(a) New accounts. For purposes of this paragraph, checks subject
to section 229.10 (c)(1)(v) include traveler’s checks.
(1) A deposit in a new account—
(i) is subject to the requirements of section 229.10(a) and (b) to
make funds from deposits by cash and electronic payments available
for withdrawal on the business day following the banking day of deposit
or receipt;
(ii)
is subject to the requirements of section 229.10(c)(1)(i) through
(v) and section 229.10(c)(2) only with respect to the first $6,725
of funds deposited on any one banking day; but the amount of the deposit
in excess of $6,725 shall be available for withdrawal not later than
the ninth business day following the banking day on which funds are
deposited; and
(iii)
is not subject to the availability requirements of sections 229.10(c)(1)(vi)
and (vii) and 229.12.
For purposes of this paragraph, checks subject to section
229.10(c)(1)(v) include traveler’s checks.
(2) An account is considered a new account
during the first 30 calendar days after the account is established.
An account is not considered a new account if each customer on the
account has had, within 30 calendar days before the account is established,
another account at the depositary bank for at least 30 calendar days.
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(b) Large deposits. Sections 229.10(c) and 229.12 do not apply to the aggregate amount
of deposits by one or more checks to the extent that the aggregate
amount is in excess of $6,725 on any one banking day. For customers
that have multiple accounts at a depositary bank, the bank may apply
this exception to the aggregate deposits to all accounts held by the
customer, even if the customer is not the sole holder of the accounts
and not all of the holders of the accounts are the same.
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(c) Redeposited checks. Sections 229.10(c)
and 229.12 do not apply to a check that has been returned unpaid and
redeposited by the customer or the depositary bank. This exception
does not apply—
(1) to a check that has been returned due
to a missing indorsement and redeposited after the missing indorsement
has been obtained, if the reason for return indication on the check
states that it was returned due to a missing indorsement; or
(2) to a check that has been
returned because it was postdated, if the reason for return indicated
on the check states that it was returned because it was postdated,
and if the check is no longer postdated when redeposited.
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(d) Repeated overdrafts. If any account or combination of accounts of a depositary bank’s
customer has been repeatedly overdrawn, then for a period of six months
after the last such overdraft, sections 229.10(c) and 229.12 do not
apply to any of the accounts. A depositary bank may consider a customer’s
account to be repeatedly overdrawn if—
(1) on six or more banking days within
the preceding six months, the account balance is negative, or the
account balance would have become negative if checks or other charges
to the account had been paid; or
(2) on two or more banking days within
the preceding six months, the account balance is negative, or the
account balance would have become negative, in the amount of $6,725
or more, if checks or other charges to the account had been paid.
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(e) Reasonable cause to doubt collectibility.
(1) In general. Sections 229.10(c) and 229.12 do not apply to a
check deposited in a depositary bank if the depositary bank has reasonable
cause to believe that the check is uncollectible from the paying bank.
Reasonable cause to believe a check is uncollectible requires the
existence of facts that would cause a well-grounded belief in the mind
of a reasonable person. Such belief shall not be based on the fact
that the check is of a particular class or is deposited by a particular
class of persons. The reason for the bank’s belief that the
check is uncollectible shall be included in the notice required under
paragraph (g) of this section.
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(2) Overdraft
and returned-check fees. A depositary bank that extends the time
when funds will be available for withdrawal as described in paragraph
(e)(1) of this section, and does not furnish the depositor with written
notice at the time of deposit shall not assess any fees for any subsequent
overdrafts (including use of a line of credit) or return of checks
of other debits to the account, if—
(i) the overdraft or
return of the check would not have occurred except for the fact that
the deposited funds were delayed under paragraph (e)(1) of this section;
and
(ii) the deposited
check was paid by the paying bank.
Notwithstanding the foregoing, the depositary bank may
assess an overdraft or returned-check fee if it includes a notice
concerning overdraft and returned-check fees with the notice of exception
required in paragraph (g) of this section and, when required, refunds
any such fees upon the request of the customer. The notice must state
that the customer may be entitled to a refund of overdraft or returned-check
fees that are assessed if the check subject to the exception is paid
and how to obtain a refund.
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(f) Emergency conditions. Sections 229.10(c)
and 229.12 do not apply to funds deposited by check in a depositary
bank in the case of—
(1) an interruption of communications or
computer or other equipment facilities;
(2) a suspension of payments by another
bank;
(3) a war; or
(4) an emergency condition
beyond the control of the depositary bank,
if the depositary bank exercises such diligence as the circumstances
require.
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(g) Notice of exception.
(1) In general. Subject to paragraphs (g)(2) and (g)(3) of this
section, when a depositary bank extends the time when funds will be
available for withdrawal based on the application of an exception
contained in paragraphs (b) through (e) of this section, it must provide
the depositor with a written notice.
(i) The notice shall
include the following information:
(A) a number or code, which
need not exceed four digits, that identifies the customer’s
account;
(B) the date of
the deposit;
(C) the amount
of the deposit that is being delayed;
(D) the reason the exception was invoked;
and
(E) the time period
within which the funds will be available for withdrawal.
(ii) The notice shall
be provided to the depositor at the time of the deposit, unless the
deposit is not made in person to an employee of the depositary bank,
or, if the facts upon which a determination to invoke one of the exceptions
in paragraphs (b) through (e) of this section to delay a deposit only
become known to the depositary bank after the time of the deposit.
If the notice is not given at the time of the deposit, the depositary
bank shall mail or deliver the notice to the customer as soon as practicable,
but no later than the first business day following the day the facts
become known to the depositary bank, or the deposit is made, whichever
is later.
9-153.1
(2) One-time
exception notice. In lieu of providing notice pursuant to paragraph
(g)(1) of this section, a depositary bank that extends the time when
funds deposited in a nonconsumer account will be available for withdrawal
based on an exception contained in paragraph (b) or (c) of this section may
provide a single notice to the customer that includes the following
information:
(i) the reason(s) the exception may
be invoked; and
(ii) the time period within which deposits subject to the exception
generally will be available for withdrawal.
This one-time notice shall be provided only if each type
of exception cited in the notice will be invoked for most check deposits
in the account to which the exception could apply. This notice shall
be provided at or prior to the time notice must be provided under
paragraph (g)(1)(ii) of this section.
(3) Notice of
repeated-overdrafts exception. In lieu of providing notice pursuant
to paragraph (g)(1) of this section, a depositary bank that extends
the time when funds deposited in an account will be available for
withdrawal based on the exception contained in paragraph (d) of this
section may provide a notice to the customer for each time period
during which the exception will be in effect. The notice shall include
the following information:
(i) the account number of the customer;
(ii) the fact that
the availability of funds deposited in the customer’s account
will be delayed because the repeated-overdrafts exception will be
invoked;
(iii) the
time period within which deposits subject to the exception generally
will be available for withdrawal; and
(iv) the time period during which the
exception will apply.
This notice shall be provided at or prior to the time
notice must be provided under paragraph (g)(1)(ii) of this section
and only if the exception cited in the notice will be invoked for
most check deposits in the account.
9-153.11
(4) Emergency-conditions
exception notice. When a depositary bank extends the time when
funds will be available for withdrawal based on the application of
the emergency-conditions exception contained in paragraph (f) of this
section, it must provide the depositor with notice in a reasonable
form and within a reasonable time given the circumstances. The notice
shall include the reason the exception was invoked and the time period
within which funds shall be made available for withdrawal, unless
the depositary bank, in good faith, does not know at the time the
notice is given the duration of the emergency and, consequently, when
the funds must be made available. The depositary bank is not required
to provide a notice if the funds subject to the exception become available
before the notice must be sent.
9-153.2
(5) Record retention. A depositary bank shall retain a record, in accordance with section
229.21(g), of each notice provided pursuant to its application of
the reasonable-cause exception under paragraph (e) of this section,
together with a brief statement of the facts giving rise to the bank’s
reason to doubt the collectibility of the check.
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(h) Availability of deposits subject to
exceptions.
(1) If an exception contained in paragraphs
(b) through (f) of this section applies, the depositary bank may extend
the time periods established under sections 229.10(c) and 229.12 by
a reasonable period of time.
(2) If a depositary bank invokes an exception
contained in paragraphs (b) through (e) of this section with respect
to a check described in section 229.10(c)(1)(i) through (v) or section
229.10(c)(2), it shall make the funds available for withdrawal not
later than a reasonable period after the day the funds would have
been required to be made available had the check been subject to section
229.12.
(3) If a depositary
bank invokes an exception under paragraph (f) of this section based
on an emergency condition, the depositary bank shall make the funds
available for withdrawal not later than a reasonable period after
the emergency has ceased or the period established in sections 229.10(c)
and 229.12, whichever is later.
(4) For the purposes of this section, a
“reasonable period” is an extension of up to one business
day for checks described in section 229.10(c)(1)(vi), five business
days for checks described in section 229.12(b)(1) through (4), and
six business days for checks described in section 229.12(c)(1) and
(2) or section 229.12(f). A longer extension may be reasonable, but
the bank has the burden of so establishing.
