Topic: Regulation CC
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When a customer does a split deposit involving a large item, to both his checking and his savings account, what should the hold notice say regarding the hold amount? Should we give two hold notices, one notice for each account?
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While Regulation CC requires a written notice whenever you place a hold on funds deposited into a checking account, we are not aware of any similar regulatory requirements that would apply to placing a hold on funds deposited into a savings account. Regulation DD, which covers savings accounts, does not include any funds availability requirements.…
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If a branch has only one teller, and a customer comes in to make a deposit during one of the teller’s breaks, is that a problem? Should we post a sign during the teller’s breaks?
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We do not believe that any Illinois or federal laws would impose a notice requirement during times when no tellers are available to transact business. Regulation CC would not impose any notice requirements, as it explicitly does not “require a depositary bank to open or otherwise to make its facilities available for customer transactions on…
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Is a lottery check from the Illinois State lottery a state government check for purposes of Regulation CC?
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We believe that a lottery check presented for deposit should be treated as a state government check for purposes of Regulation CC’s next-day availability requirement. Regulation CC requires that a check drawn by “a state or a unit of general local government” that is deposited in person to a bank employee and into an account…
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Are we required to provide check images to our customers? If we are required to provide them upon request, can we charge for the check images?
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You are not required to include check images in customers’ account statements, but you must retain check images and provide them to customers on request. You may charge a reasonable fee for such images, provided that your customers have agreed to the fee. Neither Regulation CC nor the Uniform Commercial Code require that you provide…
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We suffered a loss because a paying bank failed to give us a large dollar notification on a check. We presented a check of an amount over $2,500 on a Tuesday, so we should’ve received notice of nonpayment from the paying bank by Thursday. However, they did not send us notice, and our customer withdrew most of the check funds on Friday. We received the returned check early in the week after (Monday or Tuesday).
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Under the facts you gave us, the paying bank may be liable to your institution for its failure to provide notice of nonpayment. Under Regulation CC, a paying bank must provide notice of nonpayment so that the depositary bank receives it by 4:00 p.m. on the second business day following the banking day on the…
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I know that Regulation CC does not apply to transaction holds on savings accounts, but are there any Illinois laws that might apply?
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We are not aware of any restrictions on placing holds on items deposited into a savings account (provided that the account falls into the Regulation CC definition of “savings account,” which refers to the definition of that term in 12 CFR 204.2). To our knowledge, no Illinois laws impose additional requirements on deposits into bank…