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Regulation
CC
Availability of Funds And Collection Of Checks
Appendix F to Part 229--Official Board Interpretations;
Preemption Determinations
Appendix F to Part 229--Official Board
Interpretations; Preemption Determinations
Uniform Commercial Code, Section 4-213(5)
Section 4-213(5) of the Uniform Commercial
Code (``U.C.C.'') provides that money deposited in a bank is available
for withdrawal as of right at the opening of business of the banking
day after deposit. Although the language ``deposited in a bank''
is unclear, arguably it is broader than the language ``made in
person to an employee of the depositary bank'', which conditions
the next-day availability of cash under Regulation CC (Sec. 229.10(a)(1)).
Under Regulation CC, deposits of cash that are not made in person
to an employee of the depositary bank must be made available by
the second business day after the banking day of deposit (Sec.
229.10(a)(2)). Therefore, this provision of the U.C.C. may call
for the availability of certain cash deposits in a shorter time
than provided in Regulation CC.
This provision of the U.C.C., however,
is subject to Section 4- 103(1), which provides, in part, that
``the effect of the provisions of this Article may be varied by
agreement * * *.'' (The Regulation CC funds availability requirements
may not be varied by agreement.) U.C.C. Section 4-213(5) supersedes
the Regulation CC provision in Sec. 229.10(a)(2), but a depositary
bank may not agree with its customer under section 4-103(1) of
the Code to extend availability beyond the time periods provided
in Sec. 229.10(a) of Regulation CC.
California
Background
The Board has been requested, in accordance
with Sec. 229.20(d) of Regulation CC (12 CFR part 229), to determine
whether the Expedited Funds Availability Act (the ``Act'') and
subpart B (and in connection therewith, subpart A) of Regulation
CC preempt the provisions of California law concerning availability
of funds. This preemption determination specifies those provisions
of the California funds availability law that supersede the Act
and Regulation CC. (See also the Board's preemption determination
regarding the Uniform Commercial Code, section 4-213(5), pertaining
to availability of cash deposits.)
California has four separate sets
of regulations establishing maximum availability schedules. The
regulations applicable to commercial banks and branches of foreign
banks located in California (Cal. Admin. Code tit. 10, Secs. 10.190401-10.190402)
were promulgated by the Superintendent of Banks. The regulations
applicable to savings banks and savings and loan associations
(Cal. Admin. Code tit. 10, Secs. 106.200- 106.202) were adopted
by the Savings and Loan Commissioner. The regulations applicable
to credit unions (Cal. Admin. Code tit. 10, section 901) and to
industrial loan companies (Cal. Admin. Code tit. 10, section 1101)
were adopted by the Commissioner of Corporations.
All the regulations were adopted pursuant
to California Financial Code section 866.5 and California Commercial
Code section 4213(4)(a), under which the appropriate state regulatory
agency for each depository institution must issue administrative
regulations to define a reasonable time for permitting customers
to draw on items received for deposit in the customer's account.
California Financial Code section 867 also establishes availability
periods for funds deposited by cashier's check, certified check,
teller's check, or depository check under certain circumstances.
Finally, California Financial Code section 866.2 establishes disclosure
requirements.
The Board's determination with respect
to these California laws and regulations governing the funds availability
requirements applicable to depository institutions in California
are as follows.
Commercial Banks and Branches of Foreign Banks
Coverage
The California State Banking Department
regulations, which apply to California state commercial banks,
California national banks, and California branch offices of foreign
banks, provide that a depositary bank shall make funds deposited
into a deposit account available for withdrawal as provided in
Regulation CC with certain exceptions. The funds availability
schedules in Regulation CC apply only to accounts as defined in
Regulation CC, which generally consist of transaction accounts.
The California funds availability law and regulations apply to
accounts as defined by Regulation CC as well as savings accounts
(other than time accounts), as defined in the Board's Regulation
D (12 CFR 204.2(d)). (Note, however, that under Sec. 229.19(e)
of Regulation CC, Holds on other funds, the federal availability
schedules may apply to savings, time, and other accounts not defined
as accounts under Regulation CC in certain circumstances.)
Availability Schedules
Temporary schedule. Regulation CC provides
that, until September 1, 1990, nonlocal checks must be made available
for withdrawal by the seventh business day after the banking day
of deposit, except for certain nonlocal checks listed in appendix
B-1, which must be made available within a shorter time (by the
fifth business day following deposit for those California checks
listed). Under the temporary schedule in the California regulations,
a depositary bank with a four- digit routing symbol of 1210 (``1210
bank'') or of 1220 (``1220 bank'') that receives for deposit a
check drawn on a nonlocal, in-state commercial bank or foreign
bank branch 1 must make the funds available for withdrawal
by the fourth business day after the day of deposit. The California
regulations provide that 1210 and 1220 banks must make deposited
checks drawn on nonlocal in-state thrifts (defined as savings
and loan associations, savings banks, and credit unions) available
by the fifth business day after deposit. In addition, California
law provides that all other depositary banks must make deposited
checks drawn on a nonlocal in-state commercial bank or foreign
bank branch available by the fifth business day after deposit
and checks drawn on nonlocal in-state thrifts available by the
sixth business day after deposit. To the extent that these schedules
provide for shorter holds than Regulation CC and its appendix
B-1, the state schedules supersede the federal schedules.2
For example, the California four-day schedule that applies to
checks drawn on in-state nonlocal commercial banks or foreign
bank branches and deposited in a 1210 or 1220 bank would be shorter
than and would supersede the federal schedules.
1 The California
regulation uses the term paying bank when describing the institution
on which these checks are drawn, but does not define paying bank
or bank. Regulation CC's definitions of paying bank and bank include
savings institutions and credit unions as well as commercial banks
and branches of foreign banks. However, because the California
regulation makes separate provisions for checks drawn on savings
institutions and credit unions, the Board concludes that the term
paying bank, as used in the California regulation, includes only
commercial banks and foreign bank branches. \2\ Appendix B-1 of
Regulation CC provides that the federal schedules will be the
same as the California schedules (5 days) in the following cases:
A depositary bank bearing a 1210 routing number receiving for
deposit checks bearing a 3220 or a 3223 routing number, and a
depositary bank bearing a 1220 routing number receiving for deposit
checks bearing a 3210 routing number. In the cases where federal
and state law are the same, the state law is not preempted by,
nor does it supersede, the federal law.
The California regulations do not specify
whether the state schedules apply to deposits of checks at nonproprietary
ATMs. Under the temporary schedules in Regulation CC, deposits
at nonproprietary ATMs must be made available for withdrawal by
the seventh business day following deposit. To the extent that
the California schedules provide for shorter availability for
deposits at nonproprietary ATMs, they would supersede the temporary
schedule in Regulation CC for deposits at nonproprietary ATMs
specified in Sec. 229.11(d).
Permanent schedule. Regulation CC provides
that, as of September 1, 1990, nonlocal checks must be made available
for withdrawal by the fifth business day after the banking day
of deposit. Under the permanent schedule in the California regulations,
a depositary bank with a four- digit routing symbol of 1210 or
of 1220 that receives for deposit a check drawn on a nonlocal,
in-state commercial bank or foreign bank branch must make the
funds available for withdrawal by the fourth business day after
the day of deposit. These state schedules provide for shorter
hold periods than and thus supersede the federal schedules.
Second-day availability. Section 867
of the California Financial Code requires depository institutions
to make funds deposited by cashier's check, teller's check, certified
check, or depository check available for withdrawal on the second
business day following deposit, if certain conditions are met.
The Regulation CC next-day availability requirement for cashier's
checks and teller's checks applies only to those checks issued
to a customer of the bank or acquired from the bank for remittance
purposes. To the extent that the state second-day availability
requirement applies to cashier's and teller's checks issued to
a non-customer of the bank for other than remittance purposes,
the state two-day requirement supersedes the federal local and
nonlocal schedules.
Availability at start of day. The California
regulations do not specify when during the day funds must be made
available for withdrawal. Section 229.19(b) of Regulation CC provides
that funds must be made available at the start of the business
day. In those cases where federal and state law provide for holds
for the same number of days, to the extent that the California
regulations allow funds to be made available later in the day
than does Regulation CC, the federal law would preempt state law.
Exceptions to the availability schedules.
Under the state preemption standards of Regulation CC (see Sec.
229.20(c) and accompanying Commentary), for deposits subject to
the state availability schedules, a state exception may be used
to extend the state availability schedule up to the federal availability
schedule. Once the deposit is held up to the federal availability
schedule limit under a state exception, the depositary bank may
further extend the hold under any federal exception that can be
applied to the deposit. If no state exceptions exist, then no
exceptions holds may be placed on deposits covered by state schedules.
Thus, to the extent that California law provides for exceptions
to the California schedules that supersede Regulation CC, those
exceptions may be applied in order to extend the state availability
schedules up to the federal availability schedules or such later
time as is permitted by a federal exception.
Disclosures
California law (Cal. Fin. Code
Sec. 866.2) requires depository institutions to provide written
disclosures of their general availability policies to potential
customers prior to opening any deposit account. The law also requires
that preprinted deposit slips and ATM deposit envelopes contain
a conspicuous summary of the general policy. Finally, the law
requires depository institutions to provide specific notice of
the time the customer may withdraw funds deposited by check or
similar instrument into a deposit account if the funds are not
available for immediate withdrawal.
Section 229.20(c)(2) of Regulation CC
provides that inconsistency may exist when a state law provides
for disclosures or notices concerning funds availability relating
to accounts. California Financial Code Sec. 866.2 requires disclosures
that differ from those required by Regulation CC and, therefore,
is preempted to the extent that it applies to accounts as defined
in Regulation CC. The state law continues to apply to savings
accounts and other accounts not governed by Regulation CC disclosure
requirements.
Savings Institutions
Coverage
The California Department of Savings
and Loan regulations, which apply to California savings and loan
associations and California savings banks, provide that a depositary
bank shall make funds deposited into a transaction or non-transaction
account available for withdrawal as provided in Regulation CC.
The funds availability schedules in Regulation CC apply only to
accounts as defined in Regulation CC, which generally consist
of transaction accounts. The California funds availability law
and regulations apply to accounts as defined by Regulation CC
as well as savings accounts as defined in the Board's Regulation
D (12 CFR 204.2(d)). (Note, however, that under Sec. 229.19(e)
of Regulation CC, Holds on other funds, the federal availability
schedules may apply to savings, time, and other accounts not defined
as accounts under Regulation CC in certain circumstances.)
Availability Schedules
Second-day availability. Section 867
of the California Financial Code requires depository institutions
to make funds deposited by cashier's check, teller's check, certified
check, or depository check available for withdrawal on the second
business day following deposit, if certain conditions are met.
The Regulation CC next-day availability requirement for cashier's
checks and teller's checks applies only to those checks issued
to a customer of the bank or acquired from the bank for remittance
purposes. To the extent that the state second-day availability
requirement applies to cashier's and teller's checks issued to
a non-customer of the bank for other than remittance purposes,
the state two-day requirement supersedes the federal local and
nonlocal schedules.
Temporary and permanent schedules. Other
than the provisions of Section 867 discussed above, California
law incorporates the Regulation CC availability requirements with
respect to deposits to accounts covered by Regulation CC. Because
the state requirements are consistent with the federal requirements,
the California regulation is not preempted by, nor does it supersede,
the federal law.
Disclosures
California law (Cal. Fin. Code
Sec. 866.2) requires depository institutions to provide written
disclosures of their general availability policies to potential
customers prior to opening any deposit account. The law also requires
that preprinted deposit slips and ATM deposit envelopes contain
a conspicuous summary of the general policy. Finally, the law
requires depository institutions to provide specific notice of
the time the customer may withdraw funds deposited by check or
similar instrument into a deposit account if the funds are not
available for immediate withdrawal. Section 229.20(c)(2) of Regulation
CC provides that inconsistency may exist when a state law provides
for disclosures or notices concerning funds availability relating
to accounts. To the extent that California Financial Code Sec.
866.2 requires disclosures that differ from those required by
Regulation CC and apply to accounts as defined in Regulation CC
(generally, transaction accounts), the California law is preempted
by Regulation CC.
The Department of Savings and Loan regulations
provide that for those non-transaction accounts covered by state
law but not by federal law, disclosures in accordance with Regulation
CC will be deemed to comply with the state law disclosure requirements.
To the extent that the Department of Savings and Loan regulations
permit reliance on Regulation CC disclosures for transaction accounts
and to the extent the state regulations survive the preemption
of California Financial Code Sec. 866.2, they are not preempted
by, nor do they supersede, the federal law. The state law continues
to apply to savings accounts and other non-transaction accounts
not governed by Regulation CC disclosure requirements.
Credit Unions and Industrial Loan Companies
Each credit union and federally-insured
industrial loan company that maintains an office in California
for the acceptance of deposits must make funds deposited by check
available for withdrawal in accordance with the following table:
-------------------------------------------------------------------
Availability -------------------------------- Industrial
Loan Credit Union Company -------------------------------------------------------------------
$100 or less checks; U.S. Treasury 1st day.......... 1st day checks;
state/local gov't checks. On us checks; cashier's/certifies/ 2nd
day.......... 2nd day teller's/depository checks. In-state checks...................
6th day.......... 6th day out-of-state checks............... 10th
day......... 12th day -------------------------------------------------------------------
Note: These time periods are stated in terms of availability for
withdrawal not later than the Xth business day following the banking
day of deposit to facilitate comparison with Regulation CC. State
regulations are stated in terms of availability at the start of
the business day subsequent to the number of days specified in
the regulation. Coverage
The California law and regulations
govern the availability of funds to ``demand deposits, negotiable
order of withdrawal draft accounts, savings deposits subject to
automatic transfers, share draft accounts, and all savings deposits
and share accounts, other than time deposits.'' (California Financial
Code section 886(b)) The federal preemption of state funds availability
laws only applies to accounts subject to Regulation CC, which
generally includes transaction accounts. Thus, the California
funds availability regulations continue to apply to deposits in
savings and other accounts (such as accounts in which the account-
holder is another bank) that are no accounts under Regulation
CC. (Note, however, that under Sec. 229.19(e) of Regulation CC,
Holds on other funds, the federal availability schedules may apply
to savings, time, and other accounts not defined as accounts under
Regulation CC in certain circumstances.)
The California law applies to any Item
(California Financial Code section 866.5 and California Commercial
Code section 4213(4)(a)). The California Commercial Code defines
item to mean any instrument for the payment of money even though
it is not negotiable * * * (Cal. Com. Code section 4104(g)). This
term is broader in scope than the definition of check in the Act
and Regulation CC. The Commissioner's regulations, however, define
the term item to include checks, negotiable orders of withdrawal,
share drafts, warrants, and money orders. As limited by the state
regulations, the state law applies only to instruments that are
also checks as defined in Sec. 229.2(k) of Regulation CC.
Availability Schedules
Temporary schedule. The California regulations
provide that in-state nonlocal checks must be made available for
withdrawal not later than the sixth business day following deposit.
This time period is shorter than the seventh business day availability
required for nonlocal checks under Sec. 229.11(c) of Regulation
CC, although it is not shorter than the schedules for nonlocal
checks set forth in Sec. 229.11(c)(2) and appendix B-1 of Regulation
CC. Thus, the state scheduled for in- state nonlocal checks supersede
the federal schedule to the extent that they apply to an item
payable by a California institution that is defined as a nonlocal
check under Regulation CC, and is not subject to reduced schedules
under Sec. 229.11(c)(2) and appendix B-1.
Under the California regulations, credit
unions and industrial loan companies must provide next-day availability
to first-indorsed items issued by any federally-insured institution.
This regulatory requirement, however, has been superseded by section
867 of the California Financial Code, which requires depository
institutions to make funds deposited by cashier's check, teller's
check, certified checks, or depository check available for withdrawal
on the second business day following deposit, if certain conditions
are met. This requirement became effective January 1, 1988.
The Regulation CC next-day availability
requirement for cashier's checks and teller's checks applies only
to those checks issued for remittance purposes. To the extent
that the state second business day availability requirement applies
to cashier's and teller's checks issued for other than remittance
purposes, the state two-day requirement supersedes the federal
local and nonlocal schedules.
The California regulations do not specify
whether they apply to deposits of checks at nonproprietary ATMs.
Under the temporary schedule in Regulation CC, deposits at nonproprietary
ATMs must be made available for withdrawal at the start of the
seventh business day after deposit. To the extent that the California
schedules provide for shorter availability for deposits at nonproprietary
ATMs, they would supersede the temporary schedule in Regulation
CC for deposits at nonproprietary ATMs specified in Sec. 229.11(d).
Permanent schedule. Under the California
regulations, credit unions and industrial loan companies must
provide next-day availability to first-indorsed items issued by
any federally-insured institution. This regulatory requirement,
however, has been superseded by section 867 of the California
Financial Code, which requires depository institutions to make
funds deposited by cashier's check, teller's check, certified
check, or depository check available for withdrawal on the second
business day following deposit, if certain conditions are met.
This requirement became effective January 1, 1988.
The Regulation CC next-day availability
requirement for cashier's and teller's checks applies only to
those checks issued for remittance purposes. To the extent that
the state second business day availability requirement applies
to cashier's and teller's checks issued for other than remittance
purposes, the state two-day requirement supersedes the federal
local and nonlocal schedules.
Next-day availability. Credit unions
and industrial loan companies in California are required to give
next-day availability to items drawn by the State of California
or any of its departments, agencies, or political subdivisions.
California law supersedes the fedeal law in that the state law
does not condition next-day availability on receipt at a staffed
teller station or use of a special deposit slip.
California credit unions and industrial
loan companies must provide second business day availability to
checks drawn on the depositary bank. Regulation CC requires next-day
availability for checks deposited in a branch of the depositary
bank and drawn on the same or another branch of the same bank
if both branches are located in the same state or the same check
processing region. Thus, generally, the Regulation CC rule for
availability of on us checks preempts the California regulations.
To the extent, however, that an on us check is (1) drawn on an
out-of-state branch of the depositary bank that is not in the
same check processing region as the branch in which it was deposited,
or (2) deposited at an off-premises ATM or another facility of
the depositary bank that is not considered a branch under federal
law, the state regulation supersedes the Regulation CC availability
requirements.
Exceptions to the availability schedules.
California law provides exceptions to the state availability schedules
for large deposits, new accounts, repeated overdrafters, doubtful
collectibility, foreign items, and emergency conditions. In all
cases where the federal availability schedule preempts the state
schedule, only the federal exceptions will apply. For deposits
that are covered by the state availability schedule (e.g., in-state
nonlocal checks under the temporary schedule; cashier's or teller's
checks that are not deposited with a special deposit slip or at
a staff teller station), the state exceptions may be used to extend
the state availability schedule up to the federal availability
schedule. Once the deposit is held up to the federal availability
limit under a state exception, the depositary bank may further
extend the hold under any federal exception that can be applied
to the deposit. Any time a depositary bank invokes an exception
to extend a hold beyond the time periods otherwise permitted by
law, it must give notice of the extended hold to its customer
in accordance with Sec. 229.13(g) of Regulation CC.
Business day/banking day. The definitions
of business day and banking day in the California regulations
are preempted by the Regulation CC definition of those terms.
Thus, for determining the permissible hold under the California
schedules that supersede the Regulation CC schedule, deposits
are considered made on the specified number of business days following
the banking day of deposit.
Disclosures
California law (Cal. Fin. Code section
866.2) requires depository institutions to provide written disclosures
of their general availability policies to potential customers
prior to opening any deposit account. The law also requires that
preprinted deposit slips and ATM deposit envelopes contain a conspicuous
summary of the general policy. Finally, the law requires a depository
institution to provide specific notice of the time the customer
may withdraw funds deposited by check or similar instrument into
a deposit account if the funds are not available for immediate
withdrawal.
Section 229.20(c)(2) of Regulation CC
provides that inconsistency may exist when a state law provides
for disclosures or notices concerning funds availability relating
to accounts. California Financial Code section 866.2 requires
disclosures that differ from those required by Regulation CC,
and therefore is preempted to the extent that it applies to accounts
as defined in Regulation CC. The state law continues to apply
to savings accounts and other accounts not governed by Regulation
CC disclosure requirements.
Connecticut
Background
The Board has been requested, in accordance
with Sec. 229.20(d) of Regulation CC (12 CFR part 229), to determine
whether the Expedited Funds Availability Act (the ``Act'') and
subpart B (and in connection therewith, subpart A) of Regulation
CC, preempt provisions of Connecticut law relating to the availability
of funds. This preemption determination specifies those provisions
of the Connecticut funds availability law that supersede the Act
and Regulation CC. (See also the Board's preemption determination
regarding the Uniform Commercial Code, section 4-213(5), pertaining
to availability of cash deposits.)
In 1987, Connecticut amended its statute
governing funds availability (Conn. Gen. Stat. section 36-9v),
which requires Connecticut depository institutions to make funds
deposited in a checking, time, interest, or savings account available
for withdrawal with specified periods.
Generally, the Connecticut statute, as
amended, provides that items deposited in a checking, time, interest,
or savings account at a depository institution must be available
for withdrawal in accordance with the following table:
Availability
On us checks.......................... 2nd day
In-state checks....................... 4th day
Out-of-state checks................... 6th day
Exceptions to the schedules are provided
for items received for deposit for the purpose of opening an account
and for items that the depositary bank has reason to believe will
not clear. The Connecticut statute also requires availability
policy disclosures to depositors in the form of written notices
and notices posted conspicuously at each branch.
Coverage
The Connecticut statute governs the
availability of funds deposited in savings and time accounts,
as well as accounts as defined in Sec. 229.2(a) of Regulation
CC. The federal preemption of state funds availability requirements
only applies to accounts subject to Regulation CC, which generally
consist of trasaction accounts. Regulation CC does not affect
the Connecticut statute to the extent that the state law applies
to deposits in savings and other accounts (including transaction
accounts where the account holder is a bank, foreign bank or the
U.S. Treasury) that are not accounts under Regulation CC. (Note,
however, that under Sec. 229.19(e) of Regulation CC, Holds on
other funds, the federal availability schedules may apply to savings,
time, and other accounts not defined as accounts under Regulation
CC, in certain circumstances.)
The Connecticut statute applies to items
deposited in accounts. This term encompasses instruments that
are not defined as checks in Regulation CC (Sec. 229.2(k)), such
as nonnegotiable instruments, and are therefore not subject to
Regulation CC's provisions governing funds availability. Those
items that are subject to Connecticut law but are not subject
to Regulation CC will continue to be covered by the state availability
schedules and exceptions.
Availability Schedules
Temporary schedule. Connecticut law
provides that certain checks that are nonlocal under Regulation
CC must be available in a shorter time (sixth business day after
deposit for checks payable by depository institutions not located
in Connecticut) than under the federal regulation (seventh business
day after deposit under the temporary schedule for nonlocal checks).
Accordingly, the Connecticut law supersedes Regulation CC with
respect to nonlocal checks (other than checks covered by appendix
B-1) deposited in accounts until the federal permanent availability
schedules take effect on September 1, 1990.
The Connecticut statute does not specify
whether it applies to deposits of checks at nonproprietary ATMs.
Under the temporary schedule in Regulation CC, deposits at nonproprietary
ATMs must be made available for withdrawal at the start of the
seventh business day after deposit. To the extent that the Connecticut
schedules provide for shorter availability for deposits at nonproprietary
ATMs, they would supersede the temporary schedule in Regulation
CC for deposits at nonproprietary ATMs specified in Sec. 229.11(d).
Exceptions to the availability schedule.
The Connecticut law provides exceptions for items received for
deposit for the purpose of opening new accounts and for items
that the depositary bank has reason to believe will not clear.
In all cases where the federal availability schedule preempts
the state schedule, only the federal exceptions will apply. For
deposits that are covered by the state availability schedule (e.g.,
nonlocal out-of-state checks under the temporary schedule), the
state exceptions may be used to extend the state availability
schedule (of six business days) to meet the federal availability
schedule (of seven business days). Once the deposit is held up
to the federal availability schedule limit under a state exception,
the depositary bank may further extend the hold under any federal
exception that can be applied to the deposit. Any time a depositary
bank invokes an exception to extend a hold beyond the time periods
otherwise permitted by law, it must give notice of the extended
hold to its customer, in accordance with Sec. 229.13(g) of Regulation
CC.
Disclosures
The Connecticut statute (Conn. Gen.
Stat. Section 36-9v(b)) requires written notice to depositors
of an institution's check hold policy and requires a notice of
the policy to be posted in each branch.
Regulation CC preempts state disclosure
requirements concerning funds availability that relate to accounts
that are inconsistent with the federal requirements. The state
requriements are different from, and therefore inconsistent with,
the federal disclosure rules. (Sec. 229.20(c)(2)). Thus, the Connecticut
statute is preempted by Regulation CC to the extent that these
disclosure provisions apply to accounts as defined by Regulation
CC. The Connecticut disclosure rules would continue to apply to
accounts, such as savings and time accounts, not governed by the
Regulation CC disclosure requirements.
Illinois
The Board has been requested, in accordance
with Sec. 229.20(d) of Regulation CC (12 CFR part 229), to determine
whether the Expedited Funds Availability Act and subpart B, and,
in connection therewith, subpart A, of Regulation CC, preempt
provisions of Illinois law relating to the availability of funds.
Section 4-213(5) of the Uniform Commercial Code as adopted in
Illinois (Illinois Revised Statutes Chapter 26, paragraph 4-213(5),
enacted July 26, 1988) provides that:
Time periods after which deposits must
be available for withdrawal shall be determined by the provisions
of the federal Expedited Funds Availability Act (Title VI of the
Competitive Equality Banking Act of 1987) and the regulations
promulgated by the Federal Reserve Board for the implementation
of that Act.
Section 4-213(5) of the Illinois law
does not supersede Regulation CC; and, because this provision
of Illinois law does not permit funds to be made available for
withdrawal in a longer period of time than required under the
Act and Regulation, it is not preempted by Regulation CC.
Maine
Background
The Board has been requested, in accordance
with Sec. 229.20(d) of Regulation CC (12 CFR part 229), to determine
whether the Expedited Funds Availability Act (the ``Act'') and
subpart B (and in connection therewith, subpart A) of Regulation
CC, preempt the provisions of Maine law concerning the availability
of funds. This preemption determination addresses the relation
of the Act and Regulation CC to the Maine funds availability law.
(See also the Board's preemption determination regarding the Uniform
Commercial Code, section 4-213(5), pertaining to availability
of cash deposits.)
In 1985, Maine adopted a statute governing
funds availability (Title 9-B MRSA section 241(5)), which requires
Maine financial institutions to make funds deposited in a transaction
account, savings account, or time account available for withdrawal
within a reasonable period. The Maine statute gives the Superintendent
of Banking for the State of Maine the authority to promulgate
rules setting forth time limitations and disclosure requirements
governing funds availability. The Superintendent of Banking issued
regulations implementing the Maine funds availability statute,
effective July 1, 1987 (Regulation 18(IV)), and adopted amendments
to this regulation, effective September 1, 1988. Under the revised
regulation, funds deposited to any deposit account in a Maine
financial institution must be made available for withdrawal in
accordance with the Act and Regulation CC (Regulation 18- IV(A)(1)).
The state regulation provides that an institution's funds availability
policies for accounts subject to Regulation CC be disclosed in
a manner consistent with the Regulation CC requirements. Funds
availability policies for accounts not subject to Regulation CC
must be disclosed in accordance with the state regulation (Regulation
18- IV(A)(2)).
The Maine law and regulation govern the
availability of funds to any deposit account, as defined in the
Board's Regulation D (12 CFR 204.2(a)). This coverage is broader
than the accounts covered in Regulation CC. The Maine law continues
to apply to all deposit accounts, including those that are not
accounts under Regulation CC. (Note, however, that under Sec.
229.19(e) of Regulation CC, Holds on other funds, the federal
availability schedules may apply to savings, time, and other accounts
not defined as accounts under Regulation CC, in certain circumstances.)
Availability Schedules and Disclosures
The Maine regulation incorporates the
Regulation CC availability and disclosure requirements with respect
to deposits to accounts covered by Regulation CC. Because the
state requirements are consistent with the federal requirements,
the Maine regulation is not preempted by, nor does it supersede,
the federal law.
Massachusetts
Background
The Board has been requested, in accordance
with Sec. 229.20(d) of Regulation CC (12 CFR part 229), to determine
whether the Expedited Funds Availability Act (the ``Act'') and
subpart B (and in connection therewith, subpart A) of Regulation
CC, preempt provisions of Massachusetts law relating to the availability
of funds. This preemption determination addresses the relationship
of the Act and Regulation CC to the Massachusetts funds availability
law. (See also the Board's preemption determination regarding
the Uniform Commercial Code, section 4-213(5), pertaining to availability
of cash deposits.)
In 1988, Massachusetts amended its statute
governing funds availability (Mass. Gen. L. ch. 167D, section
35), to require Massachusetts banking institutions to make funds
available for withdrawal and disclose their availability policies
in accordance with the Act and Regulation CC. The Massachusetts
law, however, provides that ``local originating depository institution''
is to be defined as any originating depository institution located
in the Commonwealth.
Coverage
The Massachusetts statute governs the
availability of funds deposited in ``any demand deposit, negotiable
order of withdrawal account, savings deposit, share account or
other asset account.'' Regulation CC applies only to accounts
as defined in Sec. 229.2(a). Regulation CC does not affect the
Massachusetts statute to the extent that the state law applies
to deposits in savings and other accounts (including transaction
accounts where the account holder is a bank, foreign bank, or
the U.S. Treasury) that are not accounts under Regulation CC.
(Note, however, that under Sec. 229.19(e) of Regulation CC, Holds
on other funds, the federal availability schedules may apply to
savings, time, and other accounts not defined as accounts under
Regulation CC, in certain circumstances.)
Availability Schedules
The Massachusetts definition of local
originating depository institution (local paying bank in Regulation
CC terminology) requires that in-state checks that are nonlocal
checks under Regulation CC be made available in accordance with
the Regulation CC local schedule. The Massachusetts law supersedes
Regulation CC under the temporary and permanent schedule with
respect to nonlocal checks payable by banks located in Massachusetts
and deposited into accounts. Regulation CC preempts the Massachusetts
law, however, to the extent the state law does not define banks
located outside of Massachusetts, but in the same check processing
region as the paying bank, as local originating depository institutions.
Disclosures
The Massachusetts regulation incorporates
the Regulation CC disclosure requirements with respect to both
accounts covered by Regulation CC and savings and other accounts
not governed by the federal regulation. Because the state requirements
are consistent with the federal requirements, the Massachusetts
regulation is not preempted by, nor does it supersede, the federal
law. The Massachusetts disclosure rules would continue to apply
to accounts not governed by the Regulation CC disclosure requirements.
New Jersey
Background
The Board has been requested, in accordance
with Sec. 229.20(d) of Regulation CC (12 CFR part 229), to determine
whether the Expedited Funds Availability Act (the ``Act'') and
subpart B (and in connection therewith, subpart A) of Regulation
CC preempt the provisions of New Jersey law concerning disclosure
of a bank's funds availability policy. (See also the Board's preemption
determination regarding the Uniform Commercial Code, section 4-213(5),
pertaining to availability of cash deposits.)
New Jersey does not have a law or regulation
establishing the maximum time periods within which funds deposited
by check or electronic payment must be made available for withdrawal.
New Jersey does, however, have regulations concerning the disclosure
of a banking institution's availability policy (N.J.A.C. 3:1-15.1
et seq.).
Disclosures
New Jersey law requires every banking
institution (defined as any state or federally chartered commercial
bank, savings bank, or savings and loan association) to provide
written disclosure to all holders of and applicants for deposit
accounts which describes the institution's funds availability
policy. Institutions must also disclose to their customers any
significant changes to their availability policy.
Regulation CC preempts state disclosure
requirements concerning funds availability that relates to accounts
that are inconsistent with the federal requirements. The state
requirements are different from, and therefore inconsistent with,
the federal disclosure rules. (Sec. 229.20(c)(2)). Thus, the New
Jersey statute (N.J.A.C. sections 3:1-15.1 et seq.) is preempted
by Regulation CC to the extent that these disclosure provisions
apply to accounts as defined by Regulation CC. The New Jersey
disclosure rules would continue to apply to other deposit accounts,
as defined by New Jersey law, including money market accounts
and savings accounts established by a natural person for personal
or family purposes, which are not governed by the Regulation CC
disclosure requirements.
New York
Background
The Board has been requested, in accordance
with Sec. 229.20(d) of Regulation CC (12 CFR part 229), to determine
whether the Expedited Funds Availability Act (the ``Act'') and
subpart B (and in connection therewith, subpart A) of Regulation
CC, preempt the provisions of New York law concerning the availability
of funds. This preemption determination addresses the relation
of the Act and Regulation CC to the New York funds availability
law. (See also the Board's preemption determination regarding
the Uniform Commercial Code, section 4-213(5), pertaining to availability
of cash deposits.)
In 1983, the New York State Banking Department,
pursuant to section 14-d of the New York Banking law, issued regulations
requiring that funds deposited in an account be made available
for withdrawal within specified time periods, and provided certain
exceptions to those availability schedules. Part 34 of the New
York State Banking Department's General Regulations established
time frames within which commercial banks, trust companies, and
branches of foreign banks (banks); and savings banks, savings
and loan associations, and credit unions (savings institutions)
must make funds deposited in customer accounts available for withdrawal.
The Banking Department amended part 34,
effective September 1, 1988, generally to exclude accounts covered
by Regulation CC from the scope of the state regulation. Part
34.4 (a)(2) and (b)(2) of the revised New York rules, however,
continue to apply to checks deposited to accounts, as defined
in Regulation CC. These provisions require that the proceeds of
nonlocal checks payable by a New York institution be made available
for withdrawal not later than the start of the fourth business
day following deposit, if deposited in a bank, or the fifth business
day following deposit, if deposited in a savings institution.
The revised regulation also provides that, with respect to savings
accounts and time deposits, New York institutions could elect
to comply with either the state or federal availability and disclosure
requirements.
This preemption determination supersedes
the determination issued by the Board on August 18, 1988 (53 FR
32357 (August 24, 1988)).
Coverage
The New York law and regulation govern
the availability of funds in savings accounts and time deposits,
as well as accounts as defined in Sec. 229.2(a) of Regulation
CC. The New York law continues to apply to deposits to savings
accounts and time deposits that are not accounts under Regulation
CC. (Note, however, that under Sec. 229.19(e) of Regulation CC,
Hold on other funds, the federal availability schedules may apply
to savings, time, and other accounts not defined as accounts under
Regulation CC, in certain circumstances.)
The New York law and regulation apply
to items deposited to accounts. Part 34.3(e) defines item as a
check, negotiable order of withdrawal or money order deposited
into an account. The Board interprets the definition of item in
New York law to be consistent with the definition of check in
Regulation CC (Sec. 229.2(k)).
Availability Schedules
The provisions of New York law governing
the availability of in- state nonlocal items provide for shorter
hold than is provided under Regulation CC, and supersede that
federal availability requirements. With the exception of these
provisions, the New York regulation does not apply to deposits
to accounts covered by Regulation CC.
Temporary schedule. The time periods
for the availability of in- state nonlocal checks, contained in
part 34.4 (a)(2) and (b)(2), are shorter that the seventh business
day availability required for nonlocal checks under Sec. 229.11(c)
of Regulation CC, although they are not necessarily shorter than
the schedules for nonlocal checks set forth in Sec. 229.11(c)(2)
and appendix B-1 of Regulation CC. Thus, these state schedules
supersede the federal schedule to the extent that they apply to
an item payable by a New York bank or savings institution that
is defined as a nonlocal checks under Regulation CC and the applicable
state schedule is less than the applicable schedule specified
in Sec. 229.11(c) and appendix B-1.
Permanent schedule. The New York schedule
for banks supersedes the Regulation CC requirement in the permanent
schedule, effective September 1, 1990, that nonlocal checks be
made available for withdrawal by the start of the fifth business
day following deposit, to the extent that the in-state checks
are defined as nonlocal under Regulation CC, and the Regulation
CC schedule for nonlocal checks is not shortened under Sec. 229.12(c)(2)
and appendix B-2 of Regulation CC. In addition, the New York schedule
for savings institutions supersedes the Regulation CC time period
adjustment for withdrawal by cash or similar means in the permanent
schedule, to the extent that the in-state checks are defined as
nonlocal under Regulation CC, and the Regulation CC schedule for
nonlocal checks is not shortened under Sec. 229.12(c)(2) and appendix
B- 2.
Exceptions to the availability schedules.
New York law provides exceptions to the state availability schedules
for large deposits, new accounts, repeated overdrafters, doubtful
collectibility, foreign items, and emergency conditions (part
34.4). The state exceptions apply only with respect to deposits
of in-state nonlocal checks that are subject to the state availability
schedule. For these deposits, the depositary bank may invoke a
state exception and place a hold on the deposit up to the federal
availability schedule limit for that type of deposit. Once the
federal availability schedule limit is reached, the depositary
bank may further extend the hold under any of the federal exceptions
that apply to that deposit. Any time a depositary bank invokes
an exception to extend a hold beyond the time periods otherwise
permitted by law, it must give notice of the extended hold to
its customer in accordance with Sec. 229.12(g) of Regulation CC.
Disclosures
The revised New York regulation does
not contain funds availability disclosure requirements applicable
to accounts subject to Regulation CC.
Rhode Island
Background
The Board has been requested, in accordance
with Sec. 229.20(d) of Regulation CC (12 CFR part 229), to determine
whether the Expedited Funds Availability Act (the ``Act'') and
subpart B (and in connection therewith, subpart A) of Regulation
CC, supersede provisions of Rhode Island law relating to the availability
of funds. This preemption determination specifies those provisions
in the Rhode Island funds availability law that supersede the
Act and Regulation CC. (See also the Board's preemption determination
regarding the Uniform Commercial Code, section 4-213(5), pertaining
to availability of cash deposits.)
In 1986, Rhode Island adopted a statute
governing funds availability (R.I. Gen. Laws tit. 6A, sections
4-601 through 4-608), which requires Rhode Island depository institutions
to make checks deposited in a personal transaction account available
for withdrawal within certain specific periods. Commercial banks
and thrift institutions (mutual savings banks, savings banks,
savings and loan institutions and credit unions) must make funds
available for withdrawal in accordance with the following table:
------------------------------------------------------------
Commercial Thrift
Banks institutions
Treasury checks, Rhode Island 2nd............. 2nd
Government checks, first-indorsed.
In-state cashier's checks less 2nd............. 2nd
than $2,500.
On-us checks...................... 2nd............. 3rd
In-state clearinghouse checks..... 3rd............. 4th
In-state nonclearinghouse checks.. 5th............. 6th
1st or 2nd Federal Reserve 7th............. 7th
District checks (out-of-state).
Other checks...................... 9th............. 10th
------------------------------------------------------------
Note: These time periods are stated in terms of availability for
withdrawal not later than the Xth business day following the banking
day of deposit to facilitate comparison with Regulation CC. State
regulations are stated in terms of availability at the start of the
business day subsequent to the number of days specified in the
regulation.
The Rhode Island statute also provides restrictions and exceptions
to the schedules and requires institutions to make certain disclosures
to their customers.
Coverage
The Rhode Island statute governing the
availability of funds deposited in personal transaction accounts,
a term not defined in the statute. The federal law would continue
to apply to accounts, as defined in Sec. 229.2(a), that are not
personal transaction accounts.
The Rhode Island statute applies to items,
defined as checks, negotiable orders of withdrawal, or money orders.
The Board interprets the definition of item to be consistent with
the definition of check in Regulation CC (Sec. 299.2(k)).
Availability Schedules
Temporary schedule. Rhode Island law
requires availability for certain checks in the same time as does
Regulation CC. Thus, in these instances, the federal law does
not preempt the state law. Rhode Island law requires commercial
banks (but not thrift institutions) to make checks payable by
a depositary institution that uses the same in-state clearing
facility as the depositary bank available for withdrawal on the
third business day following the day of the deposit. This is the
same time period contained in Regulation CC for local checks payable
by a bank that is a member of the same local clearinghouse as
the depositary bank. (The Board views the definition of the same
in-state clearing facility as having the same meaning as the term
the same check clearinghouse association in the federal law's
provision that allows banks to limit the customer's ability to
withdraw cash on the third business day if the local check being
deposited is payable by a bank that is not a member of the same
local clearinghouse as the depositary bank.) Since the Rhode Island
law and the federal law both require the funds to be made available
no later than the third business day, the state law is not preempted
by the federal law.
The Rhode Island law also requires commercial
banks and savings institutions to make checks payable by a depository
institution located in the First or Second Federal Reserve District
(outside of Rhode Island) available on the seventh business day
following deposit. To the extent that this provision applies to
checks payable by institutions located outside the Boston check
processing region, it provides for availability in the same time
as required for nonlocal checks under the temporary federal schedule,
and thus is not preempted by the federal law.
The Rhode Island statute does not specify
whether it applies to deposits of checks at nonproprietary ATMs.
Under the temporary schedule in Regulation CC, deposits at nonproprietary
ATMs must be made available for withdrawal at the opening of the
seventh business day after deposit. To the extent that the Rhode
Island schedules provide for shorter availability for deposits
at nonproprietary ATMs, they would supersede the temporary schedule.
Exceptions to the availability schedules.
The Rhode Island law contains exceptions for reason to doubt collectibility
or ability of the depositor to reimburse the depositary bank,
for new accounts, for large checks, and for foreign checks. In
all cases where the federal availability schedule preempts the
state schedule, only the federal exceptions will apply. For deposits
that are covered by the state availability schedule, the state
exceptions may be used to extend the state availability schedule
to meet the federal availability schedule. Once the deposit is
held up to the federal availability schedule limit under a state
exception, the depositary bank may further extend the hold under
any federal exception that can be applied to the deposit. Thus,
if the state and federal availability schedules are the same for
a particular deposit, both a state and a federal exception must
be applicable to that deposit in order to extend the hold beyond
the schedule. Any time a depositary bank invokes an exception
to extend a hold beyond the time periods otherwise permitted by
law, it must give notice of the extended hold to its customer,
in accordance with Sec. 229.13(g) of Regulation CC.
Business day/banking day. The Rhode Island
statute defines business day as excluding Saturday, Sunday and
legal holidays. This definition is preempted by the Regulation
CC definitions of business day and banking day. Thus, for determining
the permissible hold under the Rhode Island schedules that supersede
the Regulation CC schedule, deposits are considered made on the
specified number of business days following the banking day of
deposit.
Disclosures
The Rhode Island statute requires written
notice to depositors of an institution's check hold policy and
requires a notice on deposit slips. Regulation CC preempts state
disclosure requirements concerning funds availability that relate
to accounts that are inconsistent with the federal requirements.
The state reuirements are different from, and therefore inconsistent
with, the federal rules. (Sec. 229.20(c)(2)) Thus, Regulation
CC preempts the Rhode Island disclosure requirements concerning
funds availability.
Wisconsin
Background
The Board has been requested, in accordance
with Sec. 229.20(d) of Regulation CC (12 CFR part 229), to determine
whether the Expedited Funds Availability Act (the Act) and subpart
B (and in connection therewith, subpart A) of Regulation CC preempt
the provisions of Wisconsin law concerning availability of funds.
This preemption determination specifies those provisions of the
Wisconsin funds availability law that are not preempted by the
Act and Regulation CC. (See also the Board's preemption determination
regarding the Uniform Commercial Code, section 4-213(5), pertaining
to availability of cash deposits.)
Wisconsin Statutes sections 404.213(4m),
215.136, and 186.117 require Wisconsin banks, savings and loan
associations, and credit unions, respectively, to make funds deposited
in accounts available for withdrawal within specified time frames.
Generally, checks drawn on the U.S. Treasury, the State of Wisconsin,
or on a local government located in Wisconsin must be made available
for withdrawal by the second day following deposit. (The law governing
commercial banks determines availability based on banking day;
the laws governing savings and loan associations and credit unions
determine availability based on business days.) In-state and out-of-state
checks must be made available for withdrawal within five days
and eight days following deposit, respectively. Exceptions are
provided for new accounts and reason to doubt collectibility.
In addition, Wisconsin Statutes section 404.103 permits commercial
banks to vary these availability requirements by agreement.
Coverage
Wisconsin law defines account, with
respect to the rules governing commercial banks, as any account
with a bank and includes a checking, time, interest or savings
account (Wisconsin Statutes section 404.104(1)(a)). The statutes
relating to the funds availability requirements applicable to
savings and loan associations and credit unions do not define
the term account. The Federal preemption of state funds availability
requirements applies only to accounts subject to Regulation CC,
which generally consist of transaction accounts. Regulation CC
does not affect the Wisconsin law to the extent that the state
law applies to deposits in savings, time, and other accounts (including
transaction accounts where the account holder is a bank, foreign
bank, or the U.S. Treasury) that are not accounts under Regulation
CC. (Note, however, that under Sec. 229.19(e) of Regulation CC,
Holds on Other Funds, the federal availability schedules may apply
to savings, time, and other accounts not defined as accounts under
Regulation CC in certain circumstances.)
The Wisconsin statute applies to items
deposited in accounts. This term encompasses instruments that
are not defined as checks in Regulation CC (Sec. 229.2(k)), such
as nonnegotiable instruments, and are therefore not subject to
Regulation CC's provisions governing funds availability. Those
items that are subject to Wisconsin law but are not subject to
Regulation CC will continue to be covered by the state availability
schedules and exceptions.
Availability Schedules
Temporary schedule. The Wisconsin statute
requires that in-state nonlocal checks be made available for withdrawal
not later than the fifth day following deposit (Wisconsin Statutes
sections 404.213(4m)(b)(2); 215.136(2)(b); 186.117(2)(b)). This
time period is shorter than the seventh business day availability
required for nonlocal checks under Sec. 229.11(c) of Regulation
CC, although it is not shorter than the schedules for nonlocal
checks set forth in Sec. 229.11(c)(2) and appendix B-1 of Regulation
CC. Thus, the state schedule for in-state nonlocal checks supersedes
the Federal schedule to the extent that it applies to an item
payable by a Wisconsin bank that is defined as a nonlocal check
under Regulation CC and is not subject to reduced schedules under
Sec. 229.11(c)(2) and appendix B-1.
Permanent Schedule. Under the Federal
permanent availability schedule, nonlocal checks must be made
available for withdrawal not later than the fifth business day
following deposit. The fifth day availability requirement for
in-state items in the Wisconsin statute supersedes the Regulation
CC time period adjustment for withdrawal by cash or similar means
in the permanent schedule, to the extent that the in-state checks
are defined as nonlocal under Regulation CC.
Next-day availability. Under the Wisconsin
statute, the proceeds of state and local government checks must
be made available for withdrawal by the second day following deposit,
if the check is endorsed only by the person to whom it was issued
(Wisconsin Statutes sections 404.213(4m)(b)(1); 215.136(2)(b);
and 186.117(2)(a)). Regulation CC requires next-day availability
for these checks if they are (1) deposited in an account of a
payee of the check, (2) deposited in a depositary bank located
in the same state as the state or local government that issued
the check, (3) deposited in person to an employee of the depositary
bank, and (4) deposited with a special deposit slip, if the depositary
bank informed its customers that use of such a slip is a condition
to next-day availability. Under the Federal law, if a state or
local government check is not deposited in person to an employee
of the depositary bank, but meets the other conditions set forth
in Sec. 229.10(c)(1)(iv), the funds must be made available for
withdrawal not later than the second business day following deposit.
The Wisconsin statute supersedes Regulation CC to the extent that
the state law does not permit the use of a special deposit slip
as a condition to receipt of second-day availability.
Exceptions to the schedules. Wisconsin
law provides exceptions to the state availability schedules for
new accounts (those opened less than 90 days) and reason to doubt
collectibility (Wisconsin Statutes sections 404.213(4m)(b); 215.136(2);
and 186.117(2)). The state availability law also permits commercial
banks to vary the funds availability requirements by agreement
(Wisconsin Statute section 404.103(1)). In all cases where the
Federal schedule preempts the state schedule, only the Federal
exceptions apply. For deposits that are covered by the state availability
schedule (e.g., in-state nonlocal checks), a state exception must
apply in order to extend the state availability schedule up to
the Federal availability schedule. Once the deposit is held up
to the Federal availability limit under a state exception, the
depositary bank may further extend the hold only if a Federal
exception can be applied to the deposit. Any time a depositary
bank invokes an exception to extend a hold beyond the time periods
otherwise permitted by law, it must give notice of the extended
hold to its customer in accordance with Sec. 229.13(g) of Regulation
CC.
Business day/banking day. The definitions
of business day and banking day in the Wisconsin statutes are
preempted by the Regulation CC definition of those terms. For
determining the permissible hold under the Wisconsin schedules
that supersede the Regulation CC schedule, deposits are considered
available for withdrawal on the specified number of business days
following the banking day of deposit.
Wisconsin law considers funds to be deposited,
for the purpose of determining when they must be made available
for withdrawal, when an item is ``received at the proof and transit
facility of the depository.'' For the purposes of this preemption
determination, funds are considered deposited under Wisconsin
law in accordance with the rules set forth in Sec. 229.19(a) of
Regulation CC.
Disclosures
The Wisconsin statute does not require
disclosure of a bank's funds availability policy. The state law
does require, however, that a bank give notice to its customer
if it extends the time within which funds will be available for
withdrawal due to the bank's doubt as to the collectibility of
the item (Wisconsin Statutes sections 404.213(4m)(b); 215.136(2);
and 186.117(2)).
Regulation CC preempts state disclosure
requirements concerning funds availability that relate to accounts
that are inconsistent with the Federal requirements. The state
requirement is different from, and therefore inconsistent with,
the Federal disclosure rules (Sec. 229.20(c)(2)). Thus, the Wisconsin
statute is preempted by Regulation CC to the extent that the state
notice requirement applies to accounts as defined by Regulation
CC. The Wisconsin requirement would continue to apply to accounts,
such as savings and time accounts, not governed by the Regulation
CC disclosure requirements.
Subpart A - General
Subpart B - Availability
of Funds and Disclosure of Funds Availability Policies
Subpart C - Collection
of Checks
Appendices A & B
Appendices C & D
Appendix E
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