Park Avenue Bank's Funds Availability Policy (Regulation CC)
OVERVIEW
Regulation CC implements the Expedited Funds Availability Act (EFAA). It affects transaction and similar accounts that facilitate payments or transfers to third persons. This means that transaction accounts such as negotiable order of withdrawal (NOW) accounts and business checking accounts are covered under the regulation, and the bank must follow the specified funds availability schedules, disclosure requirements, return rules, and other provisions. Accounts such as regular savings accounts, money market deposit accounts (MMDAs), and time deposits are not covered under the act.
On July 27, 2004, the Federal Reserve published final amendments to Regulation CC that add a new Subpart D, with commentary, to implement the Check Clearing for the 21st Century Act (Check 21 Act) (PL 108-100). These amendments set forth the requirements of the act that apply to banks, a model consumer awareness disclosure and other model notices, and endorsement and identification requirements for substitute checks.
POLICY
The purpose of this policy is to describe The Park Avenue Bank's (the Bank) check hold policy for transaction accounts. The Bank's objective is to make funds available as expeditiously as good business practices mandate.
The length of delay is counted in business days from the business day of deposit. Every day is a business day except Saturdays, Sundays, and federal holidays. If a deposit is made at a staffed teller station during any working day before 3:00 on a day the bank is open, the bank will consider that day to be the day of deposit. If a deposit is made after the 3:00 closing or on a day the bank is closed, the bank will consider the next business day the bank is open to be the day of deposit.
Same-Day Availability
Funds from the following deposits are available on the business day of deposit:
- All electronic payments, such as direct deposits and wire transfers
- Checks drawn on the bank, if funds are available in the account
- Cash deposits
- U.S. Treasury checks made payable to the account holder
Next-Day Availability
Funds from government checks (local and state) are available the next day as long as the check is made payable to the account holder, and deposited on a special deposit ticket.
If the deposit is made in person to one of the bank's tellers, funds from the following items are also available on the first business day after the day of deposit provided they are payable to you and deposited on a special deposit ticket:
- Cashier's checks, certified checks, and teller checks that are made payable to the account holder
- Federal Reserve Bank checks, Federal Home Loan Bank checks, and U.S. postal money orders, if these items are payable to the depositor
If the deposit is not made in person to one of the bank's tellers (for example, if the deposit is made through the mail or at a night depository), funds from these deposits will follow the normal availability schedule outlined below.
Other Checks
The delay for other check deposits depends on whether the check is local or nonlocal. Local checks for The Park Avenue Bank are those with 0210, 0212, 0214, 0215, 0216, 0219, 0260, 0280, 2212, 2214, 2215, 2216, 2219 or 2260 as the first four digits. Some checks may be marked "payable through." The Bank will use the four-digit number or the first four digits of the nine-digit number near the words "payable through" on the check rather than the routing number to determine if it is a local check. All other checks are nonlocal checks.
The Bank will make the first $100 from a deposit of local and nonlocal checks available on the first business day after the day of the deposit. The remaining funds from a local check will be available on the second business day after the day of the deposit. The remaining funds from a nonlocal check will be available on the fifth business day after the day of the deposit.
Longer Delays
Availability may be delayed for longer periods under the following circumstances:
- The bank believes a check will not be paid
- Deposited checks total more than $5,000 on one day
- Returned unpaid checks are redeposited
- An account has been overdrawn six times or more in the last six months
- Emergencies, such as failure of communications or computer equipment
The Bank will notify affected customers if the bank delays their ability to withdraw funds for any of these reasons. The Bank will tell affected customers when the funds will be available, which generally will be no later than the eleventh business day after the day of deposit. Affected customers will be required to sign the notice of hold form.
New Account Rules
Special rules apply during the first 30 days after an account is opened. An account is not new if the customer has had another transaction account at the bank for more than 30 days. If the customer has had authorization only to sign on a corporate account and then opens a new consumer account, it is considered a new account for purposes of Regulation CC. Funds from electronic direct deposits and cash will be available on the day of deposit.
Funds from the first $5,000 of a day's total deposit of cashier's, certified, teller's, traveler's, and federal, state, and local government checks will be available on the first business day after the day of deposit if checks are payable to the depositor. The excess over $5,000 will be available on the ninth business day after the day of deposit.
Funds from wire transfers are available same day.
Holds on Other Funds
If the bank cashes a check or accepts for deposit a check drawn on another depository, the bank may make funds immediately available but delay the availability to withdraw a corresponding amount of funds on deposit in any account the depositor has with the bank. Held funds will be available according to the bank's check hold policy stated elsewhere in this Regulation CC policy.
When the Bank Will Pay Interest on Deposits
Deposits are considered deposited on the same day when received at a teller station or proprietary ATM. They are considered deposited when they are removed from night depositories, lock boxes, and nonproprietary ATMs. When deposits are sent through the mail, they are considered deposited when received by the bank.
