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#1432938 - 08/23/10 08:59 PM Night Deposits during banking hours
beegee Offline
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A recent seminar I attended stated examples of UDAP is:

-- Date of deposit for items at night depository during banking hours.

We do have signage that states when deposits are credited. Do most have this addressed in their agreements? Is there new precedence on this?
Last edited by beegee; 08/23/10 09:21 PM.
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Operations Compliance
#1433065 - 08/24/10 09:15 AM Re: Night Deposits during banking hours beegee
Elwood P. Dowd Offline
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You need to ask this question of the people who made the list...

As the commentary to Reg CC specifically indicates you may consider a deposit as made "...when removed from the facility and available for processing I doubt they can offer any substantive evidence that says anything more specific is necessary.
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#1433068 - 08/24/10 09:47 AM Re: Night Deposits during banking hours Elwood P. Dowd
rlcarey Online
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Ken - doesn't it depend on where the night depository is located?? I think what you quoted is for an off-premise facility. The commentary goes on to say:

If an unstaffed facility, such as a night depository or lock box, is on branch premises, the day of deposit is determined by the banking day at the branch at which the deposit is received, whether or not it is the branch at which the account is maintained.

From my understanding, if customer can get to your on-site night depository during the day, you better be opening it at the close of business and processing any deposits.
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#1439643 - 09/07/10 07:15 PM Re: Night Deposits during banking hours rlcarey
beegee Offline
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We have recently gone to same day banking - is there any requirement to have funds availability notices on night deposit drops or in the night deposit agreement?

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#1440211 - 09/08/10 06:03 PM Re: Night Deposits during banking hours rlcarey
Elwood P. Dowd Offline
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Randy, I have to agree that the two sentences are intended to distinguish between on and off premise night depositories, but their wording is inconsistent. Regardless, the practice you suggest is prudent.

Beegee, it's not required in either place. I suggest you just tell them they can obtain a copy of your bank's current funds availability schedule at any time.
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#1440227 - 09/08/10 06:29 PM Re: Night Deposits during banking hours Elwood P. Dowd
Pup Offline
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We open ours in the morning....that's it.

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#1440304 - 09/08/10 07:38 PM Re: Night Deposits during banking hours Pup
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Ditto Fraud Pup

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#1440344 - 09/08/10 08:06 PM Re: Night Deposits during banking hours
Elwood P. Dowd Offline
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...which takes us back to the original question which at least now appears to have some basis in regulation. Beegee's trainer might be suggesting that failing to treat the day a deposit was dropped into an on-premise night depository as the banking day of deposit could be classified as an unfair or deceptive act or practice.

Violation of Reg CC? Maybe, but I would have no problem saying that's about as clear as mud. UDAP? Only if you're trying to get your audience fired up and don't have enough substantive material to make it work. wink
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#1440348 - 09/08/10 08:13 PM Re: Night Deposits during banking hours Elwood P. Dowd
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Ours has a sign above it which reads, "Deposits dropped after 8:30 am will be processed on next days business". I hope we don't close it before 8:30 am.

It is also in the Commercial Lane of our Drive Thru, which opens at 8am, so if you are dropping off at 8:15, you'd have to stop short and drop in the night drop...not very common but it happens.

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#1440404 - 09/08/10 09:05 PM Re: Night Deposits during banking hours Pup
beegee Offline
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Based on Randy's citation it appears we are required to treat deposits dropped into the night box during banking hours as same day deposits. I don't think we can trump the regulation by disclosing deposits won't be processed the next business day if deposited after 8:30. Our presenter brought this back from the ABA National Compliance Conference and this came from examples the regulators discussed as potential UDAP. I think examiners are chomping at the bit to pull the UDAP card.

Am I misunderstanding this???

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#1440423 - 09/08/10 09:19 PM Re: Night Deposits during banking hours beegee
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It's an "After Hours Deposit" or "Night Drop". I think the purpose of the box coupled with a warning that the end of the business date for that medium is 8:30 is sufficient.

Just like the warning at the teller line that the end of the business date is 3:00 is sufficient (or was when that was the case).

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#1440430 - 09/08/10 09:26 PM Re: Night Deposits during banking hours Pup
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^^^^admits that he sometimes make assumptions that prove the definition of the word A S S U M E. smile

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#1448500 - 09/27/10 01:37 PM Re: Night Deposits during banking hours Pup
beegee Offline
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I bounced this question off a compliance expert and received the following feedback:

You are correct in your interpretation. If your night depository is a part of the branch then anything deposited in it during your banking hours is received by the bank on that day. Because of that many banks lock or otherwise disable their night depository facility during banking hours.

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#1449282 - 09/28/10 06:07 PM Re: Night Deposits during banking hours beegee
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We've got more than enough compliance experts opinions in this forum alone, I'd like for a regulator to chime in. Instead of using common sense - night depository = after hours drop off for next day's posting, and we post a sign stating this, what are they going to do, tar and feather us? Our customers understand this and are fine with it, why aren't the regulators?

Can you tell I've just about had it with all the nit-picky unworthy regulations out there. Regardless of what regulators think, most of us banks are not out to stick it to the consumer/customer. We've got enough common sense to know that if you do, you won't be in business long.

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#1449349 - 09/28/10 07:39 PM Re: Night Deposits during banking hours
OnTheEdge Offline
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Preach on sister!
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#1451200 - 10/04/10 03:19 PM Re: Night Deposits during banking hours OnTheEdge
beegee Offline
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Common Sense went out the window a long time ago... Just trying to follow the rules...

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Instead of using common sense...

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#1454942 - 10/13/10 09:28 PM Re: Night Deposits during banking hours beegee
BetsyS Offline
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We’ve been monitoring this thread. Like many, we open our Night Depository at 8:30am. We asked our Regulator (OCC) about posting a sign disclosing this as our cut-off time for deposits received. They responded it was ok to post a sign as long as it was prominently displayed, but since it was an on-premise depository, the cut-off cannot be earlier than 2 p.m. according to the Commentary to 229.19(a)(6):

“Different cut-off hours may be established for different types of deposits. For example, a bank may establish a 2 p.m. cut-off for the receipt of check deposits, but a later cut-off for the receipt of wire transfers. Different cut-off hours also may be established for deposits received at different locations. For example, a different cut-off may be established for ATM deposits than for over-the-counter deposits, or for different teller stations at the same branch. With the exception of the 12 noon cut-off for deposits at ATMs and off-premise facilities, no cut-off hour for receipt of deposits for purposes of this subpart can be established earlier than 2 p.m.”
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