Regulation CC

Regulation CC (“Reg Double C”)

A federal banking regulation regarding the availability of funds and collection of checks,Reg CC sets limits for the length of time a financial institution may place a hold on the use of funds after a check has been deposited to an account. People commonly think funds must be available immediately if checks are drawn on local financial institutions, but that is not true.Large checks, such as are often received for real estate transactions, may have a hold time as long as 7 days for local checks, except that the first $5,000 must be made available on the first business day.

Other than the deposits described in the following list,checks drawn on local institutions must be credited on the second business day after deposit, and checks drawn on nonlocal institutions must be credited on the fifth day after deposit.A local institution is one in the same check processing region. The financial institution may increase the hold times for large deposits or for any number of factors causing it reasonable concern.The deposits described in the following list must be made available for withdrawal on the first business day after deposit except that items 3 through 7 can be made available on the second day after being deposited if the deposit is to one of the financial institution's own ATM machines, or on the fifth day after deposit if made to any other ATM machine:

1. Electronic payments
2. U.S. Treasury Department checks
3. Cash
4. U.S. Postal Service money orders
5. Federal Reserve and Federal Home Loan Bank checks
6. State or local government checks
7. Cashier's, teller's, or certified checks
8. Checks drawn on an account at the same financial institution

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Part 2 takes into account developments in payment systems law and practice that have occurred since the 9th edition, such as the 2018 amendments to Regulation CC, the Consumer Financial Protection Act of 2010, and amendments to regulations governing credit and debit cards and ACH transfers.
Take the change to Regulation CC earlier this year for instance, involving Warranties, Indemnities and Remote Deposit Capture.
This proposal mirrors the FASTT Checks Act's proposals for adjusting the dollar amounts used in the EFAA and Regulation CC to catch up and keep pace with inflation, treating Saturday as a "business day" for the purpose of calculating hold periods, and eliminating hold exceptions for "large deposits." However, unlike the FASTT Checks Act, this Note's proposal would also eliminate "large deposit" exceptions for all banks, not only those that use ECP and have total assets of $10 billion.
The Federal Reserve Board announced on October 12, 2005, amendments to appendix A of Regulation CC (Availability of Funds and Collection of Checks) that reflect the restructuring of the Federal Reserve's check-processing operations in the Fourth, Tenth, and Eleventh Districts.
On December 22, 2003 the Federal Reserve Board approved a proposed rule to amend Regulation CC and its commentary to implement the Check Clearing for the 21st Century Act (Check 21 Act).
Many Crestar associates are required to take courses in federal Regulation CC, the Funds Availability Act, and Regulation B, the Equal Credit Opportunity Act.
Electronic financial services are covered under Regulation CC's requirement to make deposited funds available for withdrawal in accordance with the regulation's availability schedule.
By passing legislation in 1988, known as Regulation CC,(6) Congress made detecting fraudulent checks even more difficult for financial institutions.
The Expedited Funds Availability Act (commonly referred to as Regulation CC), which limits the holding period financial institutions can place on deposits, has contributed to making check kiting a major cause of check fraud losses.
"Financial institutions' policies or practices that do not appropriately reconcile credit discrepancies within the prescribed time frames may raise Regulation CC concerns if such discrepancies leave customers without timely access to the correct amount of funds.
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