Sec. 229.16 Specific availability policy disclosure.
(a) General. To meet the requirements of a
specific availability policy disclosure under Secs. 229.17 and 229.18(d),
a bank shall provide a disclosure describing the bank's policy as to when
funds deposited in an account are available for withdrawal. The disclosure
must reflect the policy followed by the bank in most cases. A bank may
impose longer delays on a case-by-case basis or by invoking one of the
exceptions in Sec. 229.l3, provided this is reflected in the disclosure.
(b) Content of specific availability policy
disclosure. The specific availability policy disclosure shall contain the
following, as applicable--
(1) A summary of the bank's availability policy;
(2) A description of any categories of deposits
or checks used by the bank when it delays availability (such as local or
nonlocal checks); how to determine the category to which a particular deposit
or check belongs; and when each category will be available for withdrawal
(including a description of the bank's business days and when a deposit
is considered received);1
1 A bank that distinguishes
in its disclosure between local and nonlocal checks based on the routing
number on the check must disclose that certain checks, such as some credit
union share drafts that are payable by one bank but payable through another
bank, will be treated as local or nonlocal checks based upon the location
of the bank by which they are payable and not on the basis of the location
of the bank whose routing number appears on the check. A bank that makes
funds from nonlocal checks available for withdrawal within the time periods
required for local checks under Secs. 229.12 and 229.13 is not required
to provide this disclosure on payable-through checks to its customers.
The statement concerning payable-through checks must describe how the customer
can determine whether these checks will be treated as local or nonlocal,
or state that special rules apply to such checks and that the customer
may ask about the availability of these checks.
(3) A description of any of the exceptions
in Sec. 229.13 that may be invoked by the bank, including the time following
a deposit that funds generally will be available for withdrawal and a statement
that the bank will notify the customer if the bank invokes one of the exceptions;
(4) A description, as specified in paragraph
(c)(1) of this section, of any case-by-case policy of delaying availability
that may result in deposited funds being available for withdrawal later
than the time periods stated in the bank's availability policy; and
(5) A description of how the customer can
differentiate between a proprietary and a nonproprietary ATM, if the bank
makes funds from deposits at nonproprietary ATMs available for withdrawal
later than funds from deposits at proprietary ATMs.
(c) Longer delays on a case-by-case basis--(1)
Notice in specific policy disclosure. A bank that has a policy of making
deposited funds available for withdrawal sooner than required by this subpart
may extend the time when funds are available up to the time periods allowed
under this subpart on a case-by-case basis, provided the bank includes
the following in its specific policy disclosure--
(i) A statement that the time when deposited
funds are available for withdrawal may be extended in some cases, and the
latest time following a deposit that funds will be available for withdrawal;
(ii) A statement that the bank will notify
the customer if funds deposited in the customer's account will not be available
for withdrawal until later than the time periods stated in the bank's availability
policy; and
(iii) A statement that customers should ask
if they need to be sure about when a particular deposit will be available
for withdrawal.
(2) Notice at time of case-by-case delay--(i)
In general. When a depositary bank extends the time when funds will be
available for withdrawal on a case-by-case basis, it must provide the depositor
with a written notice. The notice shall include the following information--
(A) A number or code, which need not exceed four digits, that identifies the customer’s account.
(B) The date of the deposit;
(C) The amount of the deposit that is being
delayed; and
(D) The day the funds will be available for
withdrawal.
(ii) Timing of notice. The notice shall be
provided to the depositor at the time of the deposit, unless the deposit
is not made in person to an employee of the depositary bank or the decision
to extend the time when the deposited funds will be available is made after
the time of the deposit. If notice is not given at the time of the deposit,
the depositary bank shall mail or deliver the notice to the customer not
later than the first business day following the banking day the deposit
is made.
(3) Overdraft and returned check fees. A depositary
bank that extends the time when funds will be available for withdrawal
on a case- by-case basis and does not furnish the depositor with written
notice at the time of deposit shall not assess any fees for any subsequent
overdrafts (including use of a line of credit) or return of checks or other
debits to the account, if--
(i) The overdraft or return of the check or
other debit would not have occurred except for the fact that the deposited
funds were delayed under paragraph (c)(1) of this section; and
(ii) The deposited check was paid by the paying
bank. Notwithstanding the foregoing, the depositary bank may assess an
overdraft or returned check fee if it includes a notice concerning overdraft
and returned check fees with the notice required in paragraph (c)(2) of
this section and, when required, refunds any such fees upon the request
of the customer. The notice must state that the customer may be entitled
to a refund of overdraft or returned check fees that are assessed if the
check subject to the delay is paid and how to obtain a refund.
(d) Credit union notice of interest payment
policy. If a bank described in Sec. 229.2(e)(4) begins to accrue interest
or dividends on all deposits made in an interest-bearing account, including
cash deposits, at a later time than the day specified in Sec. 229.14(a),
the bank's specific policy disclosures shall contain an explanation of
when interest or dividends on deposited funds begin to accrue.
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