expedited funds expedited funds availability act availability act1988
TRANSCRIPT
Expedited Funds Availability Act
Reg. CC
Expedited Funds Availability Act
Expedited Funds Availability Act
1988
http://www.federalreserve.gov/bankinforeg/regcccg.htm
Expedited Funds Availability Act
Expedited Funds Availability applies to funds deposited intoa members - transaction/share draft account.
Deposit Definitions
Mail – banking day CU receives it
Night deposit – when removed by CU
CU ATM’s – when deposited (must consider cut-off)
Off premises ATM – when removed
The day funds are considered deposited:
Closed or after cut-off – next banking day
With teller – when the teller receives it
Availability
Electronic payments (ACH & Wire transfers)U.S. Treasury Checks & Postal Money OrdersFederal Reserve & Federal Home Loan Bank Checks
State & Local Government Checks
Next Day Items:
Cashier, Certified & Teller checks
Cash
Checks drawn on your CU’s accounts
Availability
Reg CC Amendments
• Check 21- 2003
• Local Checks- 2010
Availability$200 Rule:• If $100 is deposited in an account by local
check, the entire amount must be available for withdrawal at the start of the next business day.
• If a member deposits a $500 local check, $200 would have to be available for withdrawal at the start of the next business day, and the remaining $300 would have to be available on the second business day after deposit.
Availability$200 Rule:• If $100 is deposited in an account by local
check, the entire amount must be available for withdrawal at the start of the next business day.
• If a member deposits a $500 local check, $200 would have to be available for withdrawal at the start of the next business day, and the remaining $300 would have to be available on the second business day after deposit.
Exception Holds
Large deposits – over $5,000
Re-deposited checks
Repeatedly overdrawn accounts
Reasonable cause to doubt collectability
Longer holds can be placed for:
Emergency situations
New Accounts5,001.00
Holds Notification
Preprinted deposit slips
Lobby signs
ATM notices
Exception & Case-by-Case Notice
On member request
Initial Funds Availability Policy
Sample Disclosures: http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=775d3d1007f25dc3f6920ba378e674c8&rgn=div9&view=text&node=12:3.0.1.1.10.4.8.11.37&idno=12
Holds Notification
Case-by-Case Holds
Thank you for joining me for this overview of the Expedited Funds
Availability Act