Reg CC next day availability

Expedited Funds Availability Act – Requires that next-day availability of deposits be raised to $200 from $100 and require this amount to be updated every five years based on the Consumer Price Index.

Can someone tell me when this takes effect?

After they release the amendment to the regulations and then on the effective date that they set at that time.

so we don't know yet?

The "Transfer Date" is the effective date for the amendment to the EFAA, and the Transfer Date has been defined as July 21, 2011. Prior to that date, authority and responsibility for managing Regulation CC is vested in the Federal Reserve Board; on and after the Transfer Date, the Board shares the authority and responsibility with the Director of the new CFPB.

If the Board issues a proposed and final rule amending the $100 next day amount, you can be reasonably sure that the effective date won't be prior to 7/21/11. If the Board delays action, it's possible an amendment won't be proposed for a while, until the Director is in office and up to speed. But I look for something to be effective very soon after 7/21/11 in any event.

Note: Just in case you don't read further in this Thread, it has become clear since this post was made that the change to $200 next day availability will be effective on the Transfer Date (set at 7/21/11) whether or not there is an amendment to the regulation. The DFA provision amended the EFAA as of the Transfer Date, and that will be the law then, regardless what the regulation says.

So, the change to $200 next day availability will begin 07/21/2011?

DD, as I tried to explain one post above yours, you can't put a firm date on it because we don't know who will propose and finalize the amending rule, or when it will be done. I think it will be sometime on or after 7/21/11, but I can't pin it down any closer than that.

Note: It has since become clear that the change will be effective on the Transfer Date, whether or not the regulation is updated.

::slaps DD::

Get with the program, Son!

Just want to confirm that we still don't know for sure the date, yet, right? Making sure I haven't missed something since I've heard from others the last couple of days that this is for sure a change as of 7/21 (but I don't recall seeing a proposal or final rule yet).

Technically, the amendment will become efffective on the transfer date and you might was well start preparing for it. The Fed could just issue the amendment to the regulations in final form at anytime, as all they can really do is change the $ amount anyway. They still have 4 months.

See my post in this thread for a Reg. CC proposed rule that the FRB just announced.

In the document the Reads Regs linked to, the Fed says that banks will have to comply with the increase to $200 on or before 7/21/11 whether or not the regulation is amended by then.

I'm revising our check hold guidelines in light of the next day availability change from $100 to $200.

Currently, for a large deposit hold, $100 is made available the next business day, and $4,900 and the 2nd business day. With the change to $200, will the $4,900 for the 2nd business day remain the same, or will it be reduced to $4,800 so that no more than $5,000 is made available by the 2nd business day? Does this make sense?

it be reduced to $4,800 so that no more than $5,000 is made available by the 2nd business day

Are you aware if the Reg CC calculator on BOL will be updated on or before 07/21/2011? I sure hope so. My tellers need this calculator!!

We are required to notify our customers about the change. We were planning on doing this with a statement message. Does anyone know of any sample verbage we should use?

"Funds Availability Changes effective (Date). The first $200 of your deposit will be made available in accordance with our funds availability policy."

Thanks! And just to clarify, we can opt for a statment message instead of a mass mailing, correct?

correct. a statement message is all you need.

Thank you guys for all your insight! These forums are great!

IMHO such a statement does not amend/modify your current funds availability disclosure. You already make the first $200 (and all additional funds) "available in accordance with our funds availability policy". The statement does not change your policy by stating that the first $200 will be available the next business day.

Andy and I have reviewed the Tool, and a change is planned. We'll drop a note into our Daily Compliance Briefing when the revised tool is available.

Yep. We are already planning changes so it will be updated as per Reg CC.

Randy: Are you listening in on our compliance conference calls???

We had this very conversation yesterday afternoon. I tried to convince other participants that we already give out $200 in accordance with our disclosed policy; it's that policy that is changing. The consensus was that we therefore don't need to disclose. Ha! My point was that our stmt message wasn't informative.

I was reviewing our Regulation CC verbiage and noticee two things: first, we do give a copy to both demand and savings account customers, and second, it does not specifically reference transaction accounts. We have rarely, if ever, put a 'hold' on a deposit to a savings account. However, would the facts above mean that we would need to follow that funds availability policy if we did? I'm going to see if we can change both the verbiage and configure DepositPro so that it does not produce this disclosure when creating a savings account.

Doug -

Our disclosures reference both checking and savings accounts and therefore we've been applying the same availability to items deposited in either type of account. I would have liked to take it out of the wording on the savings disclosure, but I don't think we had the flexibility to do so with our forms vendor.

I'm afraid I may be in the same boat. However, I have learned that when we did (rarely) apply a hold to a savings account, the same 'rules' were used as for transaction accounts, so we're okay on that aspect.