Reg CC Flashcards
For Reg CC, an account means:
a transaction account (it generally does not include time deposits or savings accounts).
For Check 21 an account means:
any deposit account.
For Reg CC, a business day means:
all calendar days except Saturdays, Sundays, and federal holidays.
What items must have next day funds availability?
* cash
* electronic payments
* certain checks
Items that would be subject to next day availability but are not deposited in person must be available for withdrawal:
on the second business day after the day the funds are deposited
What items must be available the second business day?
* non-next day checks
* certain Treasury checks and money orders
* certified checks and government checks
Banks may extend the availability time period for cash or similar withdrawals on deposits of checks by one business day provided that up to ______ of the deposited funds is made available by _______ on:
* $400 (in addition to the $200 initial availability)
* 5pm
* the day the funds would be made available
Banks may have a one day extension for any time period on deposits are:
* in Alaska, Hawaii, Puerto Rico, or the US Virgin Island
* checks from out of state banks
What are the exception categories for funds availability?
* New Accounts
* Large Deposits
* Redeposited checks
* Repeated overdrafts
* Reasonable cause
* emergency conditions
Notice of check holds to customers must be given:
when statutory exceptions are invoked
Check hold notices must include:
* the item number
* date of deposit
* amount that is delayed
* reason exception was invoked
* the day funds will be available for withdrawal
The bank must begin to accrue interest on deposits made to an interest bearing account on:
the day the bank receives credit for the funds
Funds availability disclosures must contain a statement that the funds will be available for withdrawal on:
the _____ business day after the day of deposit.
Funds availability disclosures must be given to the customer:
before opening an account.
T or F
Banks must disclose to the customer the reason for applying an exception hold.
FALSE
Reg CC requires that deposit slips contain a statement that funds:
may not be available for immediate withdrawal
Where must banks post a funds availability policy and what must it include?
were consumer deposits are received and the time period of delays on funds availability
If deposits are not removed more than two times a week from an ATM, the bank must disclose at the ATM:
the days on which the deposits will be considered received
T or F
Banks are not required to provide a funds availability policy to non consumers upon request.
FALSE
The bank’s availability notice must be provided to any person upon request
If the bank changes the availability policy, it must notify all holders of consumer accounts ___________________ be implementing the policy change unless:
* at least 30 days before
* the change expedites the availability of funds, in which case notice may be given within 30 days after the change
Funds are considered to be deposited when:
* received at a staffed facility or ATM
* received by the bank if mailed
* removed from the night facility or lockbox
* when removed from an ATM not on or within 50 feet of the premises of the bank and the funds are not removed more than two times a week
* on a banking day before any established cutoff
T or F
Reg CC requires that banks establish procedures to ensure compliance and that employees receive training.
TRUE
Reg CC establishes that damages be:
not less than $100 or more than $1000
Reg CC class action damages can be no more than:
$500,000 or 1% of the bank’s net worth, whichever is less
Evidence of Reg CC compliance must be kept for:
two years or upon disposition of an investigation, whichever is later
Paying banks must return checks in an expeditious manner. What constitutes expeditious?
* not later than 4pm on the second day after the day the check was presented in the same check processing region OR
* no later than 4pm on the fourth day for out of region
Checks are considered expeditious if the bank send the returned check in a manner that:
a similarly situated bank would normally handle a check of the same amount, drawn on the depositary bank, and deposited for forward collection by noon on the banking day after the check
A paying bank returning a check must clearly indicate on the front of the check that:
it is a returned check and the reason for the return
The depository bank may not charge a fee for:
accepting and paying checks returned to it
If a paying bank is not going to pay a check of $2500 or more, it must notify the depository bank by:
4pm, local time, of the second business day after the banking day that the check was presented
Depository banks must send notice of nonpayment to its customer by:
midnight of the banking day following the banking day it received the check
Damages for breach of warranties will not exceed:
the consideration received by the paying or returning bank plus finance charges and expenses
Substitute checks must bear the legend:
This is a legal copy of your check. You can use it the same way you would the original check.
Reconverting banks must ensure that substitute checks bear all endorsements and identify:
the truncating and reconverting banks
The bank must make any amount that it substitute check reaccredit to a consumer account available for withdrawal:
no later than the state of the business day after the banking day on which the bank provides the recredit
The bank may delay the availability of a substitute check recredited amount until the earlier of what two dates:
* the start of the business day after the banking day on which the bank determines the consumer’s claim is valid OR
* the 45th day after the banking day on which the bank received the oral or written claim for new or overdrawn accounts
If a bank delays availability of substitute check recrediting it may not impose an overdraft fee with respect to drafts drawn on recredited funds until:
the 5th calendar day after the day the notice was sent
Banks must send a notice of substitute check recredit no later than:
the business day after the banking day on which the bank recredit the consumer’s account
The claimant bank must submit its claim so that the indemnifying bank receives the claim by the end of:
the 120th calendar day after the date of the transaction that give rise to the claim
