12 U.S.C. § 4004 — Disclosure of funds availability policies

Page 1586 TITLE 12—BANKS AND BANKING § 4004 Bureau of Consumer Financial Protection.’’ for ‘‘Board.’’ 1991—Subsec. (a)(2). Pub. L. 102–242, § 227(b)(2), struck out ‘‘and (2)’’ after ‘‘paragraphs (1)’’. Subsec. (b). Pub. L. 102–242, § 225(1), inserted ‘‘(a)(2),’’ after ‘‘subsection’’. Subsec. (c)(1). Pub. L. 102–242, § 225(2), substituted ‘‘(a)(2)’’ for ‘‘(a)(2)(F)’’. Subsec. (d). Pub. L. 102–242, § 225(3), inserted ‘‘(a)(2),’’ after ‘‘subsections’’. Subsec. (f)(1)(A)(i). Pub. L. 102–242, § 225(4), sub- stituted ‘‘time period within which’’ for ‘‘day’’. Subsec. (f)(2)(D), (E). Pub. L. 102–242, § 225(5), added subpars. (D) and (E). Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. 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. § 4004. Disclosure of funds availability policies (a) Notice for new accounts Before an account is opened at a depository in- stitution, the depository institution shall pro- vide 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 con- tain a summary notice, as prescribed by the Board, jointly with the Director of the Bureau of Consumer Financial Protection, 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 depos- ited into such customer’s account, unless the depository institution has provided a disclo- sure which meets the requirements of this sec- tion before September 1, 1988. (2) Subsequent changes A depository institution shall send a written notice to customers at least 30 days before im- plementing any change to the depository in- stitution’s policy with respect to when cus- tomers 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 depos- ited 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 de- posits 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 con- sumer account. (2) General notice at automated teller ma- chines 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, jointly with the Director of the Bureau of Consumer Financial Protection, shall pre- scribe, by regulations, that the owner or oper- ator of such automated teller machine shall post or provide a general notice that funds de- posited in such machine may not be imme- diately 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 de- scribed in section 4005(a) of this title with re- spect 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) 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 and Bureau The Board, jointly with the Director of the Bureau of Consumer Financial Protection, 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 uti- lizing 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, jointly Page 1587 TITLE 12—BANKS AND BANKING § 4006 1 So in original. with the Director of the Bureau of Consumer Financial Protection,,1 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, jointly with the Director of the Bu- reau of Consumer Financial Protection, under this subsection. (4) Notice and comment Model disclosure forms and clauses shall be adopted by the Board, jointly with the Direc- tor of the Bureau of Consumer Financial Pro- tection, 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, § 605, Aug. 10, 1987, 101 Stat. 644; Pub. L. 111–203, title X, § 1086(c), July 21, 2010, 124 Stat. 2086.) Editorial Notes 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. AMENDMENTS 2010—Subsecs. (b), (d)(2). Pub. L. 111–203, § 1086(c)(1), inserted ‘‘, jointly with the Director of the Bureau of Consumer Financial Protection,’’ after ‘‘Board’’. Subsec. (f)(1). Pub. L. 111–203, § 1086(c)(2), inserted ‘‘and Bureau’’ after ‘‘Board’’ in heading. Pub. L. 111–203, § 1086(c)(1), inserted ‘‘, jointly with the Director of the Bureau of Consumer Financial Pro- tection,’’ after ‘‘Board’’. Subsec. (f)(2)(A), (3), (4). Pub. L. 111–203, § 1086(c)(1), inserted ‘‘, jointly with the Director of the Bureau of Consumer Financial Protection,’’ after ‘‘Board’’. Statutory Notes and Related Subsidiaries 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. § 4005. Payment of interest (a) In general Except as provided in subsection (b) or (c) and notwithstanding any other provision of law, in- terest shall accrue on funds deposited in an in- terest-bearing account at a depository institu- tion beginning not later than the business day on which the depository institution receives provisional credit for such funds. (b) Special rule for credit unions Subsection (a) shall not apply to an account at a depository institution described in section 461(b)(1)(A)(iv) of this title if the depository in- stitution— (1) begins the accrual of interest or divi- dends at a later date than the date described in subsection (a) with respect to all funds, in- cluding cash, deposited in such account; and (2) provides notice of the interest payment policy in the manner required under section 4004(e) of this title. (c) Exception for checks returned unpaid No provision of this chapter shall be construed as requiring the payment of interest or divi- dends on funds deposited by a check which is re- turned unpaid. (Pub. L. 100–86, title VI, § 606, Aug. 10, 1987, 101 Stat. 646.) Statutory Notes and Related Subsidiaries 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. § 4006. Miscellaneous provisions (a) After-hours deposits For purposes of this chapter, any deposit which is made on a Saturday, Sunday, legal hol- iday, or after the close of business on any busi- ness day shall be deemed to have been made on the next business day. (b) Availability at start of business day Except as provided in subsections (b)(3) and (c)(1)(B) of section 4002 of this title, if any provi- sion of this chapter requires that funds be avail- able for withdrawal on any business day, such funds shall be available for withdrawal at the start of such business day. (c) Effect on policies of depository institutions No provision of this chapter shall be construed as— (1) prohibiting a depository institution from making funds available for withdrawal in a shorter period of time than the period of time required by this chapter; or (2) affecting a depository institution’s right— (A) to accept or reject a check for deposit; (B) to revoke any provisional settlement made by the depository institution with re- spect to a check accepted by such institu- tion for deposit; (C) to charge back the depositor’s account for the amount of such check; or (D) to claim a refund of such provisional credit. (d) Prohibition on freezing certain funds in an account In any case in which a check is deposited in an account at a depository institution and the funds represented by such check are not yet available for withdrawal pursuant to this chap- ter, the depository institution may not freeze any other funds in such account (which are oth- erwise available for withdrawal pursuant to this chapter) solely because the funds so deposited are not yet available for withdrawal. (e) Employee training on and compliance with requirements of this chapter Each depository institution shall—