§ 4002. — Expedited funds availability schedules.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4002]
TITLE 12--BANKS AND BANKING
CHAPTER 41--EXPEDITED FUNDS AVAILABILITY
Sec. 4002. Expedited funds availability schedules
(a) Next business day availability for certain deposits
(1) Cash deposits; wire transfers
Except as provided in subsection (e) of this section and in
section 4003 of this title, in any case in which--
(A) any cash is deposited in an account at a receiving
depository institution staffed by individuals employed by such
institution, or
(B) funds are received by a depository institution by wire
transfer for deposit in an account at such institution,
such cash or funds shall be available for withdrawal not later than
the business day after the business day on which such cash is
deposited or such funds are received for deposit.
(2) Government checks; certain other checks
Funds deposited in an account at a depository institution by
check shall be available for withdrawal not later than the business
day after the business day on which such funds are deposited in the
case of--
(A) a check which--
(i) is drawn on the Treasury of the United States; and
(ii) is endorsed only by the person to whom it was
issued;
(B) a check which--
(i) is drawn by a State;
(ii) is deposited in a receiving depository institution
which is located in such State and is staffed by individuals
employed by such institution;
(iii) is deposited with a special deposit slip which
indicates it is a check drawn by a State; and
(iv) is endorsed only by the person to whom it was
issued;
(C) a check which--
(i) is drawn by a unit of general local government;
(ii) is deposited in a receiving depository institution
which is located in the same State as such unit of general
local government and is staffed by individuals employed by
such institution;
(iii) is deposited with a special deposit slip which
indicates it is a check drawn by a unit of general local
government; and
(iv) is endorsed only by the person to whom it was
issued;
(D) the first $100 deposited by check or checks on any one
business day;
(E) a check deposited in a branch of a depository
institution and drawn on the same or another branch of the same
depository institution if both such branches are located in the
same State or the same check processing region;
(F) a cashier's check, certified check, teller's check, or
depository check which--
(i) is deposited in a receiving depository institution
which is staffed by individuals employed by such
institution;
(ii) is deposited with a special deposit slip which
indicates it is a cashier's check, certified check, teller's
check, or depository check, as the case may be; and
(iii) is endorsed only by the person to whom it was
issued.
(b) Permanent schedule
(1) Availability of funds deposited by local checks
Subject to paragraph (3) of this subsection, subsections (a)(2),
(d), and (e) of this section, and section 4003 of this title, not
more than 1 business day shall intervene between the business day on
which funds are deposited in an account at a depository institution
by a check drawn on a local originating depository institution and
the business day on which the funds involved are available for
withdrawal.
(2) Availability of funds deposited by nonlocal checks
Subject to paragraph (3) of this subsection, subsections (a)(2),
(d), and (e) of this section, and section 4003 of this title, not
more than 4 business days shall intervene between the business day
on which funds are deposited in an account at a depository
institution by a check drawn on a nonlocal originating depository
institution and the business day on which such funds are available
for withdrawal.
(3) Time period adjustments for cash withdrawal of certain
checks
(A) In general
Except as provided in subparagraph (B), funds deposited in
an account in a depository institution by check (other than a
check described in subsection (a)(2) of this section) shall be
available for cash withdrawal not later than the business day
after the business day on which such funds otherwise are
available under paragraph (1) or (2).
(B) 5 p.m. cash availability
Not more than $400 (or the maximum amount allowable in the
case of a withdrawal from an automated teller machine but not
more than $400) of funds deposited by one or more checks to
which this paragraph applies shall be available for cash
withdrawal not later than 5 o'clock post meridian of the
business day on which such funds are available under paragraph
(1) or (2). If funds deposited by checks described in both
paragraph (1) and paragraph (2) become available for cash
withdrawal under this paragraph on the same business day, the
limitation contained in this subparagraph shall apply to the
aggregate amount of such funds.
(C) $100 availability
Any amount available for withdrawal under this paragraph
shall be in addition to the amount available under subsection
(a)(2)(D) of this section.
(4) Applicability
This subsection shall apply with respect to funds deposited by
check in an account at a depository institution on or after
September 1, 1990, except that the Board may, by regulation, make
this subsection or any part of this subsection applicable earlier
than September 1, 1990.
(c) Temporary schedule
(1) Availability of local checks
(A) In general
Subject to subparagraph (B) of this paragraph, subsections
(a)(2), (d), and (e) of this section, and section 4003 of this
title, not more than 2 business days shall intervene between the
business day on which funds are deposited in an account at a
depository institution by a check drawn on a local originating
depository institution and the business day on which such funds
are available for withdrawal.
(B) Time period adjustment for cash withdrawal of certain checks
(i) In general
Except as provided in clause (ii), funds deposited in an
account in a depository institution by check drawn on a
local depository institution that is not a participant in
the same check clearinghouse association as the receiving
depository institution (other than a check described in
subsection (a)(2) of this section) shall be available for
cash withdrawal not later than the business day after the
business day on which such funds otherwise are available
under subparagraph (A).
(ii) 5 p.m. cash availability
Not more than $400 (or the maximum amount allowable in
the case of a withdrawal from an automated teller machine
but not more than $400) of funds deposited by one or more
checks to which this subparagraph applies shall be available
for cash withdrawal not later than 5 o'clock post meridian
of the business day on which such funds are available under
subparagraph (A).
(iii) $100 availability
Any amount available for withdrawal under this
subparagraph shall be in addition to the amount available
under subsection (a)(2)(D) of this section.
(2) Availability of nonlocal checks
Subject to subsections (a)(2), (d), and (e) of this section and
section 4003 of this title, not more than 6 business days shall
intervene between the business day on which funds are deposited in
an account at a depository institution by a check drawn on a
nonlocal originating depository institution and the business day on
which such funds are available for withdrawal.
(3) Applicability
This subsection shall apply with respect to funds deposited by
check in an account at a depository institution after August 31,
1988, and before September 1, 1990, except as may be otherwise
provided under subsection (b)(4) of this section.
(d) Time period adjustments
(1) Reduction generally
Notwithstanding any other provision of law, the Board shall, by
regulation, reduce the time periods established under subsections
(b), (c), and (e) of this section to as short a time as possible and
equal to the period of time achievable under the improved check
clearing system for a receiving depository institution to reasonably
expect to learn of the nonpayment of most items for each category of
checks.
(2) Extension for certain deposits in noncontiguous States
or territories
Notwithstanding any other provision of law, any time period
established under subsection (b), (c), or (e) of this section shall
be extended by 1 business day in the case of any deposit which is
both--
(A) deposited in an account at a depository institution
which is located in Alaska, Hawaii, Puerto Rico, or the Virgin
Islands; and
(B) deposited by a check drawn on an originating depository
institution which is not located in the same State,
commonwealth, or territory as the receiving depository
institution.
(e) Deposits at ATM
(1) Nonproprietary ATM
(A) In general
Not more than 4 business days shall intervene between the
business day a deposit described in subparagraph (B) is made at
a nonproprietary automated teller machine (for deposit in an
account at a depository institution) and the business day on
which funds from such deposit are available for withdrawal.
(B) Deposits described in this paragraph \1\
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\1\ So in original. Probably should be ``subparagraph''.
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A deposit is described in this subparagraph if it is--
(i) a cash deposit;
(ii) a deposit made by a check described in subsection
(a)(2) of this section;
(iii) a deposit made by a check drawn on a local
originating depository institution (other than a check
described in subsection (a)(2) of this section); or
(iv) a deposit made by a check drawn on a nonlocal
originating depository institution (other than a check
described in subsection (a)(2) of this section).
(2) Proprietary ATM--temporary and permanent schedules
The provisions of subsections (a), (b), and (c) of this section
shall apply with respect to any funds deposited at a proprietary
automated teller machine for deposit in an account at a depository
institution.
(3) Study and report on ATM's
The Board shall, either directly or through the Consumer
Advisory Council, establish and maintain a dialogue with depository
institutions and their suppliers on the computer software and
hardware available for use by automated teller machines, and shall,
not later than September 1 of each of the first 3 calendar years
beginning after August 10, 1987, report to the Congress regarding
such software and hardware and regarding the potential for improving
the processing of automated teller machine deposits.
(f) Check return; notice of nonpayment
No provision of this section shall be construed as requiring that,
with respect to all checks deposited in a receiving depository
institution--
(1) such checks be physically returned to such depository
institution; or
(2) any notice of nonpayment of any such check be given to such
depository institution within the times set forth in subsection (a),
(b), (c), or (e) of this section or in the regulations issued under
any such subsection.
(Pub. L. 100-86, title VI, Sec. 603, Aug. 10, 1987, 101 Stat. 637; Pub.
L. 101-625, title X, Sec. 1001, Nov. 28, 1990, 104 Stat. 4424; Pub. L.
102-242, title II, Sec. 227(a), (b)(1), Dec. 19, 1991, 105 Stat. 2307.)
Amendments
1991--Subsec. (e)(1). Pub. L. 102-242, Sec. 227(b)(1)(A), struck out
``--temporary schedule'' after ``ATM'' in heading.
Subsec. (e)(1)(C). Pub. L. 102-242, Sec. 227(a), struck out subpar.
(C) which read as follows: ``This paragraph shall apply with respect to
funds deposited at a nonproprietary automated teller machine after
August 31, 1988, and prior to the expiration of the 2-year period
beginning on November 28, 1990.''
Subsec. (e)(2) to (4). Pub. L. 102-242, Sec. 227(a), (b)(1)(B),
redesignated pars. (3) and (4) as (2) and (3), respectively, and struck
out former par. (2) which related to permanent schedule for funds
deposited at nonproprietary automated teller machines.
1990--Subsec. (e)(1)(A). Pub. L. 101-625, Sec. 1001(1), substituted
``4'' for ``6''.
Subsec. (e)(1)(C). Pub. L. 101-625, Sec. 1001(2), substituted
``prior to the expiration of the 2-year period beginning on November 28,
1990'' for ``before September 1, 1990''.
Subsec. (e)(2)(D). Pub. L. 101-625, Sec. 1001(3), substituted ``the
expiration of the 2-year period beginning on November 28, 1990'' for
``September 1, 1990''.
Effective Date
Section effective Sept. 1, 1988, see section 613(b) of Pub. L. 100-
86, set out as a note under section 4001 of this title.
Section Referred to in Other Sections
This section is referred to in sections 4003, 4006, 4008 of this
title.