Regulation CC - After Fed Consolidation

Presented by:
John Burnett

When the Federal Reserve System announced its plan for consolidation of check processing regions in 2003, it's doubtful that anyone could have forecasted how far it would go or how quickly. The effort was initiated to adapt to two powerful forces for change -- the shift away from paper checks as the predominant payment method in the U.S. economy, and the passage of the Check Clearing for the 21st Century Act (Check 21 Act) in 2003.

Ironically, the Fed's decision to consolidate became a sort of "self-fulfilling prophecy," because it became a driving force behind the adoption of check-image exchange and presentment which in turn sped up the decline in paper check volume and accelerated the pace of consolidation.

The nonlocal check is now a thing of the past, and that means there are a lot of changes affecting disclosures and limits on case-by-case and exception holds. We will focus on what has changed, what is likely to change, and what remains unchanged in Regulation CC in this presentation.

During the webinar, we will discuss these aspects of Regulation CC, and more --

Which deposit customers and accounts are affected

The end of the nonlocal check

Understanding your bank's funds availability policy disclosures

• Changes that need to be made
• What your disclosures should say now
• When changes require notices

Business days and banking days and why the difference matters

Whether there's still a case for case-by-case holds

Knowing when exception holds are permitted

When "reasonable cause" holds can -- and can't -- be used

When exception holds don't make sense

Disclosing holds to depositors

Large item return notices

Notifying customers of returns

Substitute checks

• Substitute check disclosure rules
• Handling customers' substitute check claims

Remotely created checks

• Warranty provision
• Your customer's rights
• Making a warranty claim

Regulation CC is loaded with details that you have to understand to keep your institution out of trouble with your regulator and your depositors. This webinar will give you what you need to understand to stay in compliance with the complex rules of the regulation, or return to compliance now that check processing consolidation has been completed.


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CD-ROM includes:

• Complete presentation (including slides and audio)
• Written Materials
• Follow-up Q & A

You have the right under this license agreement for this CD-ROM to use this presentation on a single-workstation. Use on a network is in violation of the copyright agreements. CD may be used by multiple users at a given institution but may not be placed on a network or in any other multi-user environment.

About the Speaker:

John Burnett is a 1979 alumnus of the ABA National Compliance School, and served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA's Stonier Graduate School of Banking. He is also a graduate of the BAI's and the Massachusetts Banker Association's Schools of Banking.

He joined Cape Cod Bank and Trust Company in 1971 and assumed his role as Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, as well as Clerk of the bank's holding company. John joined Glia Group, Inc., and became a part of the BOL Team in June, 2004.

Mr. Burnett is a former member chair of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA's Truth in Savings Task Force, and has served on several ABA and Massachusetts Bankers seminar panels.