Reg CC

Question 1

For Reg CC, an account means:

Answer 1

a transaction account (it generally does not include time deposits or savings accounts).

Question 2

For Check 21 an account means:

Answer 2

any deposit account.

Question 3

For Reg CC, a business day means:

Answer 3

all calendar days except Saturdays, Sundays, and federal holidays.

Question 4

What items must have next day funds availability?

Answer 4

* cash

* electronic payments

* certain checks

Question 5

Items that would be subject to next day availability but are not deposited in person must be available for withdrawal:

Answer 5

on the second business day after the day the funds are deposited

Question 6

What items must be available the second business day?

Answer 6

* non-next day checks

* certain Treasury checks and money orders

* certified checks and government checks

Question 7

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:

Answer 7

* $400 (in addition to the $200 initial availability)

* 5pm

* the day the funds would be made available

Question 8

Banks may have a one day extension for any time period on deposits are:

Answer 8

* in Alaska, Hawaii, Puerto Rico, or the US Virgin Island

* checks from out of state banks

Question 9

What are the exception categories for funds availability?

Answer 9

* New Accounts

* Large Deposits

* Redeposited checks

* Repeated overdrafts

* Reasonable cause

* emergency conditions

Question 10

Notice of check holds to customers must be given:

Answer 10

when statutory exceptions are invoked

Question 11

Check hold notices must include:

Answer 11

* the item number

* date of deposit

* amount that is delayed

* reason exception was invoked

* the day funds will be available for withdrawal

Question 12

The bank must begin to accrue interest on deposits made to an interest bearing account on:

Answer 12

the day the bank receives credit for the funds

Question 13

Funds availability disclosures must contain a statement that the funds will be available for withdrawal on:

Answer 13

the _____ business day after the day of deposit.

Question 14

Funds availability disclosures must be given to the customer:

Answer 14

before opening an account.

Question 15

T or F

Banks must disclose to the customer the reason for applying an exception hold.

Answer 15

FALSE

Question 16

Reg CC requires that deposit slips contain a statement that funds:

Answer 16

may not be available for immediate withdrawal

Question 17

Where must banks post a funds availability policy and what must it include?

Answer 17

were consumer deposits are received and the time period of delays on funds availability

Question 18

If deposits are not removed more than two times a week from an ATM, the bank must disclose at the ATM:

Answer 18

the days on which the deposits will be considered received

Question 19

T or F

Banks are not required to provide a funds availability policy to non consumers upon request.

Answer 19

FALSE

The bank’s availability notice must be provided to any person upon request

Question 20

If the bank changes the availability policy, it must notify all holders of consumer accounts ___________________ be implementing the policy change unless:

Answer 20

* 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

Question 21

Funds are considered to be deposited when:

Answer 21

* 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

Question 22

T or F

Reg CC requires that banks establish procedures to ensure compliance and that employees receive training.

Answer 22

TRUE

Question 23

Reg CC establishes that damages be:

Answer 23

not less than $100 or more than $1000

Question 24

Reg CC class action damages can be no more than:

Answer 24

$500,000 or 1% of the bank’s net worth, whichever is less

Question 25

Evidence of Reg CC compliance must be kept for:

Answer 25

two years or upon disposition of an investigation, whichever is later

Question 26

Paying banks must return checks in an expeditious manner. What constitutes expeditious?

Answer 26

* 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

Question 27

Checks are considered expeditious if the bank send the returned check in a manner that:

Answer 27

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

Question 28

A paying bank returning a check must clearly indicate on the front of the check that:

Answer 28

it is a returned check and the reason for the return

Question 29

The depository bank may not charge a fee for:

Answer 29

accepting and paying checks returned to it

Question 30

If a paying bank is not going to pay a check of $2500 or more, it must notify the depository bank by:

Answer 30

4pm, local time, of the second business day after the banking day that the check was presented

Question 31

Depository banks must send notice of nonpayment to its customer by:

Answer 31

midnight of the banking day following the banking day it received the check

Question 32

Damages for breach of warranties will not exceed:

Answer 32

the consideration received by the paying or returning bank plus finance charges and expenses

Question 33

Substitute checks must bear the legend:

Answer 33

This is a legal copy of your check. You can use it the same way you would the original check.

Question 34

Reconverting banks must ensure that substitute checks bear all endorsements and identify:

Answer 34

the truncating and reconverting banks

Question 35

The bank must make any amount that it substitute check reaccredit to a consumer account available for withdrawal:

Answer 35

no later than the state of the business day after the banking day on which the bank provides the recredit

Question 36

The bank may delay the availability of a substitute check recredited amount until the earlier of what two dates:

Answer 36

* 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

Question 37

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:

Answer 37

the 5th calendar day after the day the notice was sent

Question 38

Banks must send a notice of substitute check recredit no later than:

Answer 38

the business day after the banking day on which the bank recredit the consumer’s account

Question 39

The claimant bank must submit its claim so that the indemnifying bank receives the claim by the end of:

Answer 39

the 120th calendar day after the date of the transaction that give rise to the claim