[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:
    <bullet> U.S. Treasury checks that are payable to you.
    <bullet> Wire transfers.
    <bullet> 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:
    <bullet> Cash.
    <bullet> 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)].
    <bullet> 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)].
    <bullet> 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:
    <bullet> We believe a check you deposit will not be paid.
    <bullet> You deposit checks totaling more than $5,000 on any one 
day.
    <bullet> You redeposit a check that has been returned unpaid.
    <bullet> You have overdrawn your account repeatedly in the last 
six months.
    <bullet> 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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