Expedited Funds Availability Act and Regulation CC Flashcards
T or F
The primary purpose of the Expedited Funds Availability Act (EFAA) and Regulation CC is to require depository financial institutions to speed up (expedite) the availability of funds to depositors from their deposited checks.
True
The Congressional rationale to enact the EFAA is that most checks get.
Paid
These are major requirements of
1. disclosing funds availability policies
2. adhering to funds availability hold periods
3. indorsing checks in designated areas in black ink
4. expediting the return of unpaid checks to the depositary financial institution.
Expedited Funds Availability Act and Regulation CC
T or F
When Bill deposits $1,000 share draft into his checking account at a nonproprietary ATM at the convience store, generally under Regulation CC the funds must be available on the 5th business day.
True
T or F
When one of the exception holds is placed on a deposit, the credit union’s hold notice must contain the current account balance with the held amount deducted.
False
Y or N
Must the notice ID the deposit date, amount held and reason for the hold?
Yes
T or F
One test for the “repeated overdrafts exception” is having a negative balance on six or more banking days in the last six months.
True
T or F
When a credit union invokes (uses) an exception hold on a deposit, the member must be notified of this hold.
True
T or F
When a credit union invokes the reasonable cause exception hold on a deposit, the notice to the member need only state the time period of the hold, and no additional information is necessary (like the specific reason for the hold.)
False
T or F
An “on-us” check must be given next-day availability unless it is deposited at a non-proprietary ATM at a nearby convenence store.
False
T or F
Generally, a credit union can place holds on local checks deposited into new accounts for a period of time up to the credit union’s discretion (i.e., generally Regulation CC would not apply to all local checks deposited for 30 days)
True
T or F
Like the UCC’s Articles 3 &4, the Expedited Funds Availability Act and Regulation CC help resolve the two major problems that occur with checks: nonpayment and wrongdoing.
False
T or F
Financial institutions are required by law to take checks for deposit that are drawn on other financial institutions.
False
T or F
Credit Unions are required to provide their “funds availability policy” (i.e., your Reg CC “disclosures”) prior to opening an account, and those disclosures must be/;
1.given in a clear and conspicuous manner
2. in writing
3. in a form the member can keep, and
4. must describe the credit union’s specific policy on the availability of all deposited funds.
True
T or F
Regulation CC requires credit unions to post their funds availability policy or provide a notice regarding their policy at a proprietary ATMs they own or operate. This notice may be printed on the receipt the member receives after the deposit.
False
