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.
What type of hold is not governed by Reg CC?
Answer: Portions of Reg CC do not apply to money market and savings accounts.
What Does CC Mean banking?
A Cash Credit (CC) is a short-term source of financing for a company. In other words, a cash credit is a short-term loan extended to a company by a bank. It enables a company to withdraw money from a bank account without keeping a credit balance. The account is limited to only borrowing up to the borrowing limit.
Does Reg CC only apply to consumer accounts?
Regulation CC requires institutions to send change notices to holders of consumer accounts. So even though Reg. CC applies generally to commercial accounts, the change notice requirements only apply to consumer accounts.
What are the two types of Reg CC holds?
Regulation CC (12 CFR 229) implements two laws—the Expedited Funds Availability Act (EFA Act), which was enacted in August 1987 and became effective in September 1988, and the Check Clearing for the 21st Century Act (Check 21), which was enacted in October 2003 and became effective on October 28, 2004.
Which type of hold does Reg CC require retention of two years?
(1) A bank shall retain evidence of compliance with the requirements imposed by this subpart for not less than two years. Records may be stored by use of microfiche, microfilm, magnetic tape, or other methods capable of accurately retaining and reproducing information.
What type of accounts does Regulation CC apply to?
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.
Can you place a Reg CC hold on a money order?
If the purchaser of the money order is the drawer, then it’s a normal check and you can follow the normal Regulation CC holds. If the drawer and the drawee are the same bank or branches of the same bank, then the money order is treated as a cashier’s or certified check.