SECTION
229.12—Availability Schedule
A. 229.12(a) Effective Date The availability
schedule set forth in this section supersedes the temporary schedule
that was effective September 1, 1988, through August 31, 1990.
1. Local
checks must be made available for withdrawal not later than the second
business day following the banking day on which the checks were deposited.
2. In addition, the proceeds of Treasury checks and
U.S. Postal Service money orders not subject to next-day (or second-day)
availability under section 229.10(c), checks drawn on Federal Reserve
Banks and Federal Home Loan Banks, checks drawn by a state or unit
of general local government, cashier’s checks, certified checks,
and teller’s checks not subject to next-day (or second-day)
availability under section 229.10(c) and payable in the same check-processing
region as the depositary bank, must be made available for withdrawal
by the second business day following deposit.
3. Exceptions are made for withdrawals by cash or
similar means and for deposits in banks located outside the 48 contiguous
states. Thus, the proceeds of a local check deposited on a Monday
generally must be made available for withdrawal on Wednesday.
9-136
1. Nonlocal checks must be made available for withdrawal
not later than the fifth business day following deposit, i.e., proceeds
of a nonlocal check deposited on a Monday must be made available for
withdrawal on the following Monday. In addition, a check described
in section 229.10(c) that does not meet the conditions for next-day
availability (or second-day availability) is treated as a nonlocal
check, if the check is drawn on or payable through or at a nonlocal
paying bank. Adjustments are made to the schedule for withdrawals
by cash or similar means and deposits in banks located outside the
48 contiguous states.
9-136.1
2. Reduction
in Schedules a. Section 603(d)(1)
of the EFA Act (12 U.S.C. 4002(d)(1)) requires the Board to reduce
the statutory schedules for any category of checks where most of those
checks would be returned in a shorter period of time than provided
in the schedules. The conferees indicated that “if the new system
makes it possible for two-thirds of the items of a category of checks
to meet this test in a shorter period of time, then the Federal Reserve
must shorten the schedules accordingly.” H.R. Rep. No. 261,
100th Cong., 1st Sess. at 179 (1987).
b. Reduced schedules are provided for certain nonlocal
checks where significant improvements can be made to the EFA Act’s
schedules due to transportation arrangements or proximity between
the check-processing regions of the depositary bank and the paying
bank, allowing for faster collection and return. Appendix B sets forth
the specific reduction of schedules applicable to banks located in
certain check-processing regions.
c. A reduction in schedules may apply even in those
cases where the determination that the check is nonlocal cannot be
made based on the routing number on the check. For example, a nonlocal
credit-union payable-through share draft may be subject to a reduction
in schedules if the routing number of the payable-through bank that
appears on the draft is included in appendix B, even though the determination
that the payable-through share draft is nonlocal is based on the location
of the credit union and not the routing number on the draft.
9-137
1. The EFA Act provides
an adjustment to the availability rules for cash withdrawals. Funds
from local and nonlocal checks need not be available for cash withdrawal
until 5:00 p.m. on the day specified in the schedule. At 5:00 p.m.,
$550 of the deposit must be made available for cash withdrawal. This
$550 is in addition to the first $275 of a day’s deposit, which
must be made available for withdrawal at the start of business on
the first business day following the banking day of deposit. If the
proceeds of local and nonlocal checks become available for withdrawal
on the same business day, the $550 withdrawal limitation applies to
the aggregate amount of the funds that became available for withdrawal
on that day. The remainder of the funds must be available for cash
withdrawal at the start of business on the business day following
the business day specified in the schedule.
2. The EFA Act recognizes that the $550 that must
be provided on the day specified in the schedule may exceed a bank’s
daily ATM cash-withdrawal limit, and explicitly provides that the
EFA Act does not supersede the bank’s policy in this regard.
The Board believes that the rationale for accommodating a bank’s
ATM withdrawal limit also applies to other cash-withdrawal limits
established by that bank. Section 229.19(c)(4) of the regulation addresses
the relation between a bank’s cash-withdrawal limit (for over-the-counter
cash withdrawals as well as ATM cash withdrawals) and the requirements
of this subpart.
3. The Board believes that the Congress included
this special cash-withdrawal rule to provide a depositary bank with
additional time to learn of the nonpayment of a check before it must
make funds available to its customer. If a customer deposits a local
check on a Monday, and that check is returned by the paying bank,
the depositary bank may not receive the returned check until Thursday,
the day after funds for a local check ordinarily must be made available
for withdrawal. The intent of the special cash-withdrawal rule is
to minimize this risk to the depositary bank. For this rule to minimize
the depositary bank’s risk, it must apply not only to cash withdrawals,
but also to withdrawals by other means that result in an irrevocable
debit to the customer’s account or commitment to pay by the
bank on the customer’s behalf during the day. Thus, the cash-withdrawal
rule also includes withdrawals by electronic payment, issuance of
a cashier’s or teller’s check, certification of a check,
or other irrevocable commitment to pay, such as authorization of an
on-line point-of-sale debit. The rule also would apply to checks presented
over the counter for payment on the day of presentment by the depositor
or another person. Such checks could not be dishonored for insufficient
funds if an amount sufficient to cover the check had become available
for cash withdrawal under this rule; however, payment of such checks
would be subject to the bank’s cutoff hour established under
UCC 4-108. The cash-withdrawal rule does not apply to checks and other
provisional debits presented to the bank for payment that the bank
has the right to return.
4. Dollar amount adjustment. See section
229.11 for the rules regarding adjustments for inflation every five
years to the dollar amounts in this section.
9-138
1. The EFA Act and regulation provide an extension
of the availability schedules for check deposits at a branch of a
bank if the branch is located in Alaska, Hawaii, Puerto Rico, American
Samoa, the Commonwealth of the Northern Mariana Islands, Guam, or
the U.S. Virgin Islands. The schedules for local checks, nonlocal
checks (including nonlocal checks subject to the reduced schedules
of appendix B), and deposits at nonproprietary ATMs are extended by
one business day for checks deposited to accounts in banks located
in these jurisdictions that are drawn on or payable at or through
a paying bank not located in the same jurisdiction as the depositary
bank. For example, a check deposited in a bank in Hawaii and drawn
on a San Francisco paying bank must be made available for withdrawal
not later than the third business day following deposit. This extension
does not apply to deposits that must be made available for withdrawal
on the next business day.
2. The Congress did not provide this extension of
the schedules to checks drawn on a paying bank located in Alaska,
Hawaii, Puerto Rico, American Samoa, the Commonwealth of the Northern
Mariana Islands, Guam, or the U.S. Virgin Islands and deposited in
an account at a depositary bank in the 48 contiguous states. Therefore,
a check deposited in a San Francisco bank drawn on a Hawaii paying
bank must be made available for withdrawal not later than the second
rather than the third business day following deposit.
9-139
1. The EFA Act and regulation provide a special
rule for deposits made at nonproprietary ATMs. This paragraph does
not apply to deposits made at proprietary ATMs. All deposits at a
nonproprietary ATM must be made available for withdrawal by the fifth
business day following the banking day of deposit. For example, a
deposit made at a nonproprietary ATM on a Monday, including any deposit
by cash or checks that would otherwise be subject to next-day (or
second-day) availability, must be made available for withdrawal not
later than Monday of the following week. The provisions of section
229.10(c)(1)(vii) requiring a depositary bank to make up to $275 of
an aggregate daily deposit available for withdrawal on the first business
day after the banking day of deposit do not apply to deposits at a
nonproprietary ATM.