Regulation CC Funds Availability Presented By: [Your name here]

Objectives Overview of [your bank’] Funds Availability Policy Basic Terminology Everything is Local, now Types of Checks Same Day Availability

Objectives Continued… Next business day availability Case-by-case hold Exception hold Applying the rules Q & A session

Funds Availability Policy [Your bank’s] Funds Availability Policy allows next day availability on all deposited checks into an account, however we reserve the right to hold funds for additional periods of time. [Customize this slide for your bank]

Basic Terminology Banking day-The part of any business day that the bank is open to the public. Business day-Any day except Saturday, Sunday, or a legal holiday. Check-A negotiable demand draft drawn on or payable through a bank. Depositary bank-The bank in which funds are deposited.

Basic Terminology Continued… Paying Bank-The bank that the check is drawn on. On-us check-A check deposited into the institution on which it was drawn. Local check –Now includes all checks other than “next day” items.

Types of Checks U.S. Treasury checks Federal Reserve Bank checks State and local government checks U.S. Postal Money Orders Traveler’s Checks Check payable through or at an office of a bank

Same Day Availability Automated Clearinghouse (ACH) transfers including Social Security and electronic payroll must be made available for withdrawal on the same- business day the institution receives the funds.

Next Business Day Availability Treasury Checks Wire Transfers Money Orders

Next-business Day Availability Government Checks Federal Reserve Bank Checks On-us Checks Cashier’s Checks/Official Checks First $100 of aggregate other checks deposited by a customer on any one banking day

Second-business Day Availability Non next-day checks deposited into an account that are subject to a case-by-case hold as determined by the teller completing the transaction.

Exception Holds New Account Large Deposit Redeposited Check Repeated Overdrafts Reasonable Cause to Doubt Collectibility Emergency Conditions

Seventh-business Day Availability Checks that are subject to an exception hold as determined by the teller completing the transaction.

Ninth Business Day Availability Excess of first $5,000 of next-day checks (including traveler’s checks) deposited to a new account.

Nth-business Day Availability Non next-day checks deposited to a new account. [Customize title for correct number of days for your bank]

SMTWTFS SMTWTFS SMTWTFS

Applying Funds Availability Rules Your institution is open for all business functions on Saturday. Customer Jones deposits a $4,000 U.S. Treasury Check payable to him with a teller on Saturday. When must the funds be made available? (Examples of Availability Rules, accessed February 11, 2003.)

Applying the Rules Continued… Customer Jackson deposits a $400 non-next day check payable to him with a teller at 10:00 a.m. on Monday. When must the funds be made available? (Examples of Availability Rules, accessed February 11, 2003.)

Applying the Rules Continued… Customer Palmer deposits a $10,000 non next-day check payable to him with a teller at 10:00 a.m. on Monday. When must the funds be made available? (Examples of Availability Rules, accessed February 11, 2003.)

Applying the Rules Continued… Customer Washington deposits a $400 non next-day check payable to her at 4:05 p.m. on Monday. When must the funds be available? (Examples of Availability Rules, accessed February 11, 2003.)

Q & A Session Please feel free to ask any questions or state any comments regarding Regulation CC.