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#721277 - 04/24/07 10:16 PM MMDA excessive transactions
parr04 Offline
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Joined: Aug 2004
Posts: 394
oklahoma
I understand checks written to yourself do not count as one of the six allowed transactions per month on a mmda account. We have a customer, a dba called Joe Banker, DBA Quick Cleaning. This customer writes checks made payable to Quick Cleaning and deposits them at another bank ( no kiting found). Would these checks be counted or are they exempted?

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Deposits and Payments
#721367 - 04/25/07 11:51 AM Re: MMDA excessive transactions parr04
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,965
TN
Checks deposited at another institution do count as far as I know. If the customer comes in and cashes these checks at your institution - those don't count.
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#721465 - 04/25/07 02:18 PM Re: MMDA excessive transactions Skittles
mck401 Offline
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Joined: May 2006
Posts: 1,168
Texas
I agree with Skittles, if the transaction is done in person that would be unlimited but depositing into another account at a different institution involves a 3rd party.
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#721626 - 04/25/07 03:54 PM Re: MMDA excessive transactions mck401
parr04 Offline
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Joined: Aug 2004
Posts: 394
oklahoma
But doesn't the regulation say a item deposited to another account of the customer by mail, messenger or in person does not count. It does not say it has to be at the same bank.

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#721837 - 04/25/07 06:19 PM Re: MMDA excessive transactions parr04
mck401 Offline
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Joined: May 2006
Posts: 1,168
Texas
I don't believe that is what the regulation state (I can't put my hands on it at this moment) My quick reference guide from my last training 07/06 states:

Unlimited withdrawal and transfer activity on savings and MMDA is allowed for 1) withdrawals made in person 2) ATM w/d and transfers 3) transfers made to repay loans and associated expenses at the same institution 4) withdrawals made by telephone or mail when the check is sent to the depositor

This is why I believe if you send a check to the customer's account at a different institution, it would be counted in the limited transactions. A third party is involved.
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#721920 - 04/25/07 06:58 PM Re: MMDA excessive transactions mck401
parr04 Offline
Gold Star
Joined: Aug 2004
Posts: 394
oklahoma
Seminar manual states "not included in the 6 per month:
* by mail or telephone, when the check is mailed to the
depositor
* in person,
* by messenger,
* made through an ATM and
* transfers made to pay loans and associated expenses at the
same institution

Looks to me they can deposit by mail or in person at
another bank and it would not count. This type of
transaction is not specifically mentioned like the transfers
made to pay loans.

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#721923 - 04/25/07 07:02 PM Re: MMDA excessive transactions parr04
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
You need to understand the context of the regulation, not what you find elsewhere. The reference to "by mail or telephone, when the check is mailed to the depositor" is referring to cases in which the depositor calls or mails in a request that funds be withdrawn from the [savings or MMDA] account and that the bank send the proceeds of the withdrawal to the depositor by bank check.

It has nothing to do with writing a check on an MMDA and depositing that check in another bank. For the record, I am among those that would consider such a transfer (to the third party bank) a 3/month transaction.
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#722026 - 04/25/07 08:35 PM Re: MMDA excessive transactions John Burnett
parr04 Offline
Gold Star
Joined: Aug 2004
Posts: 394
oklahoma
Thank you for the input. This was a situation that had never came up before.

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#722040 - 04/25/07 08:48 PM Re: MMDA excessive transactions John Burnett
mck401 Offline
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Joined: May 2006
Posts: 1,168
Texas
Thanks for posting, John. Your explanation is what I was trying to convey-only easier to understand.
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#727878 - 05/07/07 09:38 PM Re: MMDA excessive transactions mck401
ksm Offline
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ksm
Joined: May 2003
Posts: 302
Midwest
We have a customer who wrote four checks in May and two of them where made payable to our bank for loan payments. Have they violated the three check rules? Thanks for clarifying this.

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