Reg CC Expedited Funds Availability Flashcards
For which of the following deposits is a bank NOT required to give next-day availability?
a. A deposit of seven $100 bills
b. A deposit of a Social Security check by mail
c. A deposit of a Social Security payment
d. The deposit of a cashier’s check at an ATM
d. The deposit of a cashier’s check at an ATM
For which of the following deposits is a bank required to give next-day availability assume that all checks are deposited into the account of the payee)?
a. A deposit of pesos
b. A deposit of a Social Security check by mail
C. A deposit of a U.S. Postal Money Order by mail
d. The deposit of a cashier’s check through the night deposit box
b. A deposit of a Social Security check by mail
The following deposits were made on Monday at First National Bank: Martha Smith, a new customer, deposited $150 in checks into her checking account, which she had opened the previous week Jerry Williams, an established customer, deposited a $7,000 check from his father Amanda Thomas, also an established customer, deposited her $600 IRS refund into her account What funds must be made available to these depositors on Tuesday?
a. $225 for each
b. $225 for Martha and Jerry; $600 for Amanda
c. $225 for Jerry; $600 for Amanda
d. $225 for Martha; $600 for Amanda
c. $225 for Jerry; $600 for Amanda
Which of the following accounts is considered to be a new account for delayed funds availability purposes?
a. A new account opened by an established customer who has had several transaction accounts with the bank for a long time
b. A new account opened by a customer who previously had an account but closed it 15 days before opening the new one
c. A new account opened by a customer who has had a regular savings account at the bank for five years
d. A new account opened by a customer who is a joint account holder on another checking account at the bank but who has no other individual account
c. A new account opened by a customer who has had a regular savings account at the bank for five years
A customer deposits a $7,000 local check and a $12,000 U.S. Treasury check in the bank on Monday. The bank’s policy is that it generally makes funds from checks available on the next business day, although it does place exception holds. When does the bank have to make these funds available?
a. $5,525 is available on Tuesday; the rest is available within a reasonable time period
b. $500 is available on Tuesday; $4,500 is available on Wednesday; and the remaining is available within a reasonable time period
c. $5,200 is available on Tuesday; $4,800 is available on Wednesday; and the remaining is available within a reasonable time period
d. $12,200 is available on Tuesday and $6,800 is available on Wednesday
a. $5,525 is available on Tuesday; the rest is available within a reasonable time period
First National has an account for Mary Jones, who has had several overdrafts in her account over the past few months. On February 15, she overdrew her account and had a negative balance, which lasted for 10 days. As of March 14, the number of negative days in the statement cycle was three; and as of April 14, the number of days was six. The last overdraft occurred on May 14, and the account was overdrawn for three days. Mary has not been overdrawn since May. First National has extended the holds placed on all deposits to her account. How long can the bank continue to subject her account to extended hold periods?
a. Until May 14
b. Until October 14
c. Until July 14
d. Until April 14 of the next year
b. Until October 14
irst National’s funds availability policy states that funds from checks are generally available for withdrawal on the next business day following the day of deposit. The policy also states that longer holds may be required on a case-by-case basis and advises customers to ask if they need to be sure of the availability of a specific deposit. Henry Cranston deposited a check into his account on Monday. Henry needed to use the funds on Tuesday but he did not ask about the availability at the time of the deposit. A bank teller accepted the deposit and gave Henry a receipt. After Henry left the bank, the teller’s supervisor noticed the check and decided that a longer hold needed to be placed and the funds would not be available until Wednesday. Which of the following actions must the bank perform?
a. The bank must make the funds available on Tuesday, because Henry was not notified at the time of the deposit.
b. The bank may hold the funds for a longer time period but must send Henry a hold notice.
c. The bank may hold the funds for a longer time period and need not notify Henry because he did not ask about the availability of the deposit.
d. The bank may hold the funds for a longer time period and may, at its option, send Henry a notice of the delay.
b. The bank may hold the funds for a longer time period but must send Henry a hold notice.
A $7,000 check is presented to First National Bank, as the paying bank on Monday. First National is going to return the check to the depositary bank. Generally, First National mails return checks to the Federal Reserve Bank and mails its forward collection checks as well to avoid the costs of a courier. Other banks in the community send both return and forward collection checks to the Federal Reserve Bank by courier if the checks are over $5,525. Can First National follow its usual procedure in this case?
a. Yes. Provided the bank is consistent in its method of return, it does not have to use the most expeditious method.
b. Yes. Provided the bank uses the mail for forward collection, it can use the
mail for returns.
c. No. The bank must use the method used by banks in similar circumstances.
d. No. The bank is required to use an expeditious method of return such that the depositary bank normally would receive the returned check by 2:00 P.M. (local time of the depositary bank).
d. No. The bank is required to use an expeditious method of return such that the depositary bank normally would receive the returned check by 2:00 P.M. (local time of the depositary bank).
A senior officer of a bank is considering breaking with tradition and opening the main office for general banking business on Saturdays. Before making the final decision, he requests your input. Which of the following describes the Regulation CC implications of his proposal?
a. Saturday is not a “business day” under the regulation, and the funds availability schedule will not be affected.
b. Funds availability disclosures and lobby notices will have to be revised for all branches.
c. An extra day of interest on Saturday deposits will have to be paid.
d. Being open on Saturday will shorten hold periods and increase exposure to operating losses.
a. Saturday is not a “business day” under the regulation, and the funds availability schedule will not be affected.
On which of the following deposits is a bank NOT required to give next-day availability?
a. A cashier’s check deposited at a proprietary ATM
b. A Social Security check received through the mail to be deposited in the payee’s account
c. U.S. Postal Service money orders deposited in person to the payee’s account
d. Cash, where the deposit was made in person to a teller at the depository bank
a. A cashier’s check deposited at a proprietary ATM
What is the required timing for giving notice to customers regarding a change to a bank’s Regulation CC funds availability policy that improves or expedites availability?
a. At least 15 days prior to implementation
b. At least 30 days prior to implementation
c. No later than 15 days after implementation
d. No later than 30 days after implementation
d. No later than 30 days after implementation
The manager of teller operations contacts the compliance manager about a high level of exceptions noted on hold notices during recent compliance monitoring, Which of the following recommendations is MOST appropriate for the compliance manager to make?
a. Require an officer’s review and signature on all hold notices
b. Support the purchase of a new teller computer system to automate hold notices
c. Increase the frequency and volume of compliance monitoring to better determine the weak areas
d. Arrange remedial training on hold notice requirements for tellers where the exceptions were noted
d. Arrange remedial training on hold notice requirements for tellers where the exceptions were noted
