APPENDIX F—Official Board Interpretations; Preemption Determinations

Section 4-213(5) of the Uniform Commercial Code (UCC) provides that money deposited in a bank is available for withdrawal as of right at the opening of business of the banking day after deposit. Although the language “deposited in a bank” is unclear, arguably it is broader than the language “made in person to an employee of the depositary bank,” which conditions the next-day availability of cash under Regulation CC (§ 229.10(a)(1)). Under Regulation CC, deposits of cash that are not made in person to an employee of the depositary bank must be made available by the second business day after the banking day of deposit (§ 229.10(a)(2)). Therefore, this provision of the UCC may call for the availability of certain cash deposits in a shorter time than provided in Regulation CC.

This provision of the UCC, however, is subject to section 4-103(1), which provides, in part, that “the effect of the provisions of this Article may be varied by agreement . . . . ” (The Regulation CC funds-availability requirements may not be varied by agreement.) UCC 4-213(5) supersedes the Regulation CC provision in section 229.10(a)(2), but a depositary bank may not agree with its customer under section 4-103(1) of the code to extend availability beyond the time periods provided in section 229.10(a) of Regulation CC.