I 

108TH CONGRESS 

2D SESSION H. R. 5410 

To amend the Expedited Funds Availability Act to redress imbalances between 

the faster withdrawals permitted under the Check 21 Act and the slower 

rates for crediting deposits, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2004 

Mrs. MALONEY (for herself, Mr. JACKSON of Illinois, Mr. ENGEL, and Mr. 

MARKEY) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Expedited Funds Availability Act to redress 

imbalances between the faster withdrawals permitted 

under the Check 21 Act and the slower rates for crediting deposits, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Checking 

5 Account Fairness Act’’. 
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1 SEC. 2. ADJUSTMENT OF CHECK HOLD PERIODS RE2 QUIRED. 

3 (a) IN GENERAL.—Section 603(d) of the Expedited 

4 Funds Availability Act (12 U.S.C. 4002(d)) is amended 

5 by adding at the end the following new paragraph: 

6 ‘‘(3) COORDINATION WITH CHECK CLEARING

7 FOR THE 21ST CENTURY ACT.— 

8 ‘‘(A) IN GENERAL.—The Board shall pre9 scribe regulations under paragraph (1)— 

10 ‘‘(i) to reduce the time periods under 

11 subsections (a), (b), or (e), in accordance 

12 with the requirements of paragraph (1), to 

13 take into account the time within which 

14 any receiving institution can reasonably ex15 pect to learn of the nonpayment of most 

16 items for each category of checks under 

17 the Checking Clearing for the 21st Cen18 tury Act or the regulations implementing 

19 such Act; or 

20 ‘‘(ii) to eliminate distinctions between 

21 the schedules established under subsections 

22 (a), (b), or (e) if the Board finds that such 

23 distinctions no longer have any significance 

24 for any category of checks under the 

25 Checking Clearing for the 21st Century 
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1 Act or the regulations implementing such 

2 Act. 

3 ‘‘(B) PARAGRAPH (2) ADJUSTMENTS.—The 

4 Board may, by regulation, eliminate the exten5 sion provided under paragraph (2) for deposits 

6 of any category of checks if the Board finds 

7 that the extension has no practical necessity 

8 under the Checking Clearing for the 21st Cen9 tury Act or the regulations implementing such 

10 Act.’’. 

11 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

12 Paragraph (2) of section 603(d) of the Expedited Funds 

13 Availability Act (12 U.S.C. 4002(d)) is amended by insert14 ing ‘‘(other than regulations prescribed under paragraph 

15 (3)(B))’’ after ‘‘any other provision of law’’. 

16 (c) REGULATIONS.—The Board shall prescribe the 

17 regulations required under the amendment made by sub18 section (a) in final form before the end of the 6-month 

19 period beginning on the date of the enactment of this Act. 

20 SEC. 3. AMENDMENTS RELATING TO CHECKING ACCOUNT 

21 CONSUMERS. 

22 (a) DEPOSITS AT PROPRIETARY ATMS.—Section 

23 603(a)(2) of the Expedited Funds Availability Act (12 

24 U.S.C. 4002(a)(2)) is amended— 
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1 (1) in subparagraphs (B)(ii) and (C)(ii), by in2 serting ‘‘or is deposited at a proprietary ATM’’ be3 fore the semicolon at the end of each such subpara4 graph; and 

5 (2) in subparagraph (E), by inserting ‘‘, or a 

6 check deposited at a proprietary ATM,’’ after ‘‘de7 posited in a branch of a depository institution’’. 

8 (b) LIMITATION ON CERTAIN FEES DURING CHECK

9 HOLD PERIOD.—Section 607 of the Expedited Funds 

10 Availability Act (12 U.S.C. 4006) is amended by adding 

11 at the end the following new subsection: 

12 ‘‘(f) LIMITATION ON CERTAIN FEES DURING CHECK

13 HOLD PERIOD.—If a receiving depository institution has 

14 received a provisional or final settlement with respect to 

15 a check deposited in an account at the depository institu16 tion and such depository institution has not yet made the 

17 proceeds of the deposit available to the accountholder, the 

18 receiving depository institution may not assess any fee for 

19 an overdraft, or any fee associated with the payment of 

20 an overdraft, that would not have occurred if such funds 

21 so deposited were available.’’. 

22 (c) CREDITS REQUIRED TO BE POSTED BEFORE

23 DEBITS.—Section 607 of the Expedited Funds Avail24 ability Act (12 U.S.C. 4006) is amended by inserting after 
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1 subsection (f) (as added by subsection (b) of this section) 

2 the following new subsection: 

3 ‘‘(g) ORDER OF POSTING.—In the process of posting 

4 credits and debits against a checking account used pri5 marily for personal, family, or household purposes after 

6 the close of any business day, the receiving depository in7 stitution shall credit all deposits to the account before deb8 iting any check drawn on the account and presented to 

9 the depository institution for payment.’’. 

10 (d) SATURDAYS MAY BE TREATED AS BUSINESS

11 DAYS.—Section 602(3) of the Expedited Funds Avail12 ability Act (12 U.S.C. 4001(3)) is amended by adding at 

13 the end the following new sentence: ‘‘For purposes of this 

14 title, however, Saturday shall be treated as a business day 

15 in the calculation of any period within which funds depos16 ited in an account at a receiving depository institution are 

17 required be made available under this title, if with respect 

18 to checks received by the depository institution for which 

19 it is the originating institution, the depository institution 

20 debits accounts on Saturdays for such checks.’’. 

21 (e) REDUCTION IN CHECK HOLDS FOR NONLOCAL

22 CHECK DEPOSITS.—Section 603(b)(2) of the Expedited 

23 Funds Availability Act (12 U.S.C. 4002(b)(2)) is amended 

24 by striking ‘‘not more than 4 business days shall intervene 
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1 between’’ and inserting ‘‘funds shall be made available on 

2 the 2nd business day after’’. 

3 (f) ADJUSTMENT FOR INFLATION FOR LARGE CHECK

4 LIMITATION.— 

5 (1) IN GENERAL.—Section 604(a)(3) of the Ex6 pedited Funds Availability Act (12 U.S.C. 

7 4003(a)(3)) is amended by striking ‘‘$5,000’’ each 

8 place such term appears and inserting ‘‘$7,500’’. 

9 (2) CLERICAL AMENDMENT.—The paragraph 

10 heading for section 604(a)(3) of the Expedited 

11 Funds Availability Act is amended by striking 

12 ‘‘$5,000’’ and inserting ‘‘$7,500’’ . 

13 (g) ADJUSTMENT FOR SMALL DEPOSIT AVAIL14 ABILITY.—Section 603(a)(2)(D) of of the Expedited 

15 Funds Availability Act (12 U.S.C. 4002(a)(2)(D)) is 

16 amended by striking ‘‘$100’’ and inserting ‘‘$500’’. 

17 (h) FEES FOR SERVICES NOT REQUESTED.—Section 

18 607 of the Expedited Funds Availability Act (12 U.S.C. 

19 4006) is amended by inserting after subsection (g) (as 

20 added by subsection (c) of this section) the following new 

21 subsection: 

22 ‘‘(h) FEES FOR SERVICES NOT REQUESTED.—No de23 pository institution may impose any fee for paying any 

24 check drawn on an account in spite of a lack of sufficient 

25 funds in the account to pay such check or any similar ac-
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1 tivity (commonly referred to as ‘bounce protection’) unless 

2 the accountholder has affirmatively requested such serv3 ice.’’. 

4 (i) CLARIFICATION OF PREEMPTION.—Section 608 of 

5 the Expedited Funds Availability Act (12 U.S.C. 4007) 

6 is amended— 

7 (1) in subsection (b)— 

8 (A) by inserting ‘‘or (c)’’ after ‘‘subsection 

9 (a)’’; and 

10 (B) by inserting ‘‘, but only to the extent 

11 of any such inconsistency’’ before the period at 

12 the end; and 

13 (2) by adding at the end the following new sub14 section: 

15 ‘‘(c) CLARIFICATION OF INCONSISTENCY.—A State 

16 law shall not be construed as inconsistent with this title, 

17 or any regulation prescribed under this title, if the protec18 tion such law affords the consumer by such law is greater 

19 than the protection afforded by this title. For purposes 

20 of determining congressional intent with respect to pre21 emption, the purpose of this title shall be construed to be 

22 the establishment of a minimum basis of protection for 

23 the consumer and not the creation of a uniform national 

24 rule.’’. 
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1 SEC. 4. RECREDIT FOR ALL CONSUMERS UNLESS SUB2 STITUTE CHECKS ARE PROVIDED WITHOUT 

3 COST UPON REQUEST. 

4 Section 7(b) of the Checking for the 21st Century 

5 Act (12 U.S.C. 5006(b)) is amended by adding at the end 

6 the following new paragraph: 

7 ‘‘(3) FEES FOR SUBSTITUTE CHECKS.—If any 

8 bank that holds the account of a consumer imposes 

9 any fee for producing a copy of a substitute check 

10 for such consumer with respect to such account, the 

11 expedited recredit process established under this sec12 tion shall be available for all charges against any 

13 such account without regard to whether a substitute 

14 check was involved or not.’’. 

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