The CC regulation improves the service banks provide to their depositors by regulating when funds become available for withdrawals from transaction accounts, based on their origin, amount and other factors. Banks are required to disclose to their customers the timing of the release of blocks. Other rules and policies implemented under the CC Regulation include the Check 21st Century Cheque Clearing Act (Check 21). This legislation was created by Congress as a way to improve the efficiency of the payment system. The Act removed some legal barriers to the electronic processing of cheques. The Act allowed for the creation of a replacement for paper cheques in electronic cheque processing as a legal equivalent of the original cheques. Congress introduced the Accelerated Funds Availability Act of 1987 because of concerns about how long banks hold checks after customers deposit them. The Expedited Funds Availability Act created a maximum hold period for cheques. The CC Regulation brought into force the provisions of the Act relating to disclosure and availability. The CC regulation requires financial institutions to provide customers who manage accounts with information about when deposited funds are available for withdrawal. Your institution is required to establish procedures to ensure that it complies with the requirements of the CC Regulation and to provide a copy of these procedures to all staff performing tasks affected by the Regulation. For example, employees who issue hold notifications should be informed when funds should be held and how clients should be informed that funds are being held. In 1987, Congress passed the Expedited Funds Availability Act (PDF) (EFAA) to address concerns about the length of locks banks placed on checks deposited by their customers at the time.

The EFAA sets the maximum allowable holding periods for cheques and other deposits. The Committee`s CC Regulation (12 CFR Part 229) implements the EFAA`s provisions on availability of funds and disclosure in subsection B of the regulation. In 2003, Congress passed the Check Clearing for the 21st Century Act (PDF) (Check 21), which aimed to improve the efficiency of the payment system by reducing legal barriers to electronic check processing. Check 21 facilitated the electronic settlement of cheques by creating a new type of paper instrument called a replacement cheque, which is the legal equivalent of the original cheque for all purposes. Check 21 creates replacement cheque guarantees, compensation and expedited recredit procedures for consumers. Control 21 is implemented in Subsection D of the CC Regulation. Cash deposits and electronic payments are not eligible for exemptions. The six types of filings that come into question are This table of contents is a navigation tool that is processed from the titles in the legal text of Federal Register documents.

This repetition of titles to internal navigation links has no substantial legal effect. If you decide to withhold funds beyond the period specified in your institution`s general availability policy, you must provide the client with notice at the time of deposit as to why the funds are being held and when they will be available. If the deposit is not made in person with an employee of your institution, or if you decide to extend the period within which deposited funds are made available after the deposit, you must mail or deliver the notice no later than the first business day following the business day on which the deposit was made. CC regulation is one of the Federal Reserve`s banking regulations. The CC Regulation implements the Accelerated Availability of Funds Act (ATIA) of 1987 and the Cheque Clearing Act for the 21st Century (Check 21). These laws set specific requirements for the timely availability of deposits made by customers into transaction accounts. These laws dealt with the holding period that banks had previously set on cheques deposited by customers. This does not apply to deposits at non-exclusive ATMs or deposits subject to certain exceptions. Further explanation can be found in Article 229.13 of the CC Regulation. For certain types of deposits, the CC Regulation allows financial institutions to defer the availability of funds for a “reasonable period of time”.

A “reasonable” time frame is generally defined as an additional business day (two business days in total) for U.S. checks and an additional five business days (seven in total) for local checks; Your institution may require longer exemptions, but you may need to prove that they are “appropriate”. (1) A paying bank or a returning bank shall not be liable to a custodian bank under section 229.38 for failure to return a cheque promptly unless the paying bank or the returning bank has arranged for the bank making the payment or the returning bank to return a returned cheque electronically, directly or indirectly to the custodian bank. by economically justifiable means. There are minor exceptions, such as certain checks deposited outside the continental United States and cash withdrawals from the proceeds of certain checks. A detailed explanation can be found in Article 229.12 of the CC Regulation. (3) Amount of adjustment. The amount of adjustment for each dollar amount referred to in paragraph (a) of this section is equal to the aggregate percentage change multiplied by the existing dollar amount specified in paragraph (c) of this Division and rounded to the nearest multiple of $25.

The adjusted amount is equal to the sum of the existing dollar amount and the amount of the adjustment. No dollar adjustment shall be made if the overall percentage change is zero or negative, or if the overall percentage change multiplied by the existing dollar amount set out in paragraph (c) and rounded to the nearest multiple of $25 does not result in any change. By highlighting the rules in these areas and examples illustrating the application of the rules, this guide can answer your institute`s questions about the CC Regulation. Keep in mind, however, that the Expedited Funds Availability Act requires that the first $200 of a deposit that is not already subject to availability next day be available no later than the first business day following the day of deposit. Your institution must post a notice of your availability policy for consumer accounts at each location where employees accept consumer deposits. The notification must explicitly indicate the periods of availability for the different types of deposits that can be made to consumer accounts. The notice does not need to be posted on every cash outlet, but it must be posted in a location where consumers who wish to make deposits are likely to see it before making their deposits.