US Supreme Court Decisions On-Line | US Laws

§ 4004. —  Disclosure of funds availability policies.

[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC4004]

                       TITLE 12--BANKS AND BANKING
Sec. 4004. Disclosure of funds availability policies

(a) Notice for new accounts

    Before an account is opened at a depository institution, the 
depository institution shall provide written notice to the potential 
customer of the specific policy of such depository institution with 
respect to when a customer may withdraw funds deposited into the 
customer's account.

(b) Preprinted deposit slips

    All preprinted deposit slips that a depository institution furnishes 
to its customers shall contain a summary notice, as prescribed by the 
Board in regulations, that deposited items may not be available for 
immediate withdrawal.

(c) Mailing of notice

                  (1) First mailing after enactment

        In the first regularly scheduled mailing to customers occurring 
    after September 1, 1988, but not more than 60 days after September 
    1, 1988, each depository institution shall send a written notice 
    containing the specific policy of such depository institution with 
    respect to when a customer may withdraw funds deposited into such 
    customer's account, unless the depository institution has provided a 
    disclosure which meets the requirements of this section before 
    September 1, 1988.

                       (2) Subsequent changes

        A depository institution shall send a written notice to 
    customers at least 30 days before implementing any change to the 
    depository institution's policy with respect to when customers may 
    withdraw funds deposited into consumer accounts, except that any 
    change which expedites the availability of such funds shall be 
    disclosed not later than 30 days after implementation.

                          (3) Upon request

        Upon the request of any person, a depository institution shall 
    provide or send such person a written notice containing the specific 
    policy of such depository institution with respect to when a 
    customer may withdraw funds deposited into a customer's account.

(d) Posting of notice

            (1) Specific notice at manned teller stations

        Each depository institution shall post, in a conspicuous place 
    in each location where deposits are accepted by individuals employed 
    by such depository institution, a specific notice which describes 
    the time periods applicable to the availability of funds deposited 
    in a consumer account.

           (2) General notice at automated teller machines

        In the case of any automated teller machine at which any funds 
    are received for deposit in an account at any depository 
    institution, the Board shall prescribe, by regulations, that the 
    owner or operator of such automated teller machine shall post or 
    provide a general notice that funds deposited in such machine may 
    not be immediately available for withdrawal.

(e) Notice of interest payment policy

    If a depository institution described in section 4005(b) of this 
title begins the accrual of interest or dividends at a later date than 
the date described in section 4005(a) of this title with respect to all 
funds, including cash, deposited in an interest-bearing account at such 
depository institution, any notice required to be provided under 
subsections (a) and (c) of this section shall contain a written 
description of the time at which such depository institution begins to 
accrue interest or dividends on such funds.

(f) Model disclosure forms

                        (1) Prepared by Board

        The Board shall publish model disclosure forms and clauses for 
    common transactions to facilitate compliance with the disclosure 
    requirements of this section and to aid customers by utilizing 
    readily understandable language.

               (2) Use of forms to achieve compliance

        A depository institution shall be deemed to be in compliance 
    with the requirements of this section if such institution--
            (A) uses any appropriate model form or clause as published 
        by the Board, or
            (B) uses any such model form or clause and changes such form 
        or clause by--
                (i) deleting any information which is not required by 
            this chapter; or
                (ii) rearranging the format.

                          (3) Voluntary use

        Nothing in this chapter requires the use of any such model form 
    or clause prescribed by the Board under this subsection.

                       (4) Notice and comment

        Model disclosure forms and clauses shall be adopted by the Board 
    only after notice duly given in the Federal Register and an 
    opportunity for public comment in accordance with section 553 of 
    title 5.

(Pub. L. 100-86, title VI, Sec. 605, Aug. 10, 1987, 101 Stat. 644.)

                       References in Text

    After enactment, referred to in the heading of subsec. (c)(1), 
probably means after the effective date of this section, which is Sept. 
1, 1988.

                             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 4005, 4009 of this title.