Expedited Funds Availability Act

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 ActExpedited Funds Availability applies to funds deposited intoa members - transaction/share draft account.

Deposit Definitions

Mail – banking day CU receives itNight 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 $5,000Re-deposited checks

Repeatedly overdrawn accountsReasonable cause to doubt collectability

Longer holds can be placed for:

Emergency situations

New Accounts5,001.00

Holds Notification

Preprinted deposit slipsLobby signsATM notices

Exception & Case-by-Case NoticeOn 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