§ 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
CHAPTER 41--EXPEDITED FUNDS AVAILABILITY
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.
