What Code of Federal Regulation says how often we need to pick up deposits from our ATM machines and how long after they are deposited we have to run these deposits through proof?

Our Funds availability is very vague on what we do for our depository ATMs.

Federal regulations don't ever require you to remove the deposits from the ATM. You can leave them there forever if you want. However, with that said, Reg CC requires when you have to treat the deposit as deposited for Reg CC purposes depending on whether the ATM is on banking premises or not. Refer to 229.19(a)(1) and (4).

I'm not sure if this is the answer to the question you asked, but at one time, we were having trouble deciding when it was acceptable to pick-up the deposits from our ATMs. If you look at Reg. CC 229.19 (5)(ii), you will see the cut-off time requirements.

Regulation CC outlines the special rules for determining when a customer must receive credit for a deposit as well as the allowable cutoff times for accepting a deposit. When a next-day item is deposited into a transaction account during banking hours, the bank must make the funds available in the account on the next business day. For instance, if a customer makes a deposit into his/her checking account through the ATM on Monday morning, these funds must be available to him/her by the opening of business on Tuesday morning (unless a hold is being placed on the item). A bank may set a cut-off hour of its banking day for the receipt of deposits not earlier than 2:00 P. M. or 12:00 P.M. for ATMs or off-premise facilities. If the Bank has established and posted on the ATM, a cutoff time of 1:00 p.m. then it is acceptable to retrieve the ATM deposits at any time during the day as long as you make a final pick up AFTER the posted cutoff time. This procedure will ensure that the customer will receive credit for the deposit on the next banking day as mandated by the Federal Regulation.

In our ATM's that have depository functions we pick up every morning when we balance the machines. Does this mean that we are not in compliance because we are doing it in the morning and not picking up after our cut-off time of that office?

I think so, yes. Your posted cut-off time notifies the customer that he/she has until the posted time to make a deposit that will be posted on that business day. By picking up deposits in the morning, all deposits made after pick-up time, but before the stated cut-off will not be posted on that days business.

You're only out of compliance if you delay funds availability for these ATM deposits based on the wrong date received. If the deposit is received in your ATM before noon, you have to consider it received on that business day. If after noon, you can consider it received on the next business day.

But if you do as many banks do, and make ATM deposits available on the next banking day, even if made fairly late in the day (often available before the deposit is removed for examination), you have no Reg. CC issue.