How long are we required to keep “Notice of Delayed Availability” forms when we put a hold on a customer deposit?

We believe that you must retain a record of these notices for no less than two years.

Regulation CC requires banks to give customers written notice whenever they invoke an exception to the availability schedules (other than the new account exception) and extend the time when funds will be available for withdrawal. Regulation CC also requires that banks retain evidence of compliance for not less than two years. Records may be stored using “microfiche, microfilm, magnetic tape, or other methods capable of accurately retaining and reproducing information.”

For resources related to our guidance, please see:

  • Federal Reserve, Consumer Compliance Handbook, Regulation CC: Availability of Funds and Collection of Checks, page 7 (“Whenever a bank invokes one of the exceptions to the availability schedules (except the new-account exception), it must notify the customer in writing. The bank may send a notice that complies solely with section 229.13(g)(1) (the ‘general exception notice’) or one of the two alternative notices described below.”)
  • Regulation CC, 12 CFR 229.13(g)(1) (“Subject to paragraphs (g)(2) and (g)(3) of this section, when a depositary bank extends the time when funds will be available for withdrawal based on the application of an exception contained in paragraphs (b) through (e) of this section, it must provide the depositor with a written notice.”)
  • Regulation CC, 12 CFR 229.13(g)(5) (“A depositary bank shall retain a record, in accordance with § 229.21(g), of each notice provided pursuant to its application of the reasonable cause exception under paragraph (e) of this section, together with a brief statement of the facts giving rise to the bank’s reason to doubt the collectibility of the check.”)
  • Regulation CC, 12 CFR 229.21(g)(1) (“A bank shall retain evidence of compliance with the requirements imposed by this subpart for not less than two years. Records may be stored by use of microfiche, microfilm, magnetic tape, or other methods capable of accurately retaining and reproducing information.”)