EXPEDITED FUNDS AVAILABILITY AND REG CC Flashcards
The primary purpose of the Expedited Funds Availability Act and Reg CC is to require depositary financial institutions to speed up the availability of funds to depositors from their deposited checks. True or False?
The Congressional rationale to enact EFAA is that most checks get….
The major requirements of the EFAA and Reg CC for your CU are:
-disclosing funds availability polices
-adhering to funds availability hold periods
-indorsing checks in designated areas in black ink
-expediting the return of unpaid checks to the depositary financial institution
-all of the above
When Bill deposits a $1000 share draft into his checking account at a nonproprietary ATM at the convenience store, generally under Reg CC the funds must be made available on the fifth business day. True or False?
The Congressional rationale to provide exceptions to the EFAA’s funds availability hold periods is that not all checks get……
When one of the exception holds is placed on a deposit, the CU’s hold notice must contain the current account balance with the held amount deducted. True or False? Must the notice ID the deposit date, amount held & reason for the Hold?
One test for the “repeated overdrafts exception” is having a negative balance on 6 or more banking days in the last 6 months. True or False?
When a CU invokes (uses) an exception hold on a deposit, the member must be notifed of this hold. True or False?
When a CU 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.) True or False?
An “on-us” check msut be given next-day availability unless it is deposited at a non proprietary ATM at a nearby convenience store. True or False?
Generally a CU can place holds on local checks deposited into new accounts for a period of time up to the CU’s discretion (i.e., generally reg CC would not apply to all local checks deposited for 30 days). True or False?
Like the UCC’s Articles 3 & 4, the EFAA and Reg CC help resolve the two major problems that occur with checks: nonpayment and wrongdoing. True or False?
Financial Institutions are required by law to take checks for deposit that are drawn on other financial institutions. True of False?
CUs are required to provide their EFAA prior to opening an acct and those disclosures must be 1. given in clear and conspicuous manner, 2. in wirting, 3. in a form that the member can keep, and 4. must describe the CU’s specific policy on the availability of all deposited funds. True or False?
Reg cc requires CU to post their funds availability policy or provide a notice regarding their policy at proprietary ATMs they own or operate. This notice may be printed on the receipt the member receives after the deposit. True or False?
