Expedited Funds Availability Act


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Expedited Funds Availability Act

Legislation in the United States, passed in 1987, that requires banks to make checks and other deposits available within a certain number of days. Depending on circumstances such as the size of the deposit and how long the account has been open, the bank must make the deposit available on the first, second, seventh or ninth day. See also: Check hold.
References in periodicals archive ?
Kohn, Vice-Chairman of the Board of Governors of the Federal Reserve System from 2006 to 2010, notes the central function of the payment schedules of the Expedited Funds Availability Act: "The Expedited Funds Availability Act requires that the Board reduce the maximum hold periods to the period of time necessary for the depositary bank to reasonably expect to learn of the nonpayment of most checks in a given category.
pdf (recommending that the Expedited Funds Availability Act (EFAA) be amended to lengthen the maximum permissible hold period for local checks from two to three business days).
In conclusion, I believe that we have learned several lessons from our experience in implementing the Expedited Funds Availability Act.
I appreciate this opportunity to discuss our experience in implementing the Expedited Funds Availability Act and to suggest certain modifications that should be made to the act.
The increase results from the purchase of data processing and data communications equipment to handle increased workloads and improve contingency functions, and the full-year impact of equipment purchased to meet the demands of the Expedited Funds Availability Act.
As you may remember, the Expedited Funds Availability Act gave the Federal Reserve Board regulatory authority to improve the check collection and return check systems.