amended
effective 25/7/08
EXPECTED DURATION OF PROCESSING DIFFICULTY

Date Difficulty Occurred:
DD
MMM
Time of Availability:
YYYY
(Approximate)
Date of Availability:
DD
MMM
YYYY
COMMENTS
ATTACHMENTS
There are No Attachments to this PDN
The next page is M2.1

M1.2
[ABN 12 055 136 519]

Last amended
effective 25/7/08
Appendix M2
APCS AND BECS PROCESSING DIFFICULTY NOTIFICATION
APCS and BECS

Processing Difficulty Notification
Disclaimer: This document has been compiled in good faith from information provided by third parties. No representation or warranty is made by
APCA as to the truth or accuracy of the information and APCA, its officers, employees and agents expressly disclaim all and any liability in respect
of the information.
DETAILS
Date of Advice:
DD
MMM
YYYY
Notifying Institution:
Institution Experiencing
Difficulty:
(Makes Both Institutions the

Same)
CONTACT POINT
Name:
Phone Number:
Fax Number:
E-mail Address:
PAYMENT STREAMS AFFECTED

APCS Australian Paper Clearing System
BECS Bulk Electronic Clearing System
PROCESSES AFFECTED APCS

Delivery of Not-for-Value Items
Dishonours - Paper
Dishonours - Electronic
Refusals - Electronic
Voucher Required - Electronic
Special Answers - Paper
Special Answers - Electronic
Urgent Trace Requests - Paper
M2.1
[ABN 12 055 136 519]

Last amended
effective 25/7/08
Urgent Trace Requests Electronic

PROCESSES AFFECTED - BECS
Detail Records
Returns
Refusals
EXPECTED DURATION OF PROCESSING DIFFICULTY

Date Difficulty Occurred:
DD
MMM
Expected Availability Time:
YYYY
(Approximate)
Date of Availability:
DD
MMM
YYYY
COMMENTS
ATTACHMENTS
There are No Attachments to this PDN
The next page is N.1

M2.2
[ABN 12 055 136 519]

Last amended
effective 30/6/03
Appendix N Primary Exchange Arrangements Matrix
Confidential
Appendix N Primary Exchange Arrangements Matrix
Appendix N is located separately
The next page is O.1
[ABN 12 055 136 519]

N.1
Last amended
effective 30/6/03
Appendix O Contingency Exchange Arrangements Matrix
Confidential
Appendix O Contingency Exchange Arrangements Matrix
Appendix O is located separately
The next page is P1.1
[ABN 12 055 136 519]

O.1

Appendix P1 Contingency File Exchange Form
(Part 1.1, Schedule 11, Rule 4.6)
Sending Institution Logo (Optional)
Contingency File Exchange Form

Date sent:
CONFIDENTIAL COMMUNICATION:
This communication is confidential and intended only for the use of the addressee. If you have received this communication in error, please notify the financial institution
from which you have received it, at the telephone number given, to arrange disposal. Unauthorised use of the information in this message may result in legal proceedings
against the user. Thank you.
[Full Name of Receiving Institution]
To:
Fax number:
Email:
Please refer to the email file exchange contacts database for details of Receiving Institutions facsimile number / email address.
[Full Name and ACN/ARBN/ABN of Sending

Institution]
From:
Fax number:
Email:
Authorised
Contact:
(Name & position)
Signature:
We advise that:
as part of standard half yearly contingency testing, the following files are being sent to you
or
due to a Disabling Event we are experiencing a partial/total loss of our ability to send/receive files using our
primary exchange arrangements.
We seek your assistance in sending/receiving our files as detailed below.
Electronic Presentment (EP) File/s:
Sending
Filename:
File size :
Number of Items in file:
Total Value of file:
Debits
Credits
Expected Transmission (Date/Time):

Sending Files:
File will be sent using the following Contingency
Exchange Arrangement
Email File Exchange

Alternate electronic link
Pass through Courier using ________1
Physical Medium using ____________2
Other please specify ______________

P1.1
[ABN 12 055 136 519]


Receiving Files:
Please forward
arrangement.
1
2
our
files
using
the
following
Email File Exchange

Other please specify _______________
Include full name or mnemonic of pass through courier.

Provide details of the type of physical medium to be used (eg. CD, tape cartridge).

P1.2
[ABN 12 055 136 519]


Electronic Dishonour (ED) File/s:

Sending
Filename:
File size :
Debits
Credits

Sending Files:
Receiving Files:
Please forward
arrangement.
our
files
using
the
following
Email File Exchange

Email File Exchange

Electronic Dishonour Refusal (EDR) File/s:

Sending
Filename:
File size :
Debits
Credits

Sending Files:
Receiving Files:
Please forward
arrangement.
1
2
our
files
using
the
following
Email File Exchange

Email File Exchange



P1.3
[ABN 12 055 136 519]


Voucher Required (VR) File/s:

Sending
Filename:
File size :
Debits
Credits

Sending Files:
Receiving Files:
Please forward
arrangement.
our
files
using
the
following
Email File Exchange

Email File Exchange

Please acknowledge successful receipt of our file(s) by contacting :

Contact
(Name & position)
Contact Phone:
Please acknowledge acceptance of our file(s) by contacting :

Contact
(Name & position)
1
2
Contact Phone:


P1.4
[ABN 12 055 136 519]


Appendix P2 Email File Exchange Forms
Amended
effective 03/04/06
Last amended
effective 25/7/08
CONTACTS LODGEMENT FORM

P2.1
[ABN 12 055 136 519]


Appendix P2 Email File Exchange Forms
Amended
effective 03/04/06
Last amended
effective 25/7/08
PUBLIC KEY LODGEMENT FORM

P2.2
[ABN 12 055 136 519]

Last amended
effective 9/12/2009
Appendix P3 Contingency Procedures Testing Certificate

(Schedule 11, Rules 4.14 4.16)
Confidential
APCS CONTINGENCY PROCEDURES TESTING

Each Tier 1A Participating Member in the Australian Paper Clearing System (APCS/CS1) is required to
have in place contingency exchange arrangements and to test such arrangements regularly. These
requirements are set out in:
Schedule 11 Rule 4.11 to 4.18 of the APCS Procedures
Specifically, the Procedures documents require each Tier 1A Participating Member to test its contingency
exchange arrangement:
with a minimum of two other Tier 1A Participating Members,

at least once each calendar half year,
using live data, and data received must be used to process actual live transactions.
Tests to be done each calendar half year should be with two different partners, to be arranged bilaterally
on a rotating basis to ensure that the contingency exchange arrangements with all Tier 1A Participating
Members are tested over a period of time that is no more than two calendar years apart.
Participating Members choosing to use physical medium for contingency exchange must test each
bilateral arrangement at least once every calendar half year, until such physical medium is replaced with
alternate electronic communication.
After every test of contingency exchange arrangements, each Tier 1A Participating Member is required
to:
provide APCA with a signed Contingency Procedures Testing Certificate; and
confirm or amend the contact details held on APCA's Email File Exchange Contacts Database.
Details of person providing the Contingency Procedures Testing Certificate

From:
(Name of person)
________________________________________________________
Institution
________________________________________________________
(Tier 1A/Tier 1 Participating Member)
ABN/ARBN/ACN:
_________________________________________________________
Please complete and return before [ Insert date ] to
APCA Operations
Fax: (02) 9221 8057
e-mail: <operations@apca.com.au>

P3.1
[ABN 12 055 136 519]

Last amended
effective 9/12/2009

Confidential
CONTINGENCY PROCEDURES TESTING CERTIFICATE

WE CONFIRM AND CERTIFY THAT
Tier 1A Participating Member:
Has completed its bilateral testing of contingency exchange arrangement(s) in the clearing
system specified below, with two Tier 1A Participating Members (test partners) as indicated.
Australian Paper Clearing System

Name of test partner 1
Date test conducted
Name of test partner 2

Date test conducted
Our contingency exchange arrangements for the clearing system (indicated above) have
been successfully tested and comply with the industry standards outlined (as appropriate)
in:
APCS Procedures Schedule 11, Rules 4.11 to 4.18.

P3.2
[ABN 12 055 136 519]

Last amended
effective 9/12/2009

Confidential
Email File Exchange Contact Details

We also confirm that our details held on APCAs Email File Exchange Contacts Database are
correct for:
Please tick box to confirm
APCS
OR
We advise that our details held on APCAs Email File Exchange Contacts Database are not upto-date. The correct details are shown below. We also confirm that we have posted the correct
details directly to the relevant Email File Exchange Contacts Database on the APCA Extranet.
Australian Paper Clearing System

Name of Contact
Position
Telephone number
Fax number
Contingency File email address
AUTHORISED SIGNATORY
Name of person signing Certificate
Position
Signature
Date
The next page is Q.1

P3.3
[ABN 12 055 136 519]

Last amended
effective 25/7/08
Appendix Q Carrier Envelope Specifications

Confidential
Appendix Q
Carrier Envelope Specifications
Carrier Envelopes are used when the original Debit or Credit Item is mutilated or damaged to such an extent
that it cannot be encoded accurately in the normal way. For details, see Rule 3.8 (e) in Schedule 4 and Rule
1.9 in Schedule 11.
These specifications are divided into the following sections:
Section 1 Physical Specifications for Carrier Envelopes
Section 2 Performance Criteria for Carrier Envelopes
Section 3 Fields to be MICR encoded onto the Carrier Envelope
Section 1 Physical Specifications for Carrier Envelopes
1.
2.
3.
4.
5.
6.
Minimum internal width

Front sheet height
Backing sheet height
Clear band along base for MICR encoding
Use of glue on MICR codeline
No printing is to appear in the MICR clear band (See APCA Publication
Magnetic Ink Character Recognition (MICR) Technical Specifications)
212mm
95mm
100mm
16mm
Prohibited
Required
Section 2 Performance Criteria for Carrier Envelopes

1.
2.
3.
Minimum percentage of envelopes not to jam

Minimum percentage of front images that are legible through Carrier Envelope
Minimum percentage of back images that are legible through Carrier Envelope
95%
100%
85%
Notes applicable to Section 2:

(a)
Minimum test batch size is 100.
(b)
Legibility of any endorsement stamp on the Debit or Credit Item in the Carrier Envelope is to be
regarded as the benchmark for back images.
(c)
Percentages for back image legibility are calculated as follows:

The percentage of legible back images = 100 x number of test items with back images in Carrier
Envelopes in which all of back images are legible / total number of test items with back images in
Carrier Envelopes.
Section 3 Fields to be MICR encoded onto the Carrier Envelope

1.
Fields encoded as per specification for normal Debit an d Credit Item encoding
(see APCA Publication Magnetic Ink Character Recognition (MICR)
Technical Specifications)
The next page is R.1

Q.1
[ABN 12 055 136 519]

Deleted
22/10/12
Appendix R Exchange Summary

Confidential
Deleted in its entirety effective 22/10/12
APPENDIX R EXCHANGE SUMMARY

The next page is S.1
[ABN 12 055 136 519]

R.1
effective
Inserted effective
9/12/2009
Appendix S Capture Validation Rules Lodgement

Confidential
APPENDIX S
CAPTURE VALIDATION RULES LODGEMENT
Mnemonic for Tier 1A Participating
Member
Version Number: (Commence at 1 and
increment by 1 for subsequent versions)
Full Name of Tier 1A Participating
Member
ACN/ARBN/ABN
Effective Date
Structure of the Capture Validation Rules(CVR)

The document is structured in line with the three main processes for capture validation:
Step 1: verification of MICR codeline fields (field presence and length) see Section 1
Step 2: validation of MICR codeline fields (rules relating to the value of particular fields) see Section 2
Step 3: calculation/validation of Auxiliary Domestic, Account number and/or BSB Number fields (Check
Digit Validation) see Section 3
Any queries in relation to the CVR in this document are to be directed to:
Contact person completing this
form
Telephone number
Email address
Changes in this version (if not the initial version)
Actual changes to be recorded using Word Track Changes feature
Section/Institution
Summary of changes
SECTION 1: CODELINE FIELD VERIFICATION

The MICR codeline will comply with APCAs Magnetic Ink Character Recognition (MICR) Technical
Specifications publication Version 3.3.1 (and later versions).

S.1
[ABN 12 055 136 519]

Inserted effective
9/12/2009

Confidential
SECTION 2: CODELINE FIELD VALIDATION

Mnemonic for Tier 1A Participating
Member
Appointors Mnemonic (Only to be
provided if Section 2 refers to codeline
field validations for an Appointor)
Appointors Name
Notes:
1. A separate Section 2 must be completed for the Tier 1A Participating Member and for each of its Appointors.
2. All Check Digit Validation calculations referred to in all of the Section 2s are to be included in one Section 3
after all the Section 2s.
This Section contains rules relating to the validation of MICR codeline fields for Debit Items (values contained
within the MICR codeline fields). It will also identify where Check Digit Validations contained in Section 3 must
be followed.
Codeline
field
Amount
Transaction
Code
Account
number
BSB Number
(Institution
Identifier &
Branch)
Auxiliary
Domestic
Field
Extra
Auxiliary
Domestic
Field
Field
Length
Eg 3
digits or
6 to 8
digits
Requirements
[Eg. Transaction code must be blank filled or

the following numbers: XX, YY, ZZ]
[Eg. Where institution identifier is XX,
account number must be XX digits.
Eg. Perform Modulus Calculation XX:]
[Eg. Institution Identifier must be one of the
following numbers: XX, YY, ZZ.
Eg. Institution Identifier must be one of the
following numbers for appointer items: XX,
YY, ZZ.
Eg. Where Institution Identifier is XX, the
Branch Number must be YY.
Eg. Where the branch numbers are the
following XX, YY, ZZ, follow Modulus
Calculation XX:]
[Eg. Where Auxiliary Domestic Field is
000123 000456 inclusive, perform
Modulus Calculation:]
Field
Length
check
(tick)
Applicable CDV
Identifier (Section
3)
9
9
9
[ANZ.CDV/003]
9
9
9
9
[ANZ.CDV/002]
[ANZ.CDV/001]
[ANZ.CDV/002]
[Eg. Where Auxiliary Domestic Field is

greater than 000456, perform Modulus
Calculation:]
[Eg. Must be blank filled.]

S.2
[ABN 12 055 136 519]

Inserted effective
9/12/2009

Confidential
SECTION 3: CHECK DIGIT VALIDATION

Tier 1A Participating Members
Mnemonic:
Comment:
Note: Only one Section 3 is required, with one or more check digit validation calculation tables included.
Complete the following table for each calculation to be used. These are referred to in Section 2.
CDV Calculation Table
CDV/001]
CDV Identifier:
[Eg. Modulus 10]
Modulus Routine:
Auxiliary Domestic Field
Which codeline fields are to be used?
(select yes/no for those to be used)
BSB Number
Account Number
Other special instructions:
YES
YES
YES
NO
NO
NO
[Eg. Use last four digits of the BSB Number.]

Which number is the check digit (if
any)?
How is the calculation performed?
Validation Decision
[Eg. the last (right most) number of the account number. Or Eg. There is no
check digit; the remainder is to be X or Y.]
[Eg.
1. Begin the calculation with the right most digit, multiplying each digit by
increasing powers of 2, starting with X^0 and ending with X^12.
2. Add the products to get a total.
3. Divide the total by YY.]
[Eg. If the remainder does not equal zero, the item has failed validation.]
Worked example(s) of the CDV calculation.
-END-

S.3
[ABN 12 055 136 519]


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As amended to

AUSTRALIAN PAYMENTS CLEARING ASSOCIATION LIMITED

A Company limited by Guarantee

AUSTRALIAN PAPER CLEARING SYSTEM

Commenced 2 December 1993

Copyright 1993 - 2012 Australian Payments Clearing Association Limited

Australian Payments Clearing Association Limited

AUSTRALIAN PAPER CLEARING SYSTEM

APPROVED EXCHANGE TIMES

Table 1 Monday to Thursday

REPRESENTATION ARRANGEMENTS PUBLISHED MINIMUM REQUIREMENTS S2.1

COMPLETION OF FLOW CHARTS FOR REPRESENTATION ARRANGEMENTS

Purpose of Flow Charts

PROCEDURAL RULES GOVERNING THE CONDUCT OF CLEARINGS, SETTLEMENT

Australian Paper Clearing System PROCEDURES

Rule 2 Attendance at Specified Locations

Rule 4 Errors (Confidential)

Rule 5 Region General Balance

Rule 6 Other Procedural Requirements

PROCEDURAL RULES GOVERNING SPECIFIED LOCATION OR OTHER

Rule 2 Powers and Procedures

Rule 3 Inability to Settle

Rule 4 Specified Location

Australian Paper Clearing System PROCEDURES

PROCEDURES FOR EXCHANGE OF OTHER ARTICLES AT SPECIFIED

PROCEDURAL RULES GOVERNING OUTWARD CLEARINGS

APPROVED REPRESENTATION ARRANGEMENTS

Approved Inward Clearing Representation Arrangements

CONTACT NUMBERS OF THE RESERVE BANK OF AUSTRALIA RITS LOW VALUE

OTHER GENERAL AGREEMENTS BETWEEN INSTITUTIONS (Confidential)

For-Value Paper Exchanges Between Institutions

Remittances & Special Clearances

Special Clearances and Special Answers

Restriction on For-Value Paper Exchanges

Fraud Detection and Prevention

Australian Paper Clearing System PROCEDURES

Third Party Cheque Conversion - Request for Investigation/Claim

Use of Carrier Envelopes for Mutilated or Damaged Items

PROCEDURES FOR ELECTRONIC PRESENTMENT AND ELECTRONIC DISHONOUR

Electronic Dishonours (and Return Messages)

Acceptance of Otherwise Out-Of-Time Dishonours

Electronic Dishonour Refusals

Australian Paper Clearing System PROCEDURES

Bilateral Testing of Contingency Exchange Arrangements

Capture Validation Rules Database

Inter-Institution Vouchers (Confidential)

Transaction Codes (Confidential)

Special Answer Facsimile Request Form

Australian Paper Clearing System PROCEDURES

Third Party Cheque Conversion - Request for Investigation/Claim*

Centralised Contact Points (Confidential)

EP&D File Specifications (Confidential)

CS1 Value, Non Value and Reconciliation Control Messages

Discontinued Exception Items List [Deleted]

Destination BSB Numbers for Encoding Overseas On-Demand AUD Drafts

EP&D Holiday Calendar Specifications

Disabling Events Guidelines

Replacement Cheques: Facsimile Request Form

Processing Difficulty Notification Forms

Australian Paper Clearing System PROCEDURES

APCS Processing Difficulty Notification

Primary Exchange Arrangements Matrix (Confidential)