I'm hoping you can confirm my understanding that a paying institution is liable under Reg CC 229.38(a) for failing provide notice of nonpayment for a check in the amount of $5,000 or more under 229.13(c)? The measure of damages under 229.38 is the loss incurred up to the amount of the check, less the amount of the loss that would have been incurred had the paying institution exercised ordinary care. Can you provide an example of a liability calculation in which the paying institution's notice of nonpayment is late? How does the bank of first deposit pursue a claim against the paying institution for failing to provide proper notice by the deadline? I assume this would be on a "without entry" basis by sending a demand letter to the paying institution.
Our lender had a request for a reverse mortgage. He provided an Adverse Action Notice, but did he have to, since we don’t offer reverse mortgage loans?
I am researching how to determine which Fiduciary/Agency accounts meet the pass-through account FDIC coverage requirements. I would like to know what is customary to request from these potential clients, since FDIC requires that certain conditions are met, for example, deposit terms for accounts opened at the financial institution must match the terms the third party agent promised the customer and how the third-party fiduciary disclosed fees and other terms of the relationship to their clients, Custodian maintains name and ownership interest of each depositor and funds are not co mingled, applicable state law, etc. Do financial institutions require additional documentation or an account holder's certification to verify pass-through eligibility? Any information that can assist me in determining how to identify and verify FDIC pass-through coverage would be greatly appreciated.
When does the bank have to make ACH direct deposits available for withdrawal?
We are offering members a $100 incentive bonus if they open a checking account with direct deposit which would start within 60 days. We understand all of the disclosure requirements for the $100 payment. The argument is, must we disclose in the ad that the $100 will be reported as interest to the IRS? We of course will be sending the member a 1099-INT and reporting it to the IRS, but are we required to disclose that?