[Federal Register Volume 62, Number 180 (Wednesday, September 17, 1997)]
[Rules and Regulations]
[Pages 48752-48754]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-24702]
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FEDERAL RESERVE SYSTEM
12 CFR Part 229
[Regulation CC; Docket No. R-0926]
Availability of Funds and Collection of Checks; Correction
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule; correction to an amendment.
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SUMMARY: The Board is correcting an amendment to Regulation CC
(Availability of Funds and Collection of Checks) that appeared in the
Federal Register on March 24, 1997. This document corrects an error
that appeared in Model Availability Policy Disclosure C-5 concerning
statutory limits on funds availability of all deposits.
EFFECTIVE DATE: October 17, 1997.
FOR FURTHER INFORMATION CONTACT: Obrea Poindexter, Staff Attorney (202/
452-3667), Division of Consumer and Community Affairs. For the hearing
impaired only, contact Diane Jenkins, Telecommunications Device for the
Deaf (TDD) (202/452-3544), Board of Governors of the Federal Reserve
System, 20th and C Streets, N.W., Washington, D.C. 20551.
SUPPLEMENTARY INFORMATION: On March 24, 1997 (62 FR 13801), the Board
published amendments to Regulation CC (12 CFR part 229) to clarify the
regulation and, in specified circumstances, reduce the compliance
burden for depository institutions. Appendix C to Part 229 contains
model availability policy disclosures, clauses and notices to
facilitate compliance by banks with the disclosure requirements of
Regulation CC. This document corrects an error that appeared in Model
Availability Policy Disclosure C-5 concerning statutory limits on funds
availability of all deposits.
In Model Availability Policy Disclosure C-5, the sentence that
begins ``If you deposit both categories of checks * * *'' was
inadvertently placed under the subheading ``Longer Delays May Apply.''
As the sentence does not pertain to exception holds pursuant to the
funds availability policy, it is removed. The sentence, which
stipulates the availability policy for the deposit of both local and
nonlocal checks, should have instead appeared below the heading ``Other
Check Deposits.'' To accommodate the sentence, a new subheading has
been added, titled ``3. Local and nonlocal checks,'' and the sentence
is placed under the newly formed subheading.
As this is a technical correction that does not affect the
substance of Regulation CC, 5 U.S.C. 553 does not require publication
for comment.
Banks that use earlier versions of the model forms are protected
from civil liability under Sec. 229.21(e), but all banks are encouraged
to use the new versions when reordering or reprinting supplies.
Final Regulatory Flexibility Analysis
The technical correction should not have a negative impact on small
institutions.
List of Subjects in 12 CFR Part 229
Banks, banking, Federal Reserve System, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 12 CFR part 229 is
amended as follows:
PART 229--AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS
(REGULATION CC)
1. The authority citation for Part 229 continues to read as
follows:
Authority: 12 U.S.C. 4001 et seq.
2. In Appendix C to part 229, the Model Availability Policy
Disclosure C-5 is revised to read as follows:
Appendix C to Part 229--Model Availability Policy Disclosures, Clauses,
and Notices
* * * * *
C-5--Holds to Statutory Limits on All Deposits
Your Ability To Withdraw Funds
Our policy is to delay the availability of funds from your cash
and check deposits. During the delay, you may not withdraw the funds
in cash and we will not use the funds to pay checks that you have
written.
Determining the Availability Of A Deposit
The length of the delay is counted in business days from the day
of your deposit. Every day is a business day except Saturdays,
Sundays, and federal holidays. If you make a deposit before (time of
day) on a business day that we are open, we will consider that day
to be the day of your deposit. However, if you make a deposit after
(time of day) or on a day we are not open, we will consider that the
deposit was made on the next business day we are open.
The length of the delay varies depending on the type of deposit
and is explained below.
Same-Day Availability
Funds from electronic direct deposits to your account will be
available on the day we receive the deposit.
Next-Day Availability
Funds from the following deposits are available on the first
business day after the day of your deposit:
U.S. Treasury checks that are payable to you.
Wire transfers.
Checks drawn on (bank name) [unless (any limitations
related to branches in different states or check processing
regions)].
If you make the deposit in person to one of our employees, funds
from the following deposits are also available on the first business
day after the day of your deposit:
Cash.
State and local government checks that are payable to
you [if you use a special deposit slip available from (where deposit
slip may be obtained)].
Cashier's, certified, and teller's checks that are
payable to you [if you use a special deposit slip available from
(where deposit slip may be obtained)].
Federal Reserve Bank checks, Federal Home Loan Bank
checks, and postal money orders, if these items are payable to you.
If you do not make your deposit in person to one of our
employees (for example, if you mail the deposit), funds from these
deposits will be available on the second business day after the day
we receive your deposit.
Other Check Deposits
The delay for other check deposits depends on whether the check
is a local or a nonlocal check. To see whether a check is a local or
a nonlocal check, look at the routing number on the check:
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If the first four digits of the routing number (1234 in the
examples above) are (list of local numbers), then the check is a
local check. Otherwise, the check is a nonlocal check. Some checks
are marked ``payable through'' and have a four- or nine-digit number
nearby. For these checks, use the four-digit number (or the first
four digits of the nine-digit number), not the routing number on the
bottom of the check, to determine if these checks are local or
nonlocal. Our policy is to make funds from local and nonlocal checks
available as follows.
1. Local checks. The first $100 from a deposit of local checks
will be available on the first business day after the day of your
deposit. The remaining funds will be available on the second
business day after the day of your deposit.
For example, if you deposit a local check of $700 on a Monday,
$100 of the deposit is available on Tuesday. The remaining $600 is
available on Wednesday.
2. Nonlocal checks. The first $100 from a deposit of nonlocal
checks will be available on the first business day after the day of
your deposit. The remaining funds will be available on the fifth
business day after the day of your deposit.
For example, if you deposit a $700 nonlocal check on a Monday,
$100 of the deposit is available on Tuesday. The remaining $600 is
available on Monday of the following week.
3. Local and nonlocal checks. If you deposit both categories of
checks, $100 from the checks will be available on the first business
day after the day of your deposit, not $100 from each category of
check.
Longer Delays May Apply
Funds you deposit by check may be delayed for a longer period
under the following circumstances:
We believe a check you deposit will not be paid.
You deposit checks totaling more than $5,000 on any one
day.
You redeposit a check that has been returned unpaid.
You have overdrawn your account repeatedly in the last
six months.
There is an emergency, such as failure of computer or
communications equipment.
We will notify you if we delay your ability to withdraw funds
for any of these reasons, and we will tell you when the funds will
be available. They will generally be available no later than the
(number) business day after the day of your deposit.
Special Rules For New Accounts
If you are a new customer, the following special rules will
apply during the first 30 days your account is open.
Funds from electronic direct deposits to your account will be
available on the day we receive the deposit. Funds from deposits of
cash, wire transfers, and the first $5,000 of a day's total deposits
of cashier's, certified, teller's, traveler's, and federal, state
and local government checks will be available on the first business
day after the day of your deposit if the deposit meets certain
conditions. For example, the checks must be payable to you (and you
may have to use a special deposit slip). The excess over $5,000 will
be available on the ninth business day after the day of your
deposit. If your deposit of these checks (other than a U.S. Treasury
check) is not made in person to one of our employees, the first
$5,000 will not be available until the second business day after the
day of your deposit.
Funds from all other check deposits will be available on the
(number) business day after the day of your deposit.
* * * * *
[[Page 48754]]
By order of the Board of Governors of the Federal Reserve
System, under delegated authority, September 12, 1997.
William W. Wiles,
Secretary of the Board.
[FR Doc. 97-24702 Filed 9-16-97; 8:45 am]
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