Topic: Regulation CC
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It is true that savings accounts are exempt from Reg.CC?
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We agree that Regulation CC does not apply to savings account. See 12 CFR 229.2(a) (definition of “account”). As explained in the Official Staff Commentary, the “account” definition “does not cover time deposits or savings deposits.” Comment 1, 12 CFR 229.2(a). Regulation CC’s definition of “account” includes a reference to Regulation D, which sets up…
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Does Regulation CC apply to business or money market accounts?
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Regulation CC applies to all transaction accounts and generally does not exclude business-purpose deposits. See 12 CFR 229.2(a) (definition of “account”). There are some exceptions, as some of the provisions in the regulation apply only to consumer accounts (such as 12 CFR 229.18(b), the lobby notice required at locations where employees accept consumer deposits). However,…
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If we don’t accept deposits at an ATM location, does the Regulation CC disclosure requirement apply?
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We do not believe that the regulation requires the funds availability notice at ATMs that do not accept deposits. The regulation states that the notice must be provided “at each ATM location.” However, the regulation defines “ATM” as “an electronic device at which a natural person may make deposits to an account by cash or…
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The Regulation CC disclosure requirements apply to locations where banks accept “consumer deposits.” However, I thought that Regulation CC applied to all deposit accounts. Why does the disclosure requirement mention only consumer deposits?
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You are correct that Regulation CC generally applies to all transaction accounts, whether consumer or business accounts. See 12 CFR 229.2(a). However, the particular provision of the regulation that you reference, 12 CFR 229.18(b), applies only to consumer accounts, while most of the other provisions of the regulation apply to all deposit accounts. (There are…
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If we are acquiring the assets of another bank, do we need to provide the debit card customers with any new disclosures?
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In general, new account disclosures may be required when the information being disclosed or the account terms differ from those of the predecessor bank. Regulation CC Disclosure Requirements For example, if any of the items required to be disclosed in your funds availability policy differs from the predecessor bank’s policy, we would recommend making new…
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What disclosures should we make before moving up the cut-off time for check deposits to noon on Saturdays?
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The Promissory Note and Bank Holiday Act already permits banks to close at noon on each Saturday. 205 ILCS 630/17. Also note that the cut-off hour for the receipt of deposits may be no earlier than 2:00 p.m. (or 12:00 p.m. for ATMs) under Regulation CC, but you do not have to accept deposits after…
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Do we need to inform our regulators that we are moving our cut-off time for accepting checks back by one hour?
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As you know, Regulation CC requires you to notify your customers at least thirty days prior to implementing any change that shortens your availability policy. 12 CFR 229.18(e). However, the regulation does not require you to notify your primary regulator of the change. We are not aware of any OTS or OCC requirements apart from…
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If we have customers who prepare tax returns and pay out tax refunds to their customers, would Regulation CC apply to the customers of the tax preparers, even though they do not have accounts with our organization?
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Regulation CC would only apply to the account holder, who is the tax preparer. In the situation you have described, where customers have signed an agreement stating that they cannot make withdrawals or deposits, the customers would not be considered account holders. The disclosure requirements and other rules in Regulation CC apply only to “customers”—a…
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If we are reducing the business hours for one of our branches, do we need to be aware of any CRA issues?
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We are not aware of any laws that address a reduction in branch hours, and so we can only make suggestions as to reputation risk and CRA risks. The Illinois Promissory Note and Bank Holiday Act imposes duties when a bank plans to close a branch one day per week, but it is silent as…