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§ 4002. —  Expedited funds availability schedules. - US § 4002. —  Expedited funds availability schedules. - US Code : CHAN ROBLES VIRTUAL LAW LIBRARY

[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\
---------------------------------------------------------------------------

    \1\ So in original. Probably should be ``subparagraph''.
---------------------------------------------------------------------------
            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.




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