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#144206 - 12/29/03 10:06 PM
Money Market Sweeps
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Gold Star
Joined: Aug 2003
Posts: 372
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I have a money market sweep question. I understand the transaction limitations on MMDA's however, is anyone using a fax service, or can you use a fax service, to authorize by 'messenger' transactions? Is there a way to avoid transaction limitations on the accounts, legally!!!, and use the MMDA as a holding account, but sweep to a transaction account to cover overdrafts? What are others doing about MMDA 'sweeps'??
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#144207 - 12/29/03 10:17 PM
Re: Money Market Sweeps
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Platinum Poster
Joined: Jun 2003
Posts: 938
Do you know the way to ...
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Quote:
can you use a fax service, to authorize by 'messenger' transactions? Is there a way to avoid transaction limitations on the accounts, legally!!!
A fax machine doesn't count as a "messenger". It doesn't pass the "D" - as in "get off your Duff" - test. The customer or his representative (messenger) has to actually get up off the couch and go to the branch / ATM for it not to count as a charged transaction.
Or, to look at it another way, the fax is still using phone lines, just like Web banking, audio response systems, or your call center. It's still "non-personal".
I know, we're all looking for "ways around" the restrcitions - especially at the end of the month! We'd rather have them keep their funds in non-reservable accounts (non-transaction accounts), the customers would rather have their funds there so they can earn interest... but if they're being used for transactions, the funds need to be in the checking accounts.
Still the best way to "get around" the restriction is to set up a personal line of credit for the overdrafts. Transfers from savings for loan payments are unlimited...
_________________________
Just a lowly 1st Year Law Student ("1L"), so don't take anything I say seriously!
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#144217 - 06/14/04 01:29 PM
Re: Money Market Sweeps
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Power Poster
Joined: Nov 2000
Posts: 2,701
PA
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Thanks, David - I'm not sure whether I ever knew that or not, but if I did, I had forgotten. Can you tell me where I can find the FRB memo?
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Opinions expressed are mine and not necessarily those of my employer.
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