New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 34 - Availability Of Funds For Items Deposited For Collection › Section 34.5 - Exceptions

Current through Register Vol. 46, No. 28, July 10, 2024
The exceptions to the requirements imposed under section
				  34.3  of this Part are
				  as follows:
(a) For any deposited item
				drawn in an amount of more than $5,000, the availability of funds shall be
				determined according to the depositary bank's policy or, if the customer elects
				to have the item so cleared on a collection basis (i.e., noncash item basis).
				Where more than one item, each drawn in an amount no greater than $5,000,
				totalling an amount in excess of $5,000, is deposited in one business day, the
				availability of funds for the item or items that bring the amount deposited to
				an amount in excess of $5,000, shall be determined according to the depositary
				bank's policy or, if the customer elects to have the item(s) so cleared, on a
				collection basis (i.e., noncash item basis).
(b) With respect to items deposited by a new
				customer at a depositary bank, the availability of funds for any item deposited
				within 30 calendar days of the opening of an account by such customer shall be
				subject to the depositary bank's policy.
(c) If any account or combination of accounts
				of a customer has been overdrawn on three separate and distinct occasions
				within a six-month period all accounts of that customer will be subject to the
				depositary bank's policy regarding the availability of funds, for a period of
				six months commencing with the last return for insufficient funds. This
				exception does not include accounts with overdraft privileges established
				pursuant to contractual agreement unless the customer's credit line has been
				exceeded.
(d) In an instance where
				the depositary bank in good faith doubts the collectibility of funds for an
				item (e.g., suspicion of bankruptcy of the drawer of a check, suspicion of
				fraud), the depositary bank may make funds available for such item on a
				collection basis, or according to the depositary bank's policy. The customer of
				the account must be notified by the depositary bank of this action as soon as
				possible.
(e) The availability of
				funds shall be governed by the depositary bank's policy in the case of any
				items drawn on an office, including an office of the depositary bank, located
				outside any of the United States and the District of Columbia.
(f) Nothing contained in this Part shall
				prohibit a depositary bank and a retail customer from agreeing in writing to a
				greater period of time than that prescribed by this Part for making funds
				available for withdrawal because of special circumstances, provided that such
				agreement is not contained in a preprinted form and is not a usual, regular
				business practice of the depositary bank.
(g) Delay by a depositary bank beyond time
				limits prescribed or permitted by this Part is excused if caused by
				interruption of communication facilities, suspension of payments by another
				bank, war, emergency conditions or other circumstances beyond the control of
				the depositary bank provided it exercises such diligence as the circumstances
				require.