What is Reg CC hold?

What is Reg CC hold?

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.

How long is an exception hold?

When an exception applies, the bank may hold funds for a “reasonable” amount of time. “Reasonable” is not specifically defined. Five business days or so is a typical hold time, but longer holds are possible.

How long can a financial institution hold a check?

How Long Can a Bank Hold Funds? Regulation CC permits banks to hold deposited funds for a “reasonable period of time,” which generally means: Up to two business days for on-us checks (meaning checks drawn against an account at the same bank) Up to five additional business days (totaling seven) for local checks.

Do Reg CC holds apply to savings accounts?

Unlike many “consumer” protection laws, Regulation CC does not specifically exclude business purpose deposits; it applies to consumer, fiduciary and business accounts. The regulation does not apply to any type of savings account as defined in Regulation D, which would include money market deposit accounts.

Are savings ACCTS governed under Reg CC?

Answer: Savings accounts, time deposits and MMDAs are not covered by Regulation CC. This does not mean that you cannot delay availability on deposits made into those accounts.

What does cc mean in Reg CC for banking?

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.

Does Reg ulation cc apply to s avings accounts?

The regulation does not apply to any type of savings account as defined in Regulation D, which would include money market deposit accounts. Distributing Regulation CC disclosures for accounts not covered by the regulation would not be a violation of law, but two possibilities come to mind.

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