Regulation CC

1
Regulation CC

• Funds Availability
• Presented By Your name here

2
Objectives

• Overview of your bank Funds Availability
  Policy
• Basic Terminology
• Everything is Local, now
• Types of Checks
• Same Day Availability

3
Objectives Continued

• Next business day availability
• Case-by-case hold
• Exception hold
• Applying the rules
• Q A session

4
Funds Availability Policy

• Your banks Funds Availability Policy allows
  next day availability on all deposited checks
  into an account, however we reserve the right to
  hold funds for additional periods of time.
• Customize this slide for your bank

5
Basic Terminology

• Banking day-The part of any business day that the
  bank is open to the public.
• Business day-Any day except Saturday, Sunday, or
  a legal holiday.
• Check-A negotiable demand draft drawn on or
  payable through a bank.
• Depositary bank-The bank in which funds are
  deposited.

6
Basic Terminology Continued

• Paying Bank-The bank that the check is drawn on.
• On-us check-A check deposited into the
  institution on which it was drawn.
• Local check Now includes all checks other than
  next day items.

7
Types of Checks

• U.S. Treasury checks
• Federal Reserve Bank checks
• State and local government checks

• U.S. Postal Money Orders
• Travelers Checks
• Check payable through or at an office of a bank

8
Same Day Availability

• Automated Clearinghouse (ACH) transfers including
  Social Security and electronic payroll must be
  made available for withdrawal on the
  same-business day the institution receives the
  funds.

9
Next Business Day Availability

• Treasury Checks
• Wire Transfers
• Money Orders

10
Next-business Day Availability

• Government Checks
• Federal Reserve Bank Checks
• On-us Checks
• Cashiers Checks/Official Checks
• First 100 of aggregate other checks deposited by
  a customer on any one banking day

11
Second-business Day Availability

• Non next-day checks deposited into an account
  that are subject to a case-by-case hold as
  determined by the teller completing the
  transaction.

12
Exception Holds

• New Account
• Large Deposit
• Redeposited Check
• Repeated Overdrafts
• Reasonable Cause to Doubt Collectibility
• Emergency Conditions

13
Seventh-business Day Availability

• Checks that are subject to an exception hold as
  determined by the teller completing the
  transaction.

14
Ninth Business Day Availability

• Excess of first 5,000 of next-day checks
  (including travelers checks) deposited to a new
  account.

15
Nth-business Day Availability

• Non next-day checks deposited to a new account.
• Customize title for correct number of days for
  your bank

16
(No Transcript)
17
Applying Funds Availability Rules

• Your institution is open for all business
  functions on Saturday. Customer Jones deposits a
  4,000 U.S. Treasury Check payable to him with a
  teller on Saturday. When must the funds be made
  available? (Examples of Availability Rules,
  http//www.federalreserve.gov/pubs/regcc/examples.
  htm, accessed February 11, 2003.)

18
Applying the Rules Continued

• Customer Jackson deposits a 400 non-next day
  check payable to him with a teller at 1000 a.m.
  on Monday. When must the funds be made
  available? (Examples of Availability Rules,
  http//www.federalreserve.gov/pubs/regcc/examples.
  htm, accessed February 11, 2003.)

19
Applying the Rules Continued

• Customer Palmer deposits a 10,000 non next-day
  check payable to him with a teller at 1000 a.m.
  on Monday. When must the funds be made
  available? (Examples of Availability Rules,
  http//www.federalreserve.gov/pubs/regcc/examples.
  htm, accessed February 11, 2003.)

20
Applying the Rules Continued

• Customer Washington deposits a 400 non next-day
  check payable to her at 405 p.m. on Monday.
  When must the funds be available? (Examples of
  Availability Rules, http//www.federalreserve.gov/
  pubs/regcc/examples.htm, accessed February 11,
  2003.)

21
Q A Session

• Please feel free to ask any questions or state
  any comments regarding Regulation CC.