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Regulation
CC
Availability of Funds And Collection Of Checks
Subpart B--Availability of Funds and Disclosure of Funds Availability
Policies
Section 229.10 - Next-day availability.
Section 229.11 - [Reserved]
Section 229.12 - Availability schedule.
Section 229.13 - Exceptions.
Section 229.14 - Payment of interest.
Section 229.15 - General disclosure requirements.
Section 229.16 - Specific availability policy
disclosure.
Section 229.17 - Initial disclosures.
Section 229.18 - Additional disclosure requirements.
Section 229.19 - Miscellaneous.
Section 229.20 - Relation to state law.
Section 229.21 - Civil liability.
Sec. 229.10 Next-day availability.
(a) Cash deposits. (1) A bank shall
make funds deposited in an account by cash available for withdrawal
not later than the business day after the banking day on which
the cash is deposited, if the deposit is made in person to an
employee of the depositary bank.
(2) A bank shall make funds deposited
in an account by cash available for withdrawal not later than
the second business day after the banking day on which the cash
is deposited, if the deposit is not made in person to an employee
of the depositary bank.
(b) Electronic payments--(1) In general.
A bank shall make funds received for deposit in an account by
an electronic payment available for withdrawal not later than
the business day after the banking day on which the bank received
the electronic payment.
(2) When an electronic payment is received.
An electronic payment is received when the bank receiving the
payment has received both--
(i) Payment in actually and finally collected
funds; and
(ii) Information on the account and amount
to be credited.
A bank receives an electronic payment
only to the extent that the bank has received payment in actually
and finally collected funds.
(c) Certain check deposits--(1) General
rule. A depositary bank shall make funds deposited in an account
by check available for withdrawal not later than the business
day after the banking day on which the funds are deposited, in
the case of--
(i) A check drawn on the Treasury of
the United States and deposited in an account held by a payee
of the check;
(ii) A U.S. Postal Service money order
deposited--
(A) In an account held by a payee of
the money order; and
(B) In person to an employee of the depositary
bank.
(iii) A check drawn on a Federal Reserve
Bank or Federal Home Loan Bank and deposited--
(A) In an account held by a payee of
the check; and
(B) In person to an employee of the depositary
bank;
(iv) A check drawn by a state or a unit
of general local government and deposited--
(A) In an account held by a payee of
the check;
(B) In a depositary bank located in
the state that issued the check, or the same state as the unit
of general local government that issued the check;
(C) In person to an employee of the depositary
bank; and
(D) With a special deposit slip or deposit
envelope, if such slip or envelope is required by the depositary
bank under paragraph (c)(3) of this section.
(v) A cashier's, certified, or teller's
check deposited--
(A) In an account held by a payee of
the check;
(B) In person to an employee of the depositary
bank; and
(C) With a special deposit slip or deposit
envelope, if such slip or envelope is required by the depositary
bank under paragraph (c)(3) of this section.
(vi) A check deposited in a branch of
the depositary bank and drawn on the same or another branch of
the same bank if both branches are located in the same state or
the same check processing region; and,
(vii) The lesser of--
(A) $100, or
(B) The aggregate amount deposited on
any one banking day to all accounts of the customer by check or
checks not subject to next-day availability under paragraphs (c)(1)
(i) through (vi) of this section.
(2) Checks not deposited in person. A
depositary bank shall make funds deposited in an account by check
or checks available for withdrawal not later than the second business
day after the banking day on which funds are deposited, in the
case of a check deposit described in and that meets the requirements
of paragraphs (c)(1) (ii), (iii), (iv), and (v), of this section,
except that it is not deposited in person to an employee of the
depositary bank.
(3) Special deposit slip. (i) As a condition
to making the funds available for withdrawal in accordance with
this section, a depositary bank may require that a state or local
government check or a cashier's, certified, or teller's check
be deposited with a special deposit slip or deposit envelope that
identifies the type of check.
(ii) If a depositary bank requires the
use of a special deposit slip or deposit envelope, the bank must
either provide the special deposit slip or deposit envelope to
its customers or inform its customers how the slip or envelope
may be prepared or obtained and make the slip or envelope reasonably
available.
Sec. 229.12 Availability schedule.
(a) Effective date. The availability
schedule contained in this section is effective September 1, 1990.
(b) Local checks and certain other checks.
Except as provided in paragraphs (d), (e), and (f) of this section,
a depository bank shall make funds deposited in an account by
a check available for withdrawal not later than the second business
day following the banking day on which funds are deposited, in
the case of--
(1) A local check;
(2) A check drawn on the Treasury of
the United States that is not governed by the availability requirements
of Sec. 229.10(c);
(3) A U.S. Postal Service money order
that is not governed by the availability requirements of Sec.
229.10(c); and
(4) A check drawn on a Federal Reserve
Bank or Federal Home Loan Bank; a check drawn by a state or unit
of general local government; or a cashier's, certified, or teller's
check; if any check referred to in this paragraph (b)(4) is a
local check that is not governed by the availability requirements
of Sec. 229.10(c).
(c) Nonlocal checks--(1) In general.
Except as provided in paragraphs (d), (e), and (f) of this section,
a depositary bank shall make funds
deposited in an account by a check available for withdrawal not
later than the fifth business day following the banking day on
which funds are deposited, in the case of--
(i) A nonlocal check; and
(ii) A check drawn on a Federal Reserve
Bank or Federal Home Loan Bank; a check drawn by a state or unit
of general local government; a cashier's, certified, or teller's
check; or a check deposited in a branch of the depositary bank
and drawn on the same or another branch of the same bank, if any
check referred to in this paragraph (c)(1)(ii) is a nonlocal check
that is not governed by the availability requirements of Sec.
229.10(c).
(2) Nonlocal checks specified in appendix
B-2 to this part must be made available for withdrawal not later
than the times prescribed in that Appendix.
(d) Time period adjustment for withdrawal
by cash or similar means. A depositary bank may extend by one
business day the time that funds deposited in an account by one
or more checks subject to paragraphs (b), (c), or (f) of this
section are available for withdrawal by cash or similar means.
Similar means include electronic payment, issuance of a cashier's
or teller's check, or certification of a check, or other irrevocable
commitment to pay, but do not include the granting of credit to
a bank, a Federal Reserve Bank, or a Federal Home Loan Bank that
presents a check to the depositary bank for payment. A depositary
bank shall, however, make $400 of these funds available for withdrawal
by cash or similar means not later than 5:00 p.m. on the business
day on which the funds are available under paragraphs (b), (c),
or (f) of this section. This $400 is in addition to the $100 available
under Sec. 229.10(c)(1)(vii).
(e) Extension of schedule for certain
deposits in Alaska, Hawaii, Puerto Rico, and the U.S. Virgin Islands.
The depositary bank may extend the time periods set forth in this
section by one business day in the case of any deposit, other
than a deposit described in Sec. 229.10, that is--
(1) Deposited in an account at a branch
of a depositary bank if the branch is located in Alaska, Hawaii,
Puerto Rico, or the U.S. Virgin Islands; and
(2) Deposited by a check drawn on or
payable at or through a paying bank not located in the same state
as the depositary bank.
(f) Deposits at nonproprietary ATMs.
A depositary bank shall make funds deposited in an account at
a nonproprietary ATM by cash or check available for withdrawal
not later than the fifth business day following the banking day
on which the funds are deposited.
Sec. 229.13 Exceptions.
(a) New accounts. For purposes of this
paragraph, checks subject to Sec. 229.10(c)(1)(v) include traveler's
checks.
(1) A deposit in a new account--
(i) Is subject to the requirements of
Sec. 229.10 (a) and (b) to make funds from deposits by cash and
electronic payments available for withdrawal on the business day
following the banking day of deposit or receipt;
(ii) Is subject to the requirements of
Sec. 229.10(c)(1) (i) through (v) and Sec. 229.10(c)(2) only with
respect to the first $5,000 of funds deposited on any one banking
day; but the amount of the deposit in excess of $5,000 shall be
available for withdrawal not later than the ninth business day
following the banking day on which funds are deposited; and
(iii) Is not subject to the availability
requirements of Secs. 229.10(c)(1)(vi) and (vii) and 229.12.
(2) An account is considered a new account
during the first 30 calendar days after the account is established.
An account is not considered a new account if each customer on
the account has had, within 30 calendar days before the account
is established, another account at the depositary bank for at
least 30 calendar days.
(b) Large deposits. Sections 229.10(c)
and 229.12 do not apply to the aggregate amount of deposits by
one or more checks to the extent that the aggregate amount is
in excess of $5,000 on any one banking. day. For customers that
have multiple accounts at a depositary bank, the bank may apply
this exception to the aggregate deposits to all accounts held
by the customer, even if the customer is not the sole holder of
the accounts and not all of the holders of the accounts are the
same.
(c) Redeposited checks. Sections 229.10(c)
and 229.12 do not apply to a check that has been returned unpaid
and redeposited by the customer or the depositary bank. This exception
does not apply--
(1) To a check that has been returned
due to a missing indorsement and redeposited after the missing
indorsement has been obtained, if the reason for return indication
on the check states that it was returned due to a missing indorsement;
or
(2) To a check that has been returned
because it was post dated, if the reason for return indicated
on the check states that it was returned because it was post dated,
and if the check is no longer postdated when redeposited.
(d) Repeated overdrafts. If any account
or combination of accounts of a depositary bank's customer has
been repeatedly overdrawn, then for a period of six months after
the last such overdraft, Secs. 229.10(c) and 229.12 do not apply
to any of the accounts. A depositary bank may consider a customer's
account to be repeatedly overdrawn if--
(1) On six or more banking days within
the preceding six months, the account balance is negative, or
the account balance would have become negative if checks or other
charges to the account had been paid; or
(2) On two or more banking days within
the preceding six months, the account balance is negative, or
the account balance would have become negative, in the amount
of $5,000 or more, if checks or other charges to the account had
been paid.
(e) Reasonable cause to doubt collectibility--(1)
In general. Sections 229.10(c) and 229.12 do not apply to a check
deposited in an account at a depositary bank if the depositary
bank has reasonable cause to believe that the check is uncollectible
from the paying bank. Reasonable cause to believe a check is uncollectible
requires the existence of facts that would cause a well-grounded
belief in the mind of a reasonable person. Such belief shall not
be based on the fact that the check is of a particular class or
is deposited by a particular class of persons. The reason for
the bank's belief that the check is uncollectible shall be included
in the notice required under paragraph (g) of this section.
(2) Overdraft and returned check fees.
A depositary bank that extends the time when funds will be available
for withdrawal as described in paragraph (e)(1) of this section,
and does not furnish the depositor with written notice at the
time of deposit shall not assess any fees for any subsequent overdrafts
(including use of a line of credit) or return of checks of other
debits to the account, if--
(i) The overdraft or return of the check
would not have occurred except for the fact that the deposited
funds were delayed under paragraph (e)(1) of this section; and
(ii) The deposited check was paid by
the paying bank.
Notwithstanding the foregoing, the depositary bank may assess
an overdraft or returned check fee if it includes a notice concerning
overdraft and returned check fees with the notice of exception
required in paragraph (g) of this section and, when required,
refunds any such fees upon the request of the customer. The notice
must state that the customer may be entitled to a refund of overdraft
or returned check fees that are assessed if the check subject
to the exception is paid and how to obtain a refund.
(f) Emergency conditions. Sections 229.10(c)
and 229.12 do not apply to funds deposited by check in a depositary
bank in the case of--
(1) An interruption of communications
or computer or other equipment facilities;
(2) A suspension of payments by another
bank;
(3) A war; or
(4) An emergency condition beyond the
control of the depositary bank, if the depositary bank exercises
such diligence as the circumstances require.
(g) Notice of exception--(1) In general.
Subject to paragraphs (g)(2) and (g)(3) of this section, when
a depositary bank extends the time when funds will be available
for withdrawal based on the application of an exception contained
in paragraphs (b) through (f) of this section, it must provide
the depositor with a written notice.
(i) The notice shall include the following
information--
(A) The account number of the customer;
(B) The date of the deposit;
(C) The amount of the deposit that is
being delayed;
(D) The reason the exception was invoked;
and
(E) The time period within which the
funds will be available for withdrawal.
(ii) Timing of notice. (A) The notice
shall be provided to the depositor at the time of the deposit,
unless the deposit is not made in person to an employee of the
depositary bank, or, if the facts upon which a determination to
invoke one of the exceptions in paragraphs (b) through (f) of
this section to delay a deposit only become known to the depositary
bank after the time of the deposit. If the notice is not given
at the time of the deposit, the depositary bank shall mail or
deliver the notice to the customer as soon as practicable, but
no later than the first business day following the day the facts
become known to the depositary bank, or the deposit is made, whichever
is later.
(B) If the availability of funds is delayed
under the emergency conditions exception provided in paragraph
(f) of this section, the depositary bank is not required to provide
a notice if the funds subject to the exception become available
before the notice must be sent under paragraph (g)(1)(ii)(A) of
this section.
(2) One-time exception notice. In lieu
of providing notice pursuant to paragraph (g)(1) of this section,
a depositary bank that extends the time when the funds deposited
in a nonconsumer account will be available for withdrawal based
on an exception contained in paragraph (b) or (c) of this section
may provide a single notice to the customer that includes the
following information--
(i) The reason(s) the exception may be
invoked; and
(ii) The time period within which deposits
subject to the exception generally will be available for withdrawal.
This one-time notice shall be provided only if each type of exception
cited in the notice will be invoked for most check deposits in
the account to which the exception could apply. This notice shall
be provided at or prior to the time notice must be provided under
paragraph (g)(1)(ii) of this section.
(3) Notice of repeated overdrafts exception.
In lieu of providing notice pursuant to paragraph (g)(1) of this
section, a depositary bank that extends the time when funds deposited
in an account will be available for withdrawal based on the exception
contained in paragraph (d) of this section may provide a notice
to the customer for each time period during which the exception
will be in effect. The notice shall include the following information--
(i) The account number of the customer;
(ii) The fact that the availability of
funds deposited in the customer's account will be delayed because
the repeated overdrafts exception will be invoked;
(iii) The time period within which deposits
subject to the exception generally will be available for withdrawal;
and
(iv) The time period during which the
exception will apply.
This notice shall be provided at or prior to the time notice
must be provided under paragraph (g)(1)(ii) of this section and
only if the exception cited in the notice will be invoked for
most check deposits in the account.
(4) Emergency conditions exception notice.
When a depositary bank extends the time when funds will be available
for withdrawal based on the application of the emergency conditions
exception contained in paragraph (f) of this section, it must
provide the depositor with notice in a reasonable form and within
a reasonable time given the circumstances. The notice shall include
the reason the exception was invoked and the time period within
which funds shall be made available for withdrawal, unless the
depositary bank, in good faith, does not know at the time the
notice is given the duration of the emergency and, consequently,
when the funds must be made available. The depositary bank is
not required to provide a notice if the funds subject to the exception
become available before the notice must be sent.
(5) Record retention. A depositary bank
shall retain a record, in accordance with Sec. 229.21(g), of each
notice provided pursuant to its application of the reasonable
cause exception under paragraph (e) of this section, together
with a brief statement of the facts giving rise to the bank's
reason to doubt the collectibility of the check.
(h) Availability of deposits subject
to exceptions. (1) If an exception contained in paragraphs (b)
through (e) of this section applies, the depositary bank may extend
the time periods established under Secs. 229.10(c) and 229.12
by a reasonable period of time.
(2) If a depositary bank invokes an exception
contained in paragraphs (b) through (e) of this section with respect
to a check described in Sec. 229.10(c)(1) (i) through (v) or Sec.
229.10(c)(2), it shall make the funds available for withdrawal
not later than a reasonable period after the day the funds would
have been required to be made available had the check been subject
to 229.12.
(3) If a depositary bank invokes an exception
under paragraph (f) of this section based on an emergency condition,
the depositary bank shall make the funds available for withdrawal
not later than a reasonable period after the emergency has ceased
or the period established in Secs. 229.10(c) and 229.12, whichever
is later.
(4) For the purposes of this section,
a ``reasonable period'' is an extension of up to one business
day for checks described in Sec. 229.10(c)(1)(vi), five business
days for checks described in Sec. 229.12(b) (1) through (4), and
six business days for checks described in Sec. 229.12(c) (1) and
(2) or Sec. 229.12(f). A longer extension may be reasonable, but
the bank has the burden of so establishing.
Sec. 229.14 Payment of interest.
(a) In general. A depositary bank shall
begin to accrue interest or dividends on funds deposited in an
interest-bearing account not later than the business day on which
the depositary bank receives credit for the funds. For the purposes
of this section, the depositary bank may--
(1) Rely on the availability schedule
of its Federal Reserve Bank, Federal Home Loan Bank, or correspondent
bank to determine the time credit is actually received; and
(2) Accrue interest or dividends on
funds deposited in interest- bearing accounts by checks that the
depositary bank sends to paying banks or subsequent collecting
banks for payment or collection based on the availability of funds
the depositary bank receives from the paying or collecting banks.
(b) Special rule for credit unions. Paragraph
(a) of this section does not apply to any account at a bank described
in Sec. 229.2(e)(4), if the bank--
(1) Begins the accrual of interest or
dividends at a later date than the date described in paragraph
(a) of this section with respect to all funds, including cash,
deposited in the account; and
(2) Provides notice of its interest or
dividend payment policy in the manner required under Sec. 229.16(d).
(c) Exception for checks returned unpaid.
This subpart does not require a bank to pay interest or dividends
on funds deposited by a check that is returned unpaid.
Sec. 229.15 General disclosure requirements.
(a) Form of disclosures. A bank shall
make the disclosures required by this subpart clearly and conspicuously
in writing. Disclosures, other than those posted at locations
where employees accept consumer deposits and ATMs and the notice
on preprinted deposit slips, must be in a form that the customer
may keep. The disclosures shall be grouped together and shall
not contain any information not related to the disclosures required
by this subpart. If contained in a document that sets forth other
account terms, the disclosures shall be highlighted within the
document by, for example, use of a separate heading.
(b) Uniform reference to day of availability.
In its disclosure, a bank shall describe funds as being available
for withdrawal on ``the __________ business day after'' the day
of deposit. In this calculation, the first business day is the
business day following the banking day the deposit was received,
and the last business day is the day on which the funds are made
available.
(c) Multiple accounts and multiple account
holders. A bank need not give multiple disclosures to a customer
that holds multiple accounts if the accounts are subject to the
same availability policies. Similarly, a bank need not give separate
disclosures to each customer on a jointly held account.
(d) Dormant or inactive accounts. A bank
need not give availability disclosures to a customer that holds
a dormant or inactive account.
Sec. 229.16 Specific availability policy
disclosure.
(a) General. To meet the requirements
of a specific availability policy disclosure under Secs. 229.17
and 229.18(d), a bank shall provide a disclosure describing the
bank's policy as to when funds deposited in an account are available
for withdrawal. The disclosure must reflect the policy followed
by the bank in most cases. A bank may impose longer delays on
a case-by-case basis or by invoking one of the exceptions in Sec.
229.l3, provided this is reflected in the disclosure.
(b) Content of specific availability
policy disclosure. The specific availability policy disclosure
shall contain the following, as applicable--
(1) A summary of the bank's availability
policy;
(2) A description of any categories of
deposits or checks used by the bank when it delays availability
(such as local or nonlocal checks); how to determine the category
to which a particular deposit or check belongs; and when each
category will be available for withdrawal (including a description
of the bank's business days and when a deposit is considered received);1
1 A bank that distinguishes
in its disclosure between local and nonlocal checks based on the
routing number on the check must disclose that certain checks,
such as some credit union share drafts that are payable by one
bank but payable through another bank, will be treated as local
or nonlocal checks based upon the location of the bank by which
they are payable and not on the basis of the location of the bank
whose routing number appears on the check. A bank that makes funds
from nonlocal checks available for withdrawal within the time
periods required for local checks under Secs. 229.12 and 229.13
is not required to provide this disclosure on payable-through
checks to its customers. The statement concerning payable-through
checks must describe how the customer can determine whether these
checks will be treated as local or nonlocal, or state that special
rules apply to such checks and that the customer may ask about
the availability of these checks.
(3) A description of any of the exceptions
in Sec. 229.13 that may be invoked by the bank, including the
time following a deposit that funds generally will be available
for withdrawal and a statement that the bank will notify the customer
if the bank invokes one of the exceptions;
(4) A description, as specified in paragraph
(c)(1) of this section, of any case-by-case policy of delaying
availability that may result in deposited funds being available
for withdrawal later than the time periods stated in the bank's
availability policy; and
(5) A description of how the customer
can differentiate between a proprietary and a nonproprietary ATM,
if the bank makes funds from deposits at nonproprietary ATMs available
for withdrawal later than funds from deposits at proprietary ATMs.
(c) Longer delays on a case-by-case basis--(1)
Notice in specific policy disclosure. A bank that has a policy
of making deposited funds available for withdrawal sooner than
required by this subpart may extend the time when funds are available
up to the time periods allowed under this subpart on a case-by-case
basis, provided the bank includes the following in its specific
policy disclosure--
(i) A statement that the time when deposited
funds are available for withdrawal may be extended in some cases,
and the latest time following a deposit that funds will be available
for withdrawal;
(ii) A statement that the bank will notify
the customer if funds deposited in the customer's account will
not be available for withdrawal until later than the time periods
stated in the bank's availability policy; and
(iii) A statement that customers should
ask if they need to be sure about when a particular deposit will
be available for withdrawal.
(2) Notice at time of case-by-case delay--(i)
In general. When a depositary bank extends the time when funds
will be available for withdrawal on a case-by-case basis, it must
provide the depositor with a written notice. The notice shall
include the following information--
(A) The account number of the customer;
(B) The date of the deposit;
(C) The amount of the deposit that is
being delayed; and
(D) The day the funds will be available
for withdrawal.
(ii) Timing of notice. The notice shall
be provided to the depositor at the time of the deposit, unless
the deposit is not made in person to an employee of the depositary
bank or the decision to extend the time when the deposited funds
will be available is made after the time of the deposit. If notice
is not given at the time of the deposit, the depositary bank shall
mail or deliver the notice to the customer not later than the
first business day following the banking day the deposit is made.
(3) Overdraft and returned check fees.
A depositary bank that extends the time when funds will be available
for withdrawal on a case- by-case basis and does not furnish the
depositor with written notice at the time of deposit shall not
assess any fees for any subsequent overdrafts (including use of
a line of credit) or return of checks or other debits to the account,
if--
(i) The overdraft or return of the check
or other debit would not have occurred except for the fact that
the deposited funds were delayed under paragraph (c)(1) of this
section; and
(ii) The deposited check was paid by
the paying bank. Notwithstanding the foregoing, the depositary
bank may assess an overdraft or returned check fee if it includes
a notice concerning overdraft and returned check fees with the
notice required in paragraph (c)(2) of this section and, when
required, refunds any such fees upon the request of the customer.
The notice must state that the customer may be entitled to a refund
of overdraft or returned check fees that are assessed if the check
subject to the delay is paid and how to obtain a refund.
(d) Credit union notice of interest
payment policy. If a bank described in Sec. 229.2(e)(4) begins
to accrue interest or dividends on all deposits made in an interest-bearing
account, including cash deposits, at a later time than the day
specified in Sec. 229.14(a), the bank's specific policy disclosures
shall contain an explanation of when interest or dividends on
deposited funds begin to accrue.
Sec. 229.17 Initial disclosures.
Before opening a new account, a bank shall provide a potential
customer with the applicable specific availability policy disclosure
described in Sec. 229.16.
Sec. 229.18 Additional disclosure requirements.
(a) Deposit slips. A bank shall include
on all preprinted deposit slips furnished to its customers a notice
that deposits may not be available for immediate withdrawal.
(b) Locations where employees accept
consumer deposits. A bank shall post in a conspicuous place in
each location where its employees receive deposits to consumer
accounts a notice that sets forth the time periods applicable
to the availability of funds deposited in a consumer account.
(c) Automated teller machines. (1) A
depositary bank shall post or provide a notice at each ATM location
that funds deposited in the ATM may not be available for immediate
withdrawal.
(2) A depositary bank that operates
an off-premises ATM from which deposits are removed not more than
two times each week, as described in Sec. 229.19(a)(4), shall
disclose at or on the ATM the days on which deposits made at the
ATM will be considered received.
(d) Upon request. A bank shall provide
to any person, upon oral or written request, a notice containing
the applicable specific availability policy disclosure described
in Sec. 229.l6.
(e) Changes in policy. A bank shall send
a notice to holders of consumer accounts at least 30 days before
implementing a change to the bank's availability policy regarding
such accounts, except that a change that expedites the availability
of funds may be disclosed not later than 30 days after implementation.
Sec. 229.19 Miscellaneous.
(a) When funds are considered deposited.
For the purposes of this subpart--
(1) Funds deposited at a staffed facility,
ATM, or contractual branch are considered deposited when they
are received at the staffed facility, ATM, or contractual branch;
(2) Funds mailed to the depositary bank
are considered deposited on the day they are received by the depositary
bank;
(3) Funds deposited to a night depository,
lock box, or similar facility are considered deposited on the
day on which the deposit is removed from such facility and is
available for processing by the depositary bank;
(4) Funds deposited at an ATM that is
not on, or within 50 feet of, the premises of the depositary bank
are considered deposited on the day the funds are removed from
the ATM, if funds normally are removed from the ATM not more than
two times each week; and
(5) Funds may be considered deposited
on the next banking day, in the case of funds that are deposited--
(i) On a day that is not a banking day
for the depositary bank; or
(ii) After a cut-off hour set by the
depositary bank for the receipt of deposits of 2:00 p.m. or later,
or, for the receipt of deposits at ATMs, contractual branches,
or off-premise facilities, of 12:00 noon or later.
(b) Availability at start of business
day. Except as otherwise provided in Sec. 229.12(d), if any provision
of this subpart requires that funds be made available for withdrawal
on any business day, the funds shall be available for withdrawal
by the later of:
(1) 9:00 a.m. (local time of the depositary
bank); or
(2) The time the depositary bank's teller
facilities (including ATMs) are available for customer account
withdrawals.
(c) Effect on policies of depositary
bank. This part does not--
(1) Prohibit a depositary bank from making
funds available to a customer for withdrawal in a shorter period
of time than the time required by this subpart;
(2) Affect a depositary bank's right--
(i) To accept or reject a check for deposit;
(ii) To revoke any settlement made by
the depositary bank with respect to a check accepted by the bank
for deposit, to charge back the customer's account for the amount
of a check based on the return of the check or receipt of a notice
of nonpayment of the check, or to claim a refund of such credit;
and
(iii) To charge back funds made available
to its customer for an electronic payment for which the bank has
not received payment in actually and finally collected funds;
(3) Require a depositary bank to open
or otherwise to make its facilities available for customer transactions
on a given business day; or
(4) Supersede any policy of a depositary
bank that limits the amount of cash a customer may withdraw from
its account on any one day, if that policy--
(i) Is not dependent on the time the
funds have been deposited in the account, as long as the funds
have been on deposit for the time period specified in Secs. 229.10,
229.12, or 229.13; and
(ii) In the case of withdrawals made
in person to an employee of the depositary bank--
(A) Is applied without discrimination
to all customers of the bank; and
(B) Is related to security, operating,
or bonding requirements of the depositary bank.
(d) Use of calculated availability. A
depositary bank may provide availability to its nonconsumer accounts
based on a sample of checks that represents the average composition
of the customer's deposits, if the terms for availability based
on the sample are equivalent to or more prompt than the availability
requirements of this subpart.
(e) Holds on other funds. (1) A depositary
bank that receives a check for deposit in an account may not place
a hold on any funds of the customer at the bank, where--
(i) The amount of funds that are held
exceeds the amount of the check; or
(ii) The funds are not made available
for withdrawal within the times specified in Secs. 229.10, 229.12,
and 229.13.
(2) A depositary bank that cashes a check
for a customer over the counter, other than a check drawn on the
depositary bank, may not place a hold on funds in an account of
the customer at the bank, if--
(i) The amount of funds that are held
exceeds the amount of the check; or
(ii) The funds are not made available
for withdrawal within the times specified in Secs. 229.10, 229.12,
and 229.13.
(f) Employee training and compliance.
Each bank shall establish procedures to ensure that the bank complies
with the requirements of this subpart, and shall provide each
employee who performs duties subject to the requirements of this
subpart with a statement of the procedures applicable to that
employee.
(g) Effect of Merger Transaction. For
purposes of this subpart, except for the purposes of the new accounts
exception of Sec. 229.13(a), and when funds are considered deposited
under Sec. 229.19(a), two or more banks that have engaged in a
merger transaction may be considered to be separate banks for
a period of one year following the consummation of the merger
transaction.
Sec. 229.20 Relation to state law.
(a) In general. Any provision of a law
or regulation of any state in effect on or before September 1,
1989, that requires funds deposited in an account at a bank chartered
by the state to be made available for withdrawal in a shorter
time than the time provided in subpart B, and, in connection therewith,
subpart A, shall--
(1) Supersede the provisions of the
Act and subpart B, and, in connection therewith, subpart A, to
the extent the provisions relate to the time by which funds deposited
or received for deposit in an account are available for withdrawal;
and
(2) Apply to all federally insured banks
located within the state.
No amendment to a state law or regulation governing the availability
of funds that becomes effective after September 1, 1989, shall
supersede the Act and subpart B, and, in connection therewith,
subpart A, but unamended provisions of state law shall remain
in effect.
(b) Preemption of inconsistent law. Except
as provided in paragraph (a), the Act and subpart B, and, in connection
therewith, subpart A, supersede any provision of inconsistent
state law.
(c) Standards for preemption. A provision
of a state law in effect on or before September 2, 1989, is not
inconsistent with the Act, or subpart B, or in connection therewith,
subpart A, if it requires that funds shall be available in a shorter
period of time than the time provided in this subpart. Inconsistency
with the Act and subpart B, and in connection therewith, subpart
A, may exist when state law--
(1) Permits a depositary bank to make
funds deposited in an account by cash, electronic payment, or
check available for withdrawal in a longer period of time than
the maximum period of time permitted under subpart B, and, in
connection therewith, subpart A; or
(2) Provides for disclosures or notices
concerning funds availability relating to accounts.
(d) Preemption determinations. The Board
may determine, upon the request of any state, bank, or other interested
party, whether the Act and subpart B, and, in connection therewith,
subpart A, preempt provisions of state laws relating to the availability
of funds.
(e) Procedures for preemption determinations.
A request for a preemption determination shall include the following--
(1) A copy of the full text of the state
law in question, including any implementing regulations or judicial
interpretations of that law; and
(2) A comparison of the provisions of
state law with the corresponding provisions in the Act and subparts
A and B of this part, together with a discussion of the reasons
why specific provisions of state law are either consistent or
inconsistent with corresponding sections of the Act and subparts
A and B of this part. A request for a preemption determination
shall be addressed to the Secretary, Board of Governors of the
Federal Reserve System.
Sec. 229.21 Civil liability.
(a) Civil liability. A bank that fails
to comply with any requirement imposed under subpart B, and in
connection therewith, subpart A, of this part or any provision
of state law that supersedes any provision of subpart B, and in
connection therewith, subpart A, with respect to any person is
liable to that person in an amount equal to the sum of--
(1) Any actual damage sustained by that
person as a result of the failure;
(2) Such additional amount as the court
may allow, except that--
(i) In the case of an individual action,
liability under this paragraph shall not be less than $100 nor
greater than $1,000; and
(ii) In the case of a class action--
(A) No minimum recovery shall be applicable
to each member of the class; and
(B) The total recovery under this paragraph
in any class action or series of class actions arising out of
the same failure to comply by the same depositary bank shall not
be more than the lesser of $500,000 or 1 percent of the net worth
of the bank involved; and
(3) In the case of a successful action
to enforce the foregoing liability, the costs of the action, together
with a reasonable attorney's fee as determined by the court.
(b) Class action awards. In determining
the amount of any award in any class action, the court shall consider,
among other relevant factors--
(1) The amount of any damages awarded;
(2) The frequency and persistence of
failures of compliance;
(3) The resources of the bank;
(4) The number of persons adversely affected;
and
(5) The extent to which the failure of
compliance was intentional.
(c) Bona fide errors--(1) General rule.
A bank is not liable in any action brought under this section
for a violation of this subpart if the bank demonstrates by a
preponderance of the evidence that the violation was not intentional
and resulted from a bona fide error, notwithstanding the maintenance
of procedures reasonably adapted to avoid any such error.
(2) Examples. Examples of a bona fide
error include clerical, calculation, computer malfunction and
programming, and printing errors, except that an error of legal
judgment with respect to the bank's obligation under this subpart
is not a bona fide error.
(d) Jurisdiction. Any action under this
section may be brought in any United States district court or
in any other court of competent jurisdiction, and shall be brought
within one year after the date of the occurrence of the violation
involved.
(e) Reliance on Board rulings. No provision
of this subpart imposing any liability shall apply to any act
done or omitted in good faith in conformity with any rule, regulation,
or interpretation thereof by the Board, regardless of whether
such rule, regulation, or interpretation is amended, rescinded,
or determined by judicial or other authority to be invalid for
any reason after the act or omission has occurred.
(f) Exclusions. This section does not
apply to claims that arise under subpart C of this part or to
actions for wrongful dishonor.
(g) Record retention. (1) A bank shall
retain evidence of compliance with the requirements imposed by
this subpart for not less than two years. Records may be stored
by use of microfiche, microfilm, magnetic tape, or other methods
capable of accurately retaining and reproducing information.
(2) If a bank has actual notice that
it is being investigated, or is subject to an enforcement proceeding
by an agency charged with monitoring that bank's compliance with
the Act and this subpart, or has been served with notice of an
action filed under this section, it shall retain the records pertaining
to the action or proceeding pending final disposition of the matter,
unless an earlier time is allowed by order of the agency or court.
Subpart A - General
Subpart C- Collection Of
Checks
Appendices A & B
Appendices C & D
Appendix E
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Appendix F
Credit And Banking
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