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#294213 - 12/28/04 07:28 PM
Reg CC Restrictions for Early Closing
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Platinum Poster
Joined: Nov 2003
Posts: 530
Midwest
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With the holiday last week, there were banks in the area that closed before 2:00. Any thoughts on how that would not violate Reg CC, 229.19(a)(5)(ii), which states that funds may be considered deposited on the next banking day after a cutoff hour of 2:00 p.m. or later? I read that to mean that deposits are considered same day until 2:00 p.m., meaning we cannot stop courier service or close until 2:00.
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#294214 - 12/28/04 07:39 PM
Re: Reg CC Restrictions for Early Closing
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Power Poster
Joined: Nov 2001
Posts: 7,985
FINALLY ABOVE the gnat line
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The commentary states: "A bank is not required to remain open until 2:00 p.m. If a bank closes before 2:00 p.m., deposits received after the closing may be considered on the next banking day."
_________________________
"Once you learn to read, you will be forever free." - Frederick Douglass
My Opinion Only.
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#294216 - 12/28/04 08:44 PM
Re: Reg CC Restrictions for Early Closing
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Platinum Poster
Joined: Nov 2003
Posts: 530
Midwest
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Thanks, John, for the clarification! Our issue was exactly that- we wanted to pick up work early but remain open until 2:00, which cannot be done.
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#294217 - 12/28/04 09:47 PM
Re: Reg CC Restrictions for Early Closing
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Anonymous
Unregistered
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One clarification- I was mistaken in my original message. Other banks in our area cutoff early on Christmas Eve, but they remained open until 2:00. I would think that would be a violation of 229.19 if they didn't post anything received before 2:00 on the same day.
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#294218 - 12/28/04 09:54 PM
Re: Reg CC Restrictions for Early Closing
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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Many are of the opinion -- which I once shared but have since abandoned since I can now look at things a bit more objectively -- that keeping one teller on "today's work" and allowing customers to decide who does the transaction fits the spirit of the rule.
That would be true except that there's more at stake here than whether the customer needs the deposit to post today. The regulation is actually more concerned with determining when to start counting business days for purposes of availability, and that is always started on the banking day on which the deposit is received. True compliance with the regulation requires that ALL transactions received by 2 p.m. be considered "today's work."
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John S. Burnett BankersOnline.com Fighting for Compliance since 1976 Bankers' Threads User #8
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#294221 - 12/28/04 10:58 PM
Re: Reg CC Restrictions for Early Closing
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10K Club
Joined: Aug 2001
Posts: 21,939
Next to Harvey
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Randy,
I agree with you. To be in any way defensible, this has to be done so there is no effect on the customer. If they draw against the funds the following business day a next day availability bank would have to make certain the item was paid. As noted here before, the effects of an illegal hold or a failure to make funds available that results in wrongful dishonor are a lot more dramatic than any Regulation CC violation.
I'm just confessing my sins, not trying to lead a rebellion.
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