Laws: Cases and Codes : U.S. Code : Title 12 : Section 4004


   
U.S. Code as of: 01/19/04
Section 4004. Disclosure of funds availability policies

    (a) Notice for new accounts
      Before an account is opened at a depository institution, the
    depository institution shall provide written notice to the
    potential customer of the specific policy of such depository
    institution with respect to when a customer may withdraw funds
    deposited into the customer's account.
    (b) Preprinted deposit slips
      All preprinted deposit slips that a depository institution
    furnishes to its customers shall contain a summary notice, as
    prescribed by the Board in regulations, that deposited items may
    not be available for immediate withdrawal.
    (c) Mailing of notice
      (1) First mailing after enactment
        In the first regularly scheduled mailing to customers occurring
      after September 1, 1988, but not more than 60 days after
      September 1, 1988, each depository institution shall send a
      written notice containing the specific policy of such depository
      institution with respect to when a customer may withdraw funds
      deposited into such customer's account, unless the depository
      institution has provided a disclosure which meets the
      requirements of this section before September 1, 1988.
      (2) Subsequent changes
        A depository institution shall send a written notice to
      customers at least 30 days before implementing any change to the
      depository institution's policy with respect to when customers
      may withdraw funds deposited into consumer accounts, except that
      any change which expedites the availability of such funds shall
      be disclosed not later than 30 days after implementation.
      (3) Upon request
        Upon the request of any person, a depository institution shall
      provide or send such person a written notice containing the
      specific policy of such depository institution with respect to
      when a customer may withdraw funds deposited into a customer's
      account.
    (d) Posting of notice
      (1) Specific notice at manned teller stations
        Each depository institution shall post, in a conspicuous place
      in each location where deposits are accepted by individuals
      employed by such depository institution, a specific notice which
      describes the time periods applicable to the availability of
      funds deposited in a consumer account.
      (2) General notice at automated teller machines
        In the case of any automated teller machine at which any funds
      are received for deposit in an account at any depository
      institution, the Board shall prescribe, by regulations, that the
      owner or operator of such automated teller machine shall post or
      provide a general notice that funds deposited in such machine may
      not be immediately available for withdrawal.
    (e) Notice of interest payment policy
      If a depository institution described in section 4005(b) of this
    title begins the accrual of interest or dividends at a later date
    than the date described in section 4005(a) of this title with
    respect to all funds, including cash, deposited in an
    interest-bearing account at such depository institution, any notice
    required to be provided under subsections (a) and (c) of this
    section shall contain a written description of the time at which
    such depository institution begins to accrue interest or dividends
    on such funds.
    (f) Model disclosure forms
      (1) Prepared by Board
        The Board shall publish model disclosure forms and clauses for
      common transactions to facilitate compliance with the disclosure
      requirements of this section and to aid customers by utilizing
      readily understandable language.
      (2) Use of forms to achieve compliance
        A depository institution shall be deemed to be in compliance
      with the requirements of this section if such institution - 
          (A) uses any appropriate model form or clause as published by
        the Board, or
          (B) uses any such model form or clause and changes such form
        or clause by - 
            (i) deleting any information which is not required by this
          chapter; or
            (ii) rearranging the format.
      (3) Voluntary use
        Nothing in this chapter requires the use of any such model form
      or clause prescribed by the Board under this subsection.
      (4) Notice and comment
        Model disclosure forms and clauses shall be adopted by the
      Board only after notice duly given in the Federal Register and an
      opportunity for public comment in accordance with section 553 of
      title 5.



Previous [Notes] Next

Related Resources

Banking Law Guide

Banking Articles and Documents

Banking Discussion