Whether driven by inventive fraud schemes or the Federal Reserve’s reopening of a 2011 proposal, we have seen an uptick in questions from credit unions related to Regulation CC’s funds availability requirements over the past couple of weeks. To provide some background, the Federal Reserve’s Reg CC establishes the availability guidelines for funds deposited into a transaction account. Credit unions must provide a specific funds availability disclosure that complies with Reg CC and generally describes the credit union’s policy as to when funds deposited into an account are available for withdrawal. See, 12 C.F.R. § 229.16(a). For a broader analysis, the Federal Reserve’s Reg CC Compliance Guide provides a general overview of the requirements and has been helpful to many credit unions. On this rainy DC Monday morning, I bring to you a roundup of some frequently asked questions concerning funds availability:
Question 1: Our credit union is making changes to our teller and ATM receipts. Does Reg CC require us to provide any specific notices on deposit receipts?
Answer: No. Reg CC does not specifically require receipts, but section 229.18(a) does require credit unions to include a specific notice on all preprinted deposit slips explaining that deposits may not be available for immediate withdrawal. Reg CC also requires credit unions to provide written notice to a depositor where the credit union invokes an exception hold or a case-by-case hold. This notice is generally required within one business day of the deposit and may be provided to the member on a receipt.
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