If the bank has a 2:00 cutoff time for the lobby, and 1:00 cutoff for the ATM, do both have to be included in the initial funds availability policy disclosure given at account opening? Thank you.

You can include both times, but you would also be safe to list just the earliest one.

This post was edited by its author to correct an erroneous reply.

You are not required by Regulation CC to disclose your ATM cutoff time. Notice the language in the Commentary to §229.19(a) - under item #6:

"The choice of cut-off hour must be reflected in the bank's internal procedures, and the bank must inform its customers of the cut-off hour upon request."

So, you have to be able to tell customers who ask, but you don't have to publish the cutoff time (for ATMs) in your disclosures.

From a "PR" perspective, you might consider including this information in your disclosures, or in an ATM notice.

But what about the commentary on Section 229.16(b), #6 that states:

"The business-day cutoff time used by the bank must be disclosed and if some locations have different cutoff times the bank must note this in the disclosure and state the earliest time that might apply. A bank need not list all of the different cutoff times that might apply. If a bank does not have a cutoff time prior to its closing time, the bank need not disclose a cutoff time."

We have and disclose 3 different cut off times in our disclosures. The night drop is 7 am, the ATM is noon, and lobby is 2 pm. If we chose to disclose only the earliest time, we would be disclosing 7am (which would not be good pr). If our tellers enter the night drop or ATM prior to times listed, they are required to go back in at the times listed, or shortly thereafter (as long as we process the work at or later than the disclosed cutoff times we are ok). You may want to think about your night depository also if you have one.

I would re-analyze Reg CC regarding your 7am cut-off on a night depository. If it's an on-premise night depository, a deposit made there is considered the same as being made at the branch and the earliest you could cut off deposit acceptance is 2:00PM.

"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."

See the commentary to Reg CC regarding night depositories:

"4. Other facilities.
a. In addition to deposits at staffed facilities, at ATMs, and by
mail, funds may be deposited at a facility such as a night depository or
a lock box. A night depository is a receptacle for receipt of deposits,
typically used by corporate depositors when the branch is closed. Funds
deposited at a night depository are considered deposited on the banking
day the deposit is removed, and the contents of the deposit are
accessible to the depositary bank for processing. For example, some
businesses deposit their funds in a locked bag at the night depository
late in the evening, and return to the bank the following day to open
the bag. Other depositors may have an agreement with their bank that the
deposit bag must be opened under the dual control of the bank and the
depositor. In these cases, the funds are considered deposited when the
customer returns to the bank and opens the deposit bag."

We notify the customer and have a notice posted on the night depository when the deposits will be removed. The night depository is designed for use when the facility is closed. It is not staffed.

I think you are reading more into that passage than what is there. The key phrase in that passage is "accessible to the bank for processing". It later explains that if you require the customer to be present in order to process the deposit, the funds are not "accessible for processing" until the customer comes into the branch - sometimes this may be the next day. Unless you are operating under such an arrangement, I think the commentary regarding unstaffed "on premise" facilities that I quoted earlier applies and would preclude you from establishing a 7am cut-off.

I spoke with a representative of Federal Reserve a few years back to clarify Reg CC's applicability to night depository cut off times. She indicated that there was no rule governing a specific cut off time. She further stated that we should consider the deposit received when we remove the items from the night depository. We also discussed the "available for processing" aspect as you mention regarding merchant drop bags.

About a year following this conversation, the issue arose again during a bank acquisition. I obtained guidance from OCC clarifying that the bank can establish an A.M. cut off.

We post our cut off time on our night depositories for customer information. (Obviously, I have the names of each individual offering these opinions in my records should I ever have to explain our policy to an auditor or regulator.)

Brenda, do you list the Night Depository cutoff time in your initial funds availability notice provided at account opening?

We also have differnet cutoff times. Night depository is 7am. These times are posted at the night drop and also in our initial disclosures, as well as our 12 noon ATM cut off. We have been examined numerous times by the FED and they have had no issue with our times as they are disclosed.

We do not list the night depository cut off in our written disclosure. We only list our daily cut off of 2:00 p.m. We currently do not allow deposits into our ATMs.