What is Regulation CC in banking?

What is Regulation CC in banking?

Regulation CC requires financial institutions to provide account holders with disclosures that indicate when deposited funds will be available for withdrawal. Regulation CC addressed long hold times that customers were facing after they had deposited checks to banks, including implementing maximum hold times.

How long is a Reg CC hold?

Regulation CC provides that banks may extend the availability schedule by a reasonable period of time. Here are some examples: An extension of up to five business days for most checks. An extension of one business day for checks that are drawn on, and deposited into, the same bank.

Does Regulation CC apply to credit unions?

Regulation CC applies to all credit unions, but it only applies to transaction accounts. Non- transaction accounts, such as most credit union regular share accounts or membership accounts, are not governed by Reg CC. So Regulation CC does not apply to savings accounts; only to checking or share draft accounts.

Where is Reg CC?

It is also referred to as Regulation CC or Reg CC, after the Federal Reserve regulation that implements the act. The law is codified in Title 12, Chapter 41 of the US Code and Title 12, Part 229 of the Code of Federal Regulations.

Can you put a Reg CC hold on a savings account?

The definition applies to accounts with general third-party payment powers but does not cover time deposits or savings deposits, including money market deposit accounts, even though they may have limited third-party payment powers.

Which endorsement is the safest form?

The most secure way to endorse a check is to:

  • Write: “For Deposit Only to Account Number XXXXXXXXXX”
  • Sign your name below that, but still within the endorsement area of the check.

What are the new Reg CC changes?

The final rule (Off-site) includes a number of changes, including the following that may have the greatest impact on your institution: 229.10 (c) Minimum amount of deposited funds currently set at $200 will move to $225. 229.12 (d) Permissive Adjustment to funds availability will change from $400 to $450.

What are the requirements of Regulation CC?

This guide highlights the following requirements of Regulation CC: Making funds available for withdrawal within the times prescribed by the regulation Providing funds availability disclosures and notices to customers

What is a reasonable period of time under Regulation CC?

For certain types of deposits, Regulation CC permits financial institutions to delay, for a “reasonable period of time,” the availability of funds. A “reasonable” time period is generally defined as one additional business day (making a total of two business days) for on-us checks, and five additional business days (total of seven)…

What is a 12 CFR Part 229 commentary?

The Board interpretations, which are labeled “Commentary” and follow each section of Regulation CC ( 12 CFR Part 229 ), provide background material to explain the Board’s intent in adopting a particular part of the regulation; the Commentary also provides examples to aid in understanding how a particular requirement is to work.

Are the models C-22 and C-25 compliant with Regulation CC?

Although use of these models is not required, banks using them properly (with the exception of models C-22 through C-25) to make disclosures required by Regulation CC are deemed to be in compliance. C-2 Next-day availability and § 229.13 exceptions