(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 $5,525 of funds deposited on any one banking
day; but the amount of the deposit in excess of $5,525 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 $5,525 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 $5,525
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.
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(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.
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(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.
