Regulation CC changes


Effective July 21, 2011, section 1086 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 amends the Expedited Funds Availability Act by increasing the amount from $100 to $200 that must be available for withdrawal by opening of business on the next day. Your credit union will need to review your disclosures relating to Reg. CC (especially those using model forms C-3, C-4, or C-5) and make sure you update them to read $200 instead of $100. Once the changes are made, credit unions are required to send existing members a notice no later than 30 days after the change has been implemented.  

 As of June 12, 2011 all online credit unions received the 11.2 release that included the Reg. CC changes.

Here is a section from the Federal Register:

IV. Dodd-Frank Act Amendments

A. EFA Act Dollar Amounts

Section 1086 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) amends the EFA Act by increasing from $100 to $200 the amount of deposited funds that banks must make available for withdrawal by opening of business on the next day.30 The effective date of this provision of the act is the ‘‘designated transfer date,’’ which the Secretary of the Treasury has determined to be July 21, 2011.31 This provision of the EFA Act is implemented in § 229.10(c)(1)(vii).  Additionally, the model disclosure forms set forth in current appendix C reflect the requirement that a bank must make $100 of the deposit available on the next business day. When the Dodd-Frank Act’s increase to $200 becomes effective, banks should ensure that their disclosures reflect the new funds availability schedule and that customers are notified of the changes in policy in accordance with § 229.18(e). Specifically, effective July 21, 2011, a bank basing its funds-availability disclosure on current model C–3, C–4, or C–5 must ensure that its disclosure indicates that the first $200 (rather than $100) of a check deposit will be available on the next business day after the day of deposit.32 Section 1086 amends the EFA Act to require the Board, jointly  with the Bureau of Consumer Financial Protection (Bureau), to update the dollar amounts to reflect inflation every five years after December 31, 2011.33 These amounts include the amount of funds a depositary bank must make available from a deposit of a check not subject to next-day availability (§ 229.10(c)(1)(vii)), by cash or similar means (§ 229.12(b)), and under the new account and large-deposit exceptions (§§ 229.13(a) and (b)). These amounts also include the EFA Act’s damage limitations (§ 229.21(a)). To facilitate future amendments to the regulation in this regard, the proposed amendments minimize the number of references to specific dollar amounts. For example, in the future, the $100 (which increases to $200 as of the transfer date) mentioned above would be considered ‘‘the minimum amount of a deposit that must be made available on the next day.’’ The Board plans to seek comment on proposed methods of indexing the amounts to inflation jointly with the Bureau at a later date.

For a copy of the entire document, click here.

Leave a Reply

  • (will not be published)

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>