Authorizations and revocations of authorizations.

§ 210.4 Authorizations and revocations of authorizations. (a) Requirements for authorization. Each debit and credit entry subject to this part shall be authorized in accordance with the applicable ACH Rules and the following additional requirements: (1) The agency or the RDFI that accepts the recipient's authorization shall verify the identity of the recipient and, in the case of a written authorization requiring the recipient's signature, the validity of the recipient's signature. (2) Unless authorized in writing, or similarly authenticated, by an agency, no person or entity shall initiate or transmit a debit entry to that agency, other than a reversal of a credit entry previously sent to the agency. (b) Terms of authorizations. By executing an authorization for an agency to initiate entries, a recipient agrees: (1) To the provisions of this part; (2) To provide accurate information; (3) To verify the recipient's identity to the satisfaction of the RDFI or agency, whichever has accepted the authorization; (4) That any new authorization inconsistent with a previous authorization shall supersede the previous authorization; and (5) That the Federal Government may reverse any duplicate or erroneous entry or file as provided in § 210.6(f) of this part. (c) Termination and revocation of authorizations. An authorization shall remain valid until it is terminated or revoked by: (1) With respect to a recipient of benefit payments, a change in the recipient's ownership of the deposit account as reflected in the deposit account records, including the removal of the name of the recipient, the addition of a power of attorney, or any action which alters the interest of the recipient; (2) The death or legal incapacity of a recipient of benefit payments or the death of a beneficiary; (3) The closing of the recipient's account at the RDFI by the recipient or by the RDFI. With respect to a recipient of benefit payments, if an RDFI closes an account to which benefit payments currently are being sent, it shall provide 30 calendar days written notice to the recipient prior to closing the account, except in cases of fraud; or (4) The RDFI's insolvency, closure by any state or Federal regulatory authority or by corporate action, or the appointment of a receiver, conservator, or liquidator for the RDFI. In any such event, the authorization shall remain valid if a successor is named. The Federal Government may temporarily transfer authorizations to a consenting RDFI. The transfer is valid until either a new authorization is executed by the recipient, or 120 calendar days have elapsed since the insolvency, closure, or appointment, whichever occurs first.