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#2223875 - 10/17/19 01:29 PM Time Deposit - Regulation D
ybravo Offline
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Joined: Sep 2015
Posts: 17
The Bank would like to explore the possibility of placing customer time deposits for less than 7 days and would like to know if this is feasible and under what requirements which would not invoke Regulation D. Thanks!

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#2223876 - 10/17/19 01:34 PM Re: Time Deposit - Regulation D ybravo
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
How can you have a time deposit for less than 7 days when one of the requirements to be a time deposit is:

(A) Payable on a specified date not less than seven days after the date of deposit;
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2223884 - 10/17/19 03:05 PM Re: Time Deposit - Regulation D ybravo
ybravo Offline
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Joined: Sep 2015
Posts: 17
Is there a way, the bank could place the TDs for shorter term under specific requirements and what would be the penalty for the bank?

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#2223895 - 10/17/19 03:53 PM Re: Time Deposit - Regulation D ybravo
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
They would just be demand deposits no matter what you called them from the product name.

(b)(1) Demand deposit means a deposit that is payable on demand, or a deposit issued with an original maturity or required notice period of less than seven days, or a deposit representing funds for which the depository institution does not reserve the right to require at least seven days' written notice of an intended withdrawal.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2223897 - 10/17/19 04:31 PM Re: Time Deposit - Regulation D ybravo
ybravo Offline
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Joined: Sep 2015
Posts: 17
Thanks!

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