Treasury Final Rule Allows Delivery of Federal Payments to Resident Trust and Patient Fund Accounts

On September 23, 2011, the Department of Treasury, Financial Management Service, issued a Final Rule to amend certain regulations (31 CFR Part 210) governing the use of the Automated Clearing House (ACH) network by federal agencies (the Final Rule). Among other things, the Final Rule adds several exceptions to the long-standing requirement that ACH payments be delivered only to deposit accounts that are registered “in the name of the recipient,” including an exception to allow such payments to be deposited to pooled resident trust or patient fund accounts established by nursing facilities, pursuant to requirements under federal law relating to the protection of such funds. In issuing the Final Rule, the agency notes that the resident trust/patient fund exception is supported by the extensive protections already provided for nursing home residents in the federal statutes and regulations governing the establishment of such accounts held by nursing facilities.

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