Regulation CC

Question 1

Applicability of Reg CC

Answer 1

1) Defines when funds must be made available for withdrawal in transaction accounts
2) Applies to consumer and commercial accounts

Question 2

Business Day - Reg CC

Answer 2

Any day that is not a weekend or Federal holiday

This is not dependent on when your bank is open for business

Question 3

Banking Day - Reg CC

Answer 3

1) Business day when the deposit is made
2) this is when your bank is open for business
3) a deposit made after the cutoff time is considered made the following banking day (not earlier than 2 pm or noon for deposit taking ATMs)

Question 4

Next Day Availability Items - Reg CC

Answer 4

Funds must be made available one business day after the banking day of deposit

1) cash (deposited in person otherwise second day)
2) electronic payments
3) on-us checks
4) certain items deposited into payees account
- treasury checks
- state or local governments checks
- postal money orders
- federal reserve checks
5) the first $200 of non-next day items

Question 5

Second Day Availability Items - Reg CC

Answer 5

1) checks

2) next day type items that don’t qualify for next day availability

Question 6

Exception Holds - Reg CC

Answer 6

An exception hold is a reason to delay availability.

Taking an exception hold allows you to delay availability for an additional 5 days (7 days total)

• required to give a notice to the customer at the time the hold is taken with reason(s) for the hold
• allow you to hold the entire amount of the deosit (even the first $200), except for the first $5,000 for the large deposit hold

Question 7

Types of Exception Holds - Reg CC

Answer 7

1) New Account
- applies for the first 30 days the account is open
- does not apply to deposits of cash, electronic payments, or the first $5,000 of official type check (govt., postal money order, etc.)
2) Large Deposits (only the amount over $5,000)
3) Checks that are re-deposited
4) Customers who repeatedly overdraft their account
5) Emergency conditions (fire, water damage, etc.)
6) Reasonable cause (can’t hold category of checks ex. insurance checks)
- have a reasonable suspicion as to the validity of the check
- normally the most common exception

Question 8

Case-by-Case Holds - Reg CC

Answer 8

1) Applies when the bank’s general policy is to make deposits available sooner than statutory limits (ex. all next day)
2) The hold applies when the bank wishes to hold funds from a questionable deposit up to the statutory limit
3) Notice to customer is required, but don’t need to give a reason
4) Can only hold funds to the statutory time limits
- if bank wants to hold it longer, take an exception hold
5) The first $200 must be available here

Question 9

Disclosures - Reg CC

Answer 9

1) Funds availability policy must be available to customers (provided when new transaction account is opened)
2) Must post availability signs where deposits may be taken (teller windows, new account desks)
3) Pre-printed deposit slips (“Funds may not be available for immediate withdrawal”)
- doesn’t need to be on drive thru lane due to this
4) Signs on ATMs
5) 30 days written notice before changing policy
- Before if to customer’s detriment;
- After if to benefit or neutral