Accelerated Funds Availability Act (EFAA or EFAA) was enacted in 1987 by the United States Congress for the purpose of standardizing the hold period on deposits made for commercial banks and for regulating the use of deposit deposits by agencies. This is also referred to as CC Rule or Reg CC , after Federal Reserve regulations that implement the law. Laws are codified in Title 12, Chapter 41 of the US Code and Title 12, Section 229 of the Federal Regulatory Code [1] .
Video Expedited Funds Availability Act
Disclosure
The financial institution must disclose its ownership policy to all account holders, and make the policy available in written form on request by any customer. It should also be provided at the opening of all new accounts.
Additional disclosure is required on the deposit slip, on the automated teller machine, and when the policy is changed in any way.
Maps Expedited Funds Availability Act
Type hold
The CC Regulation sets out four types of freezing that the bank may place on a check check on its sole discretion. Each has its own legal and legal qualifications for the bank to place any type if its requirements are met, even though bank policy may instruct that the type of freeze placed is the most long-standing hold that can be applied legally.
On February 27, 2010, there was only one checking processing area for the entire United States. Therefore, all checks are now local.
Regarding insurance checks , if an insurance check is taken on a bank fund in the state it will be available on the fifth business day; if an insurance check is taken on bank funds outside the country it will be available on the 7th business day.
There are some exceptions to this guide that are important to note. If the account owner makes a deposit to an account that is not eligible for the suspension of an exception but also has another unqualified account, then NSF Hold Exception may be placed. In the same way, if the account owner makes a deposit into an account that has been open for less than 30 days but has another account that has been open for more than 30 days, the New Account Holders can not be legally placed.
There are certain items that provide less risk to financial institutions and are thus subject to accelerated availability under the provisions of CC Regulations. The following items must have the first $ 5000 available for Statutory, Large Deposit, and New Account Arrested on the first business day after the deposit:
- Check the cashier, check authorized, or check teller *;
- Postal money orders;
- US. Treasury checks;
- Checks drawn on the Federal Reserve Bank or Federal Home Loan Bank;
- Any checks issued by other states, municipalities, counties, or other municipalities;
- Check anything taken from another account at the storage institution.
For each of these items, items must be presented to be deposited into the payee account in order to receive an accelerated funding availability; when one of these checks is presented to be deposited into a third party account, it loses preferential treatment. In addition, banks may require the use of deposit slips or special envelopes for the availability of checks, official checks, teller checks, or state & amp; examination of local government; if he does, he should notify the customer and tell them how to get a special slip or envelope.
* CC rules define a "cashier check" as a check issued by a bank, withdrawn at the same bank, is a direct obligation of the bank, and signed by one or more officers of the bank. Although the term "check teller" is generally used only by federal credit unions, under the CC Regulation each check "withdrawn by the bank, and withdrawn at another bank or paid through or in the bank" is "teller check" if issued "for remittance purposes". "Official Checks" or "Bank Checks" may not qualify as "cashier checks" under CC Rules, but they usually qualify for the availability of the next day as a "teller check".
Interest Payment
According to the rules, the flowering account will receive income from the funds from when they are collected by the depository agency, regardless of the length of the hold.
Enforcement
Under the law, enforcement is divided by agency types, each for a mandated supervisory authority of each type:
- For national banks, and federal branches and foreign bank institutions, such actions are enforced by the Office of Currency Finance Supervisors;
- For members of the Federal Reserve System that are not national banks, and for offices, branches and institutions of foreign banks located in the United States (which are not federal and foreign bank branches), the provisions are enforced by the Federal Reserve Board of Governors;
- In the case of a bank insured by the Federal Deposit Insurance Corporation that is not a member of the Federal Reserve System, and insuring the state branch of a foreign bank, enforcement falls to the Federal Bureau of Deposit Insurance Corporation (FDIC);
- The Director of the Seconded Goods Supervisory Office is responsible for enforcing the provisions of the law in the case of savings associations whose deposits are insured by the FDIC;
- The federated federated credit union or credit union insured by the Union National Union Credit Sharing Fund is subject to enforcement of action by the National Credit Union Administration Board.
The rewards for damages are limited under the rules, including no more than $ 1000 in addition to actual damages to individual action, and no more than less than $ 500,000 or 1% of the net worth of the bank, in addition to actual damages, for action classes.
Related Act
On June 9, 2014, the United States House of Representatives authorized HR 1679 To amend the Accelerated Funds Availability Act to clarify the adoption of the Act to American Samoa and Northern Mariana Islands. The billing, if it is to become law, will extend "by two business days, to American Samoa, any period of time prescribed for large or redeposited checks, repeated attempts, reasonable grounds, or other emergency exemptions for terms of availability a 30-day deposit for deposits in institutional deposit accounts by new depositors. "This will also apply" this two-day extension for any deposit in an account at a storage institution located in American Samoa with a check drawn at a storage agency originating not located in the country the same as the receiving depository institution. "
See also
- Check out 21 Acts
Note
- ^ 12 USC 40 can be found here at the Legal Information Institute website at Cornell Law School. The 12 CFR 229 text can be viewed here, via GPO.
References
Source of the article : Wikipedia
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