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#677558 - 02/01/07 04:29 PM Reg. D, MMDA and Transaction Counting.
complianceman Offline
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complianceman
Joined: Mar 2005
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New Albany, IN
I have not messed with Reg D and transaction counting for a year or so. If a customer has a MMDA, can they conduct as many face-to-face teller transaction as they want and those transaction not count against their transaction counter?

I am reading Reg. D to say yes based on the following statement:

Such an account is not a transaction account by virtue of an arrangement that permits transfers for the purpose of repaying loans and associated expenses at the same depository institution (as originator or servicer) or that permits transfers of funds from this account to another account of the same depositor at the same institution or permits withdrawals (payments directly to the depositor) from the account when such transfers or withdrawals are made by mail, messenger, automated teller machine, or in person or when such withdrawals are made by telephone (via check mailed to the depositor) regardless of the number of such transfers or withdrawals.
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#677716 - 02/01/07 06:06 PM Re: Reg. D, MMDA and Transaction Counting. complianceman
rlcarey Online
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Galveston, TX
You are correct - face to face transactions are unlimited.
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#694727 - 02/28/07 07:46 PM Re: Reg. D, MMDA and Transaction Counting. rlcarey
SamIAM Offline
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What if a customer makes a check payable to himself and cashes the check at another bank. Since this check was not made payable to a third party, would it be exempt?

Thanks.

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#694903 - 03/01/07 01:34 AM Re: Reg. D, MMDA and Transaction Counting. SamIAM
rlcarey Online
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Actually it is payable to a third party - the bank that cashed it.
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#694988 - 03/01/07 02:48 PM Re: Reg. D, MMDA and Transaction Counting. rlcarey
Deena Offline
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Deena
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PA
Randy, can you please explain your answer? How is the check payable to the bank? I have always thought that the check should not be counted in this case.
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#695031 - 03/01/07 03:40 PM Re: Reg. D, MMDA and Transaction Counting. Deena
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The check should be counted. In order to be exempt they must be cashed by the depositor at the depositor's institution.

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#695101 - 03/01/07 04:52 PM Re: Reg. D, MMDA and Transaction Counting.
Deena Offline
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PA
Does it say that in the Reg somewhere?
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#695453 - 03/02/07 02:05 AM Re: Reg. D, MMDA and Transaction Counting. Deena
rlcarey Online
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I would equate it to this staff opinion:

2-345.12
Regulation D

TRANSACTION ACCOUNTS--Savings Account Allowing Transfers to Agent Institutions

A state-chartered, state-insured savings and loan association proposes a savings account in which the depositor may make withdrawals by personal transactions at the office of the association or by specific written request. The depositor may also appoint an agent, or grant a power of attorney to another person or institution authorizing the agent to make withdrawals on the depositor's behalf. Depositors would maintain accounts at other depository institutions and name these institutions as agents with respect to the accounts maintained at the institution proposing the plan, thus allowing the agent to make transfers between the accounts at the various institutions. These arrangements would be considered a preauthorized transfer within the meaning of section 204.2(e)(6) of Regulation D because the agent institution in the proposal would represent the third party to whom payment from the depositor's account is made. STAFF OP. of Dec. 23, 1981.
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#695562 - 03/02/07 02:57 PM Re: Reg. D, MMDA and Transaction Counting. rlcarey
Deena Offline
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PA
But Randy, in the staff opinion the customer had multiple accounts at different institutions (if I'm reading it right) and was trying to transfer money from one bank to another. In the case of CASHING a check made payable to himself, there is no third party. I still don't see how it would fall into the category of a preauthorized transfer or a third party check.
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#695992 - 03/02/07 09:41 PM Re: Reg. D, MMDA and Transaction Counting. Deena
TXBSA Offline
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One of the purposes of this reg is to try and keep the funds within the institution (in-person transactions and loan payments at the same bank). If a customer writes a check to himself and does the business at another institution, that institution becomes a 3rd party involved in the processing of the check. (No longer just your bank and the customer.) That shows that the check needs to be counted against the transaction limits.

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#696040 - 03/02/07 10:45 PM Re: Reg. D, MMDA and Transaction Counting. TXBSA
Bagweaver Offline
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SW GA
What about internet banking transfers from a MMDA with the bank to another deposit account with the bank? Are these counted?

Thanks

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#696126 - 03/04/07 04:31 PM Re: Reg. D, MMDA and Transaction Counting. Bagweaver
rlcarey Online
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Yes - they are counted within the six transfer limitation.
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#696569 - 03/05/07 07:07 PM Re: Reg. D, MMDA and Transaction Counting. rlcarey
kokoriko Offline
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CA
How about checks converted to ACH debits? Since they come in as ACH, would they be counted as one of the 6 transactions, not the 3? Thank you

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#696577 - 03/05/07 07:10 PM Re: Reg. D, MMDA and Transaction Counting. kokoriko
rlcarey Online
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Galveston, TX
The FED has not addressed this situation, but since they started as paper - I would treat them as such.
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#696588 - 03/05/07 07:17 PM Re: Reg. D, MMDA and Transaction Counting. kokoriko
John Burnett Offline
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John Burnett
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Cape Cod
It would make sense for POP, ARC, RCK, and BOC entries (all forms of check conversions) to be counted as checks, and I have spoken with one attorney on the FRB Staff that agrees. However, your operating system may not be able to distinguish these ACH transactions from others.

And I have yet to see anything official from the Fed that adopts that stance.
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#707836 - 03/28/07 01:20 PM Re: Reg. D, MMDA and Transaction Counting. complianceman
C Banker Offline
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Posts: 22
Would an in person debit to the account that is used to purchase an Official Check payable to a third party count?

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#708262 - 03/28/07 08:01 PM Re: Reg. D, MMDA and Transaction Counting. John Burnett
notuntermywatch Offline
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Joined: Jun 2006
Posts: 392
MN
John,

Would you say that the following ACH items would be limited to 3
POS, ARC, CIE, PBR (ONE TIME), POP, PPD (ONE TIME), TEL, WEB?

I had someone tell me that more ACH transactions are now counted for the three but I can't find anything official.

Do you recommend making the change within our system?

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