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Regulation CC - Check Holds

Webinar: ID# 1039673
Recorded On-Demand
About This Course:
Regulation CC is the regulation governing the availability of funds for transaction accounts and the holds that financial institutions can place on checks.

This regulation was passed in 1988 and continues to be one of the toughest compliance problems in financial institutions around the country.

Can we place a hold on a cashier's check? How many days can we hold checks on a new account? Does this apply to business accounts? Do we have to give the hold while the customer is there or can we mail it later?

These questions will all be addressed in this informative and easy to follow program for the frontline. You'll need a copy of your hold form and Regulation CC disclosure to follow this frontline program.What You'll Learn:

  • Purpose of the regulation
  • What is a transaction account?
  • Availability Schedules
  • Business versus banking days, Transaction Accounts and more definitions
  • How to count days and place holds
  • Next day items versus other checks
  • Case by Case holds
  • Exception Holds
  • Hold Notices and how to complete
  • New Accounts exception
  • Common errors on holds

Some Background Info

What Is Reg CC?

Regulation CC is a banking regulation set forth by the Federal Reserve.

The Expedited Funds Availability Act (EFA or EFAA, and commonly referred to as Regulation CC or Reg CC) was enacted in 1987 by the United States Congress for the purpose of standardizing hold periods on deposits made to commercial banks and to regulate institutions' use of deposit holds.

Reg CC sets certain standards for endorsements on checks that are paid by banks and other depository institutions. In other words, Reg CC sets limits for the length of time a financial institution may place a hold on the use of funds after a check has been deposited to an account.

According to the Federal Register, Regulation CC implements the requirements set forth in the EFA Act regarding the availability schedules within which banks?must make funds available for withdrawal, exceptions to those schedules, disclosure of funds availability policies, and payment of interest.

Essentially, checks drawn on local institutions (defined as being in the same check processing region) must be credited on the second business day after deposit, and checks drawn on non-local institutions must be credited on the fifth day after deposit. Regulation CC rules generally apply to:
  • Cash
  • Electronic payments
  • U.S. Treasury Department checks
  • U.S. Postal Service money orders
  • Federal Reserve and Federal Home Loan Bank checks
  • State or local government checks
  • Cashier's, teller's, or certified checks
  • Checks drawn on an account at the same financial institution
Continuing Education Credits:

Click the 'Credits' tab above for information on PHR/SPHR, PDCs, and other CE credits offered by taking this course.
Regulation CC - Check Holds
Available 11:00a till 1:00p Eastern or via On-Demand
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