Skip to content
 

Night Depository Procedures

Answered by: 
John Burnett

Question: 
Is there a law or rule that the night depository must be checked in the afternoon at or before the bank's posted daily cut-off time? If not, is there a requirement or best practice to post a notice that the night depository is only checked in the morning and transactions placed in the depository during business hours will not be picked up until the following morning? Do you have an idea of what most banks do? I think that most banks check the night depository only in the morning and do not post a notice of any kind. Where can I find any regulatory guidance or direction on this subject?
Answer: 

Unless there is a state law affecting your bank, deposits placed in a night depository are considered made on the date and at the time they are removed from the night depository and made available to the bank for processing. Read more about it here: Reg CC, section 229.19. Many banks, as a matter of customer relations, post a statement at their night drops indicating that deposits are removed for processing at (approximate time). Other banks simply inform their night depository customers of the approximate processing time at the time they sign up for night drop access or include language to that effect in the night drop contract. There is nothing in the regulation that requires a notice. Incidentally, there are many customers whose contracts call for their night bags not to be processed until the bag is opened at the branch by the depositor's representative. In such cases, the deposit isn't made (and availability days counted) until the bag is opened by the customer and the contents are made available for processing.

First published on BankersOnline.com 6/23/08

First published on 06/23/2008

Filed under: 
Operations
Filed under operations as: 
Availability
IT

Report a problem with this page

Search Topics