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Government Check - Funds Availability

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Our bank is located in Virginia and is in Federal district 05 and a customer has deposited a check drawn on the State of Maryland also in district 05. Since it is a State government check must we make the funds available as next day or do we simple treat the check as local since the check is drawn off of a state other than our own?

For determination of next day availability requirements for State government checks, Reg CC is very specific. In 229.10(c)(1)(iv)(B) it says one of the requirements for next day availability is that the check is deposited in a bank located in the same state as the state issuing the check. In your example, since the State of Maryland issued the check and the check is deposited in a bank located in Virginia, next day availability would not be required. For determination of local vs. non-local, you would use the check processing region, not the Fed district. You'd need to look at the transit routing number of the check and see whether it is included in the transit routing numbers located in your check processing region. These are identified in Appendix A.

First published on 8/13/07

First published on 08/13/2007

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