Subpart B Flashcards
What is the general rule for next day availability of funds deposited at a depositary bank?
Funds deposited shall be available for withdrawal not later than the business day after the banking day of deposit.
Applies to cash deposits, electronic payments, and certain check deposits.
What types of deposits are included in the next day availability provisions?
- Cash deposits made in person
- Electronic payments
- Certain check deposits including:
- Check drawn on the Treasury of the United States
- U.S. Postal Service money order
- Check drawn on a Federal Reserve bank or Federal Home Loan bank
- Check drawn by a state or a unit of general local government
- Cashier’s, certified, or teller’s check
Detailed dollar amounts can be found in the Federal Register.
What is the requirement for all other checks deposited at the same depositary bank?
Must make available the lesser of:
* $200
* The amount of the check
Specific dollar amounts are subject to adjustments by Subpart B.
True or False: All depository institutions are impacted by Subpart B’s adjustments to funds availability.
True
Adjustments affect all asset sizes of depository institutions.
How much notice must be given for future updates to funds availability policies?
At least one (1) year before the effective date.
This applies to changes in related disclosures.
How much must be made available if all other checks are deposited at same depository bank?
$225.00
What is the aggregate amount deposited on one banking day not subject to next-day availability?
All accounts by check
What is the maximum availability for funds after deposits made in person?
No later than second business day
What is the maximum availability for funds after deposits made at nonproprietary ATMs?
No later than fifth business day
What does the mandated extension of the EFA Act include?
Reg CC funds availability, payment of interest, and disclosure requirements
Which territories are included in the definitions of ‘state’ and ‘United States’ under Reg CC?
American Samoa, Northern Mariana Islands, Guam
What must disclosures regarding availability be like?
Clear and conspicuous in writing
Where must disclosures regarding availability be posted?
Locations where employees accept consumer deposits, banks, ATMs, and on preprinted deposit slips
What is required if a depository institution changes its funds-availability policy?
Send written notice to consumers at least 30 days before implementation
When should notice be sent if the change expedites the availability of funds?
No later than 30 days after implementation
What triggers the notice requirement for changes to dollar amounts?
Changes to dollar amounts
How may required notice updates be provided?
Electronically or with monthly account statements
Fill in the blank: Depository institutions are required to send written notice to consumer account holders at least ______ days before implementing changes.
30
True or False: The regulation requires disclosures to contain unrelated information.
False
What is the requirement for the form of disclosures under Reg CC?
Shall be clear and conspicuous in writing and must be in a form that the customer may keep
This includes disclosures not posted at locations where employees accept consumer deposits and ATMs.
What is required regarding the grouping of disclosures?
Disclosures must be grouped together and not contain any information not related to disclosures
This ensures clarity and compliance with the regulation.
How much notice must depository institutions provide before implementing changes to their funds-availability policy?
At least 30 days before implementing changes to their funds-availability policy (Reg CC §229.18(e))
This applies to changes that affect consumer account holders.
When should notice be sent if a change expedites the availability of funds?
No later than 30 days after implementation
This ensures customers are informed promptly about favorable changes.
What triggers the notice requirement regarding changes to dollar amounts?
Changes to dollar amounts will trigger this notice requirement
Institutions may provide required notice updates electronically or send them with monthly account statements.
What is an exception to next-day or two-day availability for new accounts?
Deposits to new accounts during the first 30 days after account established
This allows institutions to manage risk associated with new accounts.
What defines a large deposit exception under Reg CC?
May apply to aggregate deposits to all customer accounts
This is to prevent abuse of the funds availability policy.
What are the exceptions for certain redeposited checks?
Certain redeposited checks may not be subject to next-day or two-day availability
This includes checks that have been previously returned.
What constitutes an account with repeated overdrafts?
Repeatedly overdrawn for a period of six months
This includes specific conditions regarding negative balances.
What are the conditions for considering an account as repeatedly overdrawn?
- Six or more banking days within preceding six months, account balance is negative
- Two or more banking days within preceding six months, account balance is negative
These conditions help identify accounts that may pose higher risk.
What is the minimum amount for a negative balance to be considered significant?
$5,525 or more
Effective July 1, 2025, the amount will increase to $6,725.
What constitutes reasonable cause to doubt collectability?
Facts that would cause a reasonable person to believe the check is uncollectible
This is a critical factor in banking decisions regarding checks.
What are emergency conditions that may affect banking operations?
- Interruption of communications
- Interruption of computers
- Suspension of payments by another bank
- War or other emergency conditions beyond bank’s control
These conditions can lead to service disruptions.
Are deposits made by customers via RDC governed by any agreements?
Yes, they are governed under agreements with the depositing institution
This includes customer, account, and/or RDC agreements.
True or False: Checks or other charges can be paid even if the account balance is negative.
True
This may happen under certain conditions.
