12 U.S.C. § 4002 — Expedited funds availability schedules

Page 1581 TITLE 12—BANKS AND BANKING § 4002 (25) Wire transfer The term ‘‘wire transfer’’ has such meaning as the Board shall prescribe by regulations. (Pub. L. 100–86, title VI, § 602, Aug. 10, 1987, 101 Stat. 635; Pub. L. 115–174, title II, § 208(a)(1), May 24, 2018, 132 Stat. 1312.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this title’’, meaning title VI of Pub. L. 100–86, Aug. 10, 1987, 101 Stat. 635, known as the Expedited Funds Avail- ability Act, which enacted this chapter, amended sec- tion 248a of this title, and enacted provisions set out as notes under sections 248a and 4001 of this title. For complete classification of this Act to the Code, see Short Title note below and Tables. AMENDMENTS 2018—Par. (20). Pub. L. 115–174, § 208(a)(1)(A), inserted ‘‘, located in the United States,’’ after ‘‘ATM’’. Pars. (21), (23). Pub. L. 115–174, § 208(a)(1)(B), (C), in- serted ‘‘American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,’’ after ‘‘Puerto Rico,’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115–174, title II, § 208(b), May 24, 2018, 132 Stat. 1313, provided that: ‘‘The amendments made by this section [amending this section and section 4002 of this title] shall take effect on the date that is 30 days after the date of enactment of this Act [May 24, 2018].’’ EFFECTIVE DATE Pub. L. 100–86, title VI, § 613, Aug. 10, 1987, 101 Stat. 652, provided that: ‘‘(a) DATE OF ENACTMENT.—Except as provided in sub- section (b), this title [enacting this chapter, amending section 248a of this title, and enacting provisions set out as notes under this section and section 248a of this title] shall take effect on the date of the enactment of this title [Aug. 10, 1987]. ‘‘(b) 1 YEAR AFTER DATE OF ENACTMENT.—Sections 603, 604, 605, 606, 610, and 611 [enacting sections 4002 to 4005, 4009, and 4010 of this title] shall take effect on Sep- tember 1, 1988.’’ SHORT TITLE Pub. L. 100–86, title VI, § 601, Aug. 10, 1987, 101 Stat. 635, provided that: ‘‘This title [enacting this chapter, amending section 248a of this title, and enacting provi- sions set out as notes under this section and section 248a of this title] may be cited as the ‘Expedited Funds Availability Act’.’’ SEPARABILITY If any provision of Pub. L. 100–86 or the application thereof to any person or circumstances is held invalid, the remainder of Pub. L. 100–86 and the application of the provision to other persons not similarly situated or to other circumstances not to be affected thereby, see section 1205 of Pub. L. 100–86, set out as a note under section 226 of this title. § 4002. Expedited funds availability schedules (a) Next business day availability for certain de- posits (1) Cash deposits; wire transfers Except as provided in subsection (e) 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 in- stitution by wire transfer for deposit in an account at such institution, such cash or funds shall be available for with- drawal not later than the business day after the business day on which such cash is depos- ited or such funds are received for deposit. (2) Government checks; certain other checks Funds deposited in an account at a deposi- tory 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 govern- ment and is staffed by individuals em- ployed 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 $200 deposited by check or checks on any one business day; (E) a check deposited in a branch of a de- pository institution and drawn on the same or another branch of the same depository in- stitution if both such branches are located in the same State or the same check proc- essing region; (F) a cashier’s check, certified check, tell- er’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 deposi- tory 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, Page 1582 TITLE 12—BANKS AND BANKING § 4002 and section 4003 of this title, not more than 1 business day shall intervene between the busi- ness day on which funds are deposited in an account at a depository institution by a check drawn on a local originating depository insti- tution 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 deposi- tory institution and the business day on which such funds are available for withdrawal. (3) Time period adjustments for cash with- drawal of certain checks (A) In general Except as provided in subparagraph (B), funds deposited in an account in a deposi- tory institution by check (other than a check described in subsection (a)(2)) 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 with- drawal 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 with- drawal not later than 5 o’clock post merid- ian 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) $200 availability Any amount available for withdrawal under this paragraph shall be in addition to the amount available under subsection (a)(2)(D). (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 regula- tion, 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 para- graph, 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 in- stitution by a check drawn on a local origi- nating depository institution and the busi- ness day on which such funds are available for withdrawal. (B) Time period adjustment for cash with- drawal of certain checks (i) In general Except as provided in clause (ii), funds deposited in an account in a depository in- stitution by check drawn on a local deposi- tory institution that is not a participant in the same check clearinghouse associa- tion as the receiving depository institu- tion (other than a check described in sub- section (a)(2)) shall be available for cash withdrawal not later than the business day after the business day on which such funds otherwise are available under subpara- graph (A). (ii) 5 p.m. cash availability Not more than $400 (or the maximum amount allowable in the case of a with- drawal from an automated teller machine but not more than $400) of funds deposited by one or more checks to which this sub- 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 subpara- graph (A). (iii) $200 availability Any amount available for withdrawal under this subparagraph shall be in addi- tion to the amount available under sub- section (a)(2)(D). (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 be- tween the business day on which funds are de- posited in an account at a depository institu- tion by a check drawn on a nonlocal origi- nating 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). (d) Time period adjustments (1) Reduction generally Notwithstanding any other provision of law, the Board, jointly with the Director of the Bu- reau of Consumer Financial Protection, shall, by regulation, reduce the time periods estab- lished under subsections (b), (c), and (e) to as short a time as possible and equal to the pe- riod of time achievable under the improved check clearing system for a receiving deposi- tory institution to reasonably expect to learn of the nonpayment of most items for each cat- egory of checks. Page 1583 TITLE 12—BANKS AND BANKING § 4003 1 So in original. Probably should be ‘‘subparagraph’’. (2) Extension for certain deposits in noncontig- uous States or territories Notwithstanding any other provision of law, any time period established under subsection (b), (c), or (e) 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, Ha- waii, Puerto Rico, American Samoa, the Commonwealth of the Northern Mariana Is- lands, Guam, or the Virgin Islands; and (B) deposited by a check drawn on an orig- inating depository institution which is not located in the same State, commonwealth, or territory as the receiving depository in- stitution. (e) Deposits at ATM (1) Nonproprietary ATM (A) In general Not more than 4 business days shall inter- vene between the business day a deposit de- scribed in subparagraph (B) is made at a nonproprietary automated teller machine (for deposit in an account at a depository in- stitution) and the business day on which funds from such deposit are available for withdrawal. (B) Deposits described in this paragraph 1 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); (iii) a deposit made by a check drawn on a local originating depository institution (other than a check described in sub- section (a)(2)); or (iv) a deposit made by a check drawn on a nonlocal originating depository institu- tion (other than a check described in sub- section (a)(2)). (2) Proprietary ATM—temporary and perma- nent schedules The provisions of subsections (a), (b), and (c) shall apply with respect to any funds deposited at a proprietary automated teller machine for deposit in an account at a depository institu- tion. (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 institu- tions and their suppliers on the computer soft- ware and hardware available for use by auto- mated teller machines, and shall, not later than September 1 of each of the first 3 cal- endar years beginning after August 10, 1987, re- port 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 de- posited 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) or in the regulations issued under any such subsection. (Pub. L. 100–86, title VI, § 603, Aug. 10, 1987, 101 Stat. 637; Pub. L. 101–625, title X, § 1001, Nov. 28, 1990, 104 Stat. 4424; Pub. L. 102–242, title II, § 227(a), (b)(1), Dec. 19, 1991, 105 Stat. 2307; Pub. L. 111–203, title X, § 1086(a), (e), July 21, 2010, 124 Stat. 2085, 2086; Pub. L. 115–174, title II, § 208(a)(2), May 24, 2018, 132 Stat. 1312.) Editorial Notes AMENDMENTS 2018—Subsec. (d)(2)(A). Pub. L. 115–174 inserted ‘‘American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,’’ after ‘‘Puerto Rico,’’. 2010—Subsec. (a)(2)(D). Pub. L. 111–203, § 1086(e)(1), substituted ‘‘$200’’ for ‘‘$100’’. Subsecs. (b)(3)(C), (c)(1)(B)(iii). Pub. L. 111–203, § 1086(e)(2), (3), substituted ‘‘$200’’ for ‘‘$100’’ in heading. Subsec. (d)(1). Pub. L. 111–203, § 1086(a), inserted ‘‘, jointly with the Director of the Bureau of Consumer Financial Protection,’’ after ‘‘Board’’. 1991—Subsec. (e)(1). Pub. L. 102–242, § 227(b)(1)(A), struck out ‘‘—temporary schedule’’ after ‘‘ATM’’ in heading. Subsec. (e)(1)(C). Pub. L. 102–242, § 227(a), struck out subpar. (C) which read as follows: ‘‘This paragraph shall apply with respect to funds deposited at a nonpropri- etary automated teller machine after August 31, 1988, and prior to the expiration of the 2-year period begin- ning on November 28, 1990.’’ Subsec. (e)(2) to (4). Pub. L. 102–242, § 227(a), (b)(1)(B), redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which related to perma- nent schedule for funds deposited at nonproprietary automated teller machines. 1990—Subsec. (e)(1)(A). Pub. L. 101–625, § 1001(1), sub- stituted ‘‘4’’ for ‘‘6’’. Subsec. (e)(1)(C). Pub. L. 101–625, § 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, § 1001(3), substituted ‘‘the expiration of the 2-year period beginning on No- vember 28, 1990’’ for ‘‘September 1, 1990’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–174 effective 30 days after May 24, 2018, see section 208(b) of Pub. L. 115–174, set out as a note under section 4001 of this title. EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. 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. § 4003. Safeguard exceptions (a) New accounts Notwithstanding section 4002 of this title, in the case of any account established at a deposi- tory institution by a new depositor, the fol- lowing provisions shall apply with respect to