I am reviewing our October holds for compliance with Reg CC, I know the Federal Reserve was closed on Oct. 8, 2012. My question is if we, like most banks, were not closed and date of deposit was Oct. 08, 2012, do we still start counting our days on Tuesday Oct. 09, 2012, making our expiration date as Tuesday Oct. 09, 2012 on our system for customer to be able to get the funds by opening of the 2nd business day, which is Oct. 10, 2012? Sorry if I worded this confusing. The hold is a Case by Case 2 day hold.
Thanks in advance.

You are correct. You accepted the deposit on your BANKING day, so the funds for a case-by-case hold need to be available by 9 AM on the 2nd business day (Oct. 10th). The system would expire the hold Tuesday night so as to meet that availability.

Thanks Doug, I just wanted to be reassured, I am finding a lot of holds with expiration dates of Oct. 10th, boy this is going to be a tough write up.
I appreciate your quick response.

Hold on. Don't get out the whips and chains just yet.

October 8 was not a business day by definition in Reg CC (it was the second Monday of October). Because it was not a business day, it cannot be a banking day, either, since banking days are business days on which the bank is open for substantially .... (you know the rest).

Regardless of whether you processed work with October 8 as the transaction date, any deposit received that day is considered for Reg CC purposes as received on the next banking day, which was 10/9.

RULE 1: It's all about the DEFINITIONS!
RULE 2: See Rule 1.


All your tellers just breathed a sigh of relief, right?

You have a keener eye than I.

In reading the definition of a BANKING day the first time, I either ignored or didn't fully consider the use of the phrase "BUSINESS DAY" in that definition. Definitions within definitions!

Thanks for your always considered responses.

Doug, if it's any consolation, this is something I've seen tripped over scores of times. The phrase "business day" in the "banking day" definition is so routine that it's easy to miss the fact that it's a defined term in the regulation.

The Official Staff Commentary, paragraph II-G, explains how and why the Fed "split hairs" by defining two separate terms, one of them in terms of the other.

John
Just read your response this morning, thanks for stopping me from making an utter idiot of myself, thank God for Guru's.

It's interesting, perhaps, to note that if a bank ignored this little definitional dance and made next-day items available on the 9th (the business day following the calendar day of deposit), it still would not be a violation of the regulation, since it's always permissible to make funds available sooner than the rule requires.