(a) In general. A depositary bank shall begin
to accrue interest or dividends on funds deposited in an interest-bearing
account not later than the business day on which the depositary bank receives
credit for the funds. For the purposes of this section, the depositary
bank may--
(1) Rely on the availability schedule of its
Federal Reserve Bank, Federal Home Loan Bank, or correspondent bank to
determine the time credit is actually received; and
(2) Accrue interest or dividends on funds
deposited in interest- bearing accounts by checks that the depositary bank
sends to paying banks or subsequent collecting banks for payment or collection
based on the availability of funds the depositary bank receives from the
paying or collecting banks.
(b) Special rule for credit unions. Paragraph
(a) of this section does not apply to any account at a bank described in
Sec. 229.2(e)(4), if the bank--
(1) Begins the accrual of interest or dividends
at a later date than the date described in paragraph (a) of this section
with respect to all funds, including cash, deposited in the account; and
(2) Provides notice of its interest or dividend
payment policy in the manner required under Sec. 229.16(d).
(c) Exception for checks returned unpaid.
This subpart does not require a bank to pay interest or dividends on funds
deposited by a check that is returned unpaid.
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