Laws: Cases and Codes : U.S. Code : Title 12 : Section 4002


   
U.S. Code as of: 01/19/04
Section 4002. Expedited funds availability schedules

    (a) Next business day availability for certain deposits
      (1) Cash deposits; wire transfers
        Except as provided in subsection (e) of this section and in
      section 4003 of this title, in any case in which - 
          (A) any cash is deposited in an account at a receiving
        depository institution staffed by individuals employed by such
        institution, or
          (B) funds are received by a depository institution by wire
        transfer for deposit in an account at such institution,

      such cash or funds shall be available for withdrawal not later
      than the business day after the business day on which such cash
      is deposited or such funds are received for deposit.
      (2) Government checks; certain other checks
        Funds deposited in an account at a depository institution by
      check shall be available for withdrawal not later than the
      business day after the business day on which such funds are
      deposited in the case of - 
          (A) a check which - 
            (i) is drawn on the Treasury of the United States; and
            (ii) is endorsed only by the person to whom it was issued;

          (B) a check which - 
            (i) is drawn by a State;
            (ii) is deposited in a receiving depository institution
          which is located in such State and is staffed by individuals
          employed by such institution;
            (iii) is deposited with a special deposit slip which
          indicates it is a check drawn by a State; and
            (iv) is endorsed only by the person to whom it was issued;

          (C) a check which - 
            (i) is drawn by a unit of general local government;
            (ii) is deposited in a receiving depository institution
          which is located in the same State as such unit of general
          local government and is staffed by individuals employed by
          such institution;
            (iii) is deposited with a special deposit slip which
          indicates it is a check drawn by a unit of general local
          government; and
            (iv) is endorsed only by the person to whom it was issued;

          (D) the first $100 deposited by check or checks on any one
        business day;
          (E) a check deposited in a branch of a depository institution
        and drawn on the same or another branch of the same depository
        institution if both such branches are located in the same State
        or the same check processing region;
          (F) a cashier's check, certified check, teller's check, or
        depository check which - 
            (i) is deposited in a receiving depository institution
          which is staffed by individuals employed by such institution;
            (ii) is deposited with a special deposit slip which
          indicates it is a cashier's check, certified check, teller's
          check, or depository check, as the case may be; and
            (iii) is endorsed only by the person to whom it was issued.
    (b) Permanent schedule
      (1) Availability of funds deposited by local checks
        Subject to paragraph (3) of this subsection, subsections
      (a)(2), (d), and (e) of this section, and section 4003 of this
      title, not more than 1 business day shall intervene between the
      business day on which funds are deposited in an account at a
      depository institution by a check drawn on a local originating
      depository institution and the business day on which the funds
      involved are available for withdrawal.
      (2) Availability of funds deposited by nonlocal checks
        Subject to paragraph (3) of this subsection, subsections
      (a)(2), (d), and (e) of this section, and section 4003 of this
      title, not more than 4 business days shall intervene between the
      business day on which funds are deposited in an account at a
      depository institution by a check drawn on a nonlocal originating
      depository institution and the business day on which such funds
      are available for withdrawal.
      (3) Time period adjustments for cash withdrawal of certain checks
        (A) In general
          Except as provided in subparagraph (B), funds deposited in an
        account in a depository institution by check (other than a
        check described in subsection (a)(2) of this section) shall be
        available for cash withdrawal not later than the business day
        after the business day on which such funds otherwise are
        available under paragraph (1) or (2).
        (B) 5 p.m. cash availability
          Not more than $400 (or the maximum amount allowable in the
        case of a withdrawal from an automated teller machine but not
        more than $400) of funds deposited by one or more checks to
        which this paragraph applies shall be available for cash
        withdrawal not later than 5 o'clock post meridian of the
        business day on which such funds are available under paragraph
        (1) or (2). If funds deposited by checks described in both
        paragraph (1) and paragraph (2) become available for cash
        withdrawal under this paragraph on the same business day, the
        limitation contained in this subparagraph shall apply to the
        aggregate amount of such funds.
        (C) $100 availability
          Any amount available for withdrawal under this paragraph
        shall be in addition to the amount available under subsection
        (a)(2)(D) of this section.
      (4) Applicability
        This subsection shall apply with respect to funds deposited by
      check in an account at a depository institution on or after
      September 1, 1990, except that the Board may, by regulation, make
      this subsection or any part of this subsection applicable earlier
      than September 1, 1990.
    (c) Temporary schedule
      (1) Availability of local checks
        (A) In general
          Subject to subparagraph (B) of this paragraph, subsections
        (a)(2), (d), and (e) of this section, and section 4003 of this
        title, not more than 2 business days shall intervene between
        the business day on which funds are deposited in an account at
        a depository institution by a check drawn on a local
        originating depository institution and the business day on
        which such funds are available for withdrawal.
        (B) Time period adjustment for cash withdrawal of certain
          checks
          (i) In general
            Except as provided in clause (ii), funds deposited in an
          account in a depository institution by check drawn on a local
          depository institution that is not a participant in the same
          check clearinghouse association as the receiving depository
          institution (other than a check described in subsection
          (a)(2) of this section) shall be available for cash
          withdrawal not later than the business day after the business
          day on which such funds otherwise are available under
          subparagraph (A).
          (ii) 5 p.m. cash availability
            Not more than $400 (or the maximum amount allowable in the
          case of a withdrawal from an automated teller machine but not
          more than $400) of funds deposited by one or more checks to
          which this subparagraph applies shall be available for cash
          withdrawal not later than 5 o'clock post meridian of the
          business day on which such funds are available under
          subparagraph (A).
          (iii) $100 availability
            Any amount available for withdrawal under this subparagraph
          shall be in addition to the amount available under subsection
          (a)(2)(D) of this section.
      (2) Availability of nonlocal checks
        Subject to subsections (a)(2), (d), and (e) of this section and
      section 4003 of this title, not more than 6 business days shall
      intervene between the business day on which funds are deposited
      in an account at a depository institution by a check drawn on a
      nonlocal originating depository institution and the business day
      on which such funds are available for withdrawal.
      (3) Applicability
        This subsection shall apply with respect to funds deposited by
      check in an account at a depository institution after August 31,
      1988, and before September 1, 1990, except as may be otherwise
      provided under subsection (b)(4) of this section.
    (d) Time period adjustments
      (1) Reduction generally
        Notwithstanding any other provision of law, the Board shall, by
      regulation, reduce the time periods established under subsections
      (b), (c), and (e) of this section to as short a time as possible
      and equal to the period of time achievable under the improved
      check clearing system for a receiving depository institution to
      reasonably expect to learn of the nonpayment of most items for
      each category of checks.
      (2) Extension for certain deposits in noncontiguous States or
        territories
        Notwithstanding any other provision of law, any time period
      established under subsection (b), (c), or (e) of this section
      shall be extended by 1 business day in the case of any deposit
      which is both - 
          (A) deposited in an account at a depository institution which
        is located in Alaska, Hawaii, Puerto Rico, or the Virgin
        Islands; and
          (B) deposited by a check drawn on an originating depository
        institution which is not located in the same State,
        commonwealth, or territory as the receiving depository
        institution.
    (e) Deposits at ATM
      (1) Nonproprietary ATM
        (A) In general
          Not more than 4 business days shall intervene between the
        business day a deposit described in subparagraph (B) is made at
        a nonproprietary automated teller machine (for deposit in an
        account at a depository institution) and the business day on
        which funds from such deposit are available for withdrawal.
        (B) Deposits described in this paragraph (!1)

          A deposit is described in this subparagraph if it is - 
            (i) a cash deposit;
            (ii) a deposit made by a check described in subsection
          (a)(2) of this section;
            (iii) a deposit made by a check drawn on a local
          originating depository institution (other than a check
          described in subsection (a)(2) of this section); or
            (iv) a deposit made by a check drawn on a nonlocal
          originating depository institution (other than a check
          described in subsection (a)(2) of this section).
      (2) Proprietary ATM - temporary and permanent schedules
        The provisions of subsections (a), (b), and (c) of this section
      shall apply with respect to any funds deposited at a proprietary
      automated teller machine for deposit in an account at a
      depository institution.
      (3) Study and report on ATM's
        The Board shall, either directly or through the Consumer
      Advisory Council, establish and maintain a dialogue with
      depository institutions and their suppliers on the computer
      software and hardware available for use by automated teller
      machines, and shall, not later than September 1 of each of the
      first 3 calendar years beginning after August 10, 1987, report to
      the Congress regarding such software and hardware and regarding
      the potential for improving the processing of automated teller
      machine deposits.
    (f) Check return; notice of nonpayment
      No provision of this section shall be construed as requiring
    that, with respect to all checks deposited in a receiving
    depository institution - 
        (1) such checks be physically returned to such depository
      institution; or
        (2) any notice of nonpayment of any such check be given to such
      depository institution within the times set forth in subsection
      (a), (b), (c), or (e) of this section or in the regulations
      issued under any such subsection.



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