1. Lines A1c and A2

2. Transaction Accounts What is a transaction account?
Transfers or Withdrawals through:
ATMs
Checks
Debit Cards
Unlimited amount of transactions
Unlimited amount of transactions as opposed to savings and time deposits which will be covered later

3. Transaction Accounts Always regarded as transaction accounts:
Demand Deposits
NOW Accounts
Share Draft Accounts
ATS (automatic transfer service) Accounts
**Share draft accounts is a share account from which funds may be withdrawn or transferred to third parties by issuance of a negotiable or transferable instrument or other order.**** Similar to checking accounts, but held at credit unions.

4. Line A1C (Other Demand Deposits)
Include deposits held for :
Individuals, Partnerships, Corporations, State & Local Governments
Foreign Governments and International Institutions
US Government Agencies

5. Line A1C (Other Demand Deposits)
Include:
Official Checks
Cashier’s Checks
Teller’s Checks
Money Orders
Traveler’s Checks or Teller’s Checks whose funds have not cleared
See page 14 & 15 of 2900 instructions
Give the difference between cashiers and travelers checks page 32 #4
Cashier’s checks have no float b/c written on D1
Teller’s checks have float because they’re payable through a 3rd party.
Cashiers checks do not go through travelers express
Primary Obligations mature or are demandable in less than seven days

6. Line A1C (Other Demand Deposits)
Primary Obligations
Mature/Demandable in less than 7 days
Money Orders drawn on the bank and outstanding on the report date
Unposted Credits
Suspense Accounts
Time deposits-must meet Reg. D requirements (simple interest and seven days) Page 33 #13

7. Line A1C (Other Demand Deposits)
Escrow Accounts
Withdrawn within 6 days from date of deposit
Not qualifying non-transaction accounts
Time deposits
Early withdrawal
Matured
Savings accounts which allow transaction limits to be exceeded
Only include those escrow accounts setup as transaction accounts
Page 17
Refer to Treatment of Trust Funds

8. Line A1C (Other Demand Deposits)
Exclude:
Escrow Funds held in DI’s Trust Department
Overdrawn Accounts (report as zero)
Deposits due to Depository Institutions (A1a)
Deposits due to U.S. Government (A1b)
Savings Deposits (C1)
Time Deposits (D1/F1)

9. Line A1C (Other Demand Deposits)
Common reporting errors:
Reporting Overdrawn Accounts
Failure to report
Unposted Credits
Suspense Accounts
Official Checks
Official checks such as traveler’s checks, money orders, cashier’s checks, teller’s checks)

10. Line A2 (ATS, NOW/Share Drafts, and Telephone and Preauthorized transfers)

11. Line A2 (ATS, NOW/Share Drafts, and Telephone and Preauthorized transfers)
Include:
Interest Bearing Checking Accounts (NOW)
Automatic Transfer Service Accounts (ATS)
Telephone and Preauthorized Transfer Accounts
Share Drafts (for Credit Unions)
Meet the definition of a time deposit
Allow payments to be made by third-parties
Debit Cards
ATM’s
Remote Service Unit
NOW accounts should not be confused with NINOW accounts which go in A1C and do not require advanced notice of withdrawal.

12. Line A2 (ATS, NOW/Share Drafts, and Telephone and Preauthorized transfers)
Eligible to hold NOW accounts:
Individuals or Sole Proprietorships
Nonprofit Organizations
Domestic Government Units
IOLTA
As long as institution reserves right to require 7 days advance notice.
Nonprofit organizations
Philanthropic
Religious
Educational
Political;
Ineligible organizations which have been permitted to deposit funds into a NOW account that is held in connection with an IOLTA

13. Line A2 (ATS, NOW/Share Drafts, and Telephone and Preauthorized transfers)
Automatic Transfer Service Accounts (ATS)
Overdraft protection
Automatic payments to reporting institution
Transfers made to an account to cover checks or drafts drawn on the reporting institution
Transfers made to maintain a minimum account balance
These are only for individuals and sole proprietorships
2nd bullet: these are NOT transfers to 3rd parties
PROVIDE A VERBAL DECRIPTION OF AN ATS AND BULEET THE REST

14. Line A2 (ATS, NOW/Share Drafts, and Telephone and Preauthorized transfers)
Oral or Written Arrangement
Unlimited Withdrawals
Predetermined Time or on a Fixed Schedule
Example: Automatic bill payment services offered by the reporting institution.
Oral/written between reporting institution and account holder to pay a 3rd party
This contrasts with ATS accounts because those do not include transfers to 3rd parties

15. Line A2 (ATS, NOW/Share Drafts, and Telephone and Preauthorized transfers)
Share Draft Accounts
Interest and Non-Interest bearing accounts
Withdrawable on demand
Credit Union reserves the right to require up to 60 days prior notice of withdrawal
Include only member accounts. Do not credit union’s account at another credit union. This goes in B1.

16. Line A2 (ATS, NOW/Share Drafts, and Telephone and Preauthorized transfers)
Common reporting errors:
Including ineligible non-personal accounts
Including transaction accounts that do not require advance written notice of withdrawal
Incorrect GL mapping into/out of A2
Corporate accounts are the biggest example of ineligible accounts, businesses are not allowed to receive interest on checking accounts. Incorrect GL mapping: Including accounts that should be in A1C or C1 in A2 or including accounts that should be in A2 in line A1C or C1

17. Line A2 (ATS, NOW/Share Drafts, and Telephone and Preauthorized transfers)
IMPORTANT
Account terms and disclosures must state that the institution reserves the right to require 7 days advance written notice of withdrawal. While these rights may not be exercised, not having them in the terms disqualifies them from being included in line A2.

18. Where do these accounts go?
Line Item
Account Holder A2
IOLTA Checking Account
A1c
Quality Inc. Checking Account
Jane Doe’s overdrawn checking account
A1c/A2
Girl Scouts interest bearing checking account A2
Lisa’s share draft account at ZY Credit Union A2

19. Things To Consider Line A1c or Line A2 Interest Bearing/
Non-Interest Bearing
Advance Notice of Withdrawal
Account Disclosures/Terms
Line A1c or Line A2
Type of Financial
Institution
Account Holder
General Ledger

20. Legitimate Differences Commercial Banks
FR2900>FFIEC031/041
Primary Obligations
Teller Checks
Commingled Trust Accounts

21. Legitimate Differences Savings and Loans
FR2900>OTS 1313
Primary Obligations
Tellers Checks
FR2900<OTS 1313
2900 excludes escrow accounts that DI keeps properly segregated as trust funds.

22. Legitimate Differences Credit Unions
FR2900>NCUA 5300
Share Draft accounts that exceed transaction limits or are not monitored
FR2900<NCUA 5300
2900 excludes balances at non-US branches of the credit union
#1- these are included as share accounts on call

23. Lines A1C and A2
Questions????