Transaction Account

A transaction account is an account that is used for bills and everyday purchases (for example: demand deposit accounts, Negotiable Order of Withdrawal (NOW) accounts, share draft accounts, or automatic transfer accounts). The depositor or account holder can make the following transactions:

• Transfers
• Withdrawals
• Transferable instruments
• Payment orders of withdrawal
• Telephone transfers
• Transfers to third persons or others 
• Third-party payments at an ATM, a remote service unit, or other electronic devices 

Available for Withdrawal

Funds that are available for withdrawal are funds that are in a client's account and available for all uses permitted to the client (for example: withdrawal, paying by check or cashing a check).

Business Day

A business day is a regular workday, Monday through Friday, other than federal holidays. Saturday is not a business day, even if the bank is office open that day. 

Banking Day

A banking day is any day in which a commercial bank is open for business.  A typical banking day at CCB runs from 9 AM to 5 PM, with 5 PM being the cut-off time.  Activity after 5 PM is considered after hours or next day business. Under Regulation CC, a bank cannot establish a cut-off time earlier than 2 PM, unless the bank closes earlier than 2 PM and does not reopen for the remainder of that day. 

Cash Item

A cash item is a negotiable check or item the bank will accept for deposit in the ordinary course of business (for example: cashier's checks, US Postal Money Orders, and traveler's checks). A bank may give immediate credit for cash items or may place a hold on the cash item and give deferred availability according to the Funds Availability Schedule Note: Only cash items are subject to Regulation CC Funds Availability Schedules.

Cashier's Check 

A cashier's check is a bank-issued check that represents guaranteed funds when negotiated. The bank is irrevocably committed to paying the cashier's check. Cashier's checks are sold to CCB clients only.

Regulation CC considers these items to be good funds. When a cashier’s check is presented for deposit there are limits to the hold period allowed. If a cashier’s check is deposited in person into an account held by the payee and there are no indications that the check is fraudulent, normally the funds must be available by the next day. 

Certified Checks

A Certified check is a form of check where the bank verifies that there are sufficient funds in the account to cover the check. The bank then certifies the funds at the time the check is written. Only an officer or other authorized employee of the bank can sign off on a certified check.  To certify a signature you must determine that:

1. The signature of the drawer on the check is genuine
2. The bank has set aside funds that are equal to the amount of the check 
3. The bank pays the check upon presentment

Checks Drawn on Foreign Banks 

Checks drawn on foreign banks are checks drawn on banks in foreign countries. These checks are not subject to Regulation CC. 

Date of Deposit

The date of deposit is the date a deposit is made to an account. Deposits made in a night depository have a date of deposit on the next business day the depository is opened. CCB ATM's transactions are subject to a 10am ET cutoff time.  Deposits made at an ATM before the cutoff time are deposited on the same day. Deposit made after the cutoff time have a date of deposit for the following business day.

Hold Period 

The hold period is the period between when funds are deposited and when funds become available to the depositor. If CCB does not place a hold, funds are available the following banking day.

Funds held by the bank are not available for withdrawal because they are considered uncollected funds. Under Regulation CC, hold periods are defined as the number of business days after the date of deposit. 

Note: Regulation CC requires CCB to disclose either the date the funds are available or the length of the hold; CCB has chosen to provide both. 

Insurance Draft

Insurance drafts that are payable at CCB are considered cash items and subject to Regulation CC. Insurance drafts that are not payable through CCB are not cash items and are not subject to Regulation CC.

Local Check

A local check is a check payable in the same Federal Reserve check-processing region. All checks drawn on financial institutions in the United States are processed in one Federal Reserve check-processing region, known as the Federal Reserve Bank of Cleveland.

• For the purpose of Regulation CC, these checks are defined as local checks when calculating check availability
• The United States, for Regulation CC purposes, include Puerto Rico, US Virgin Island, American Samoa, Guam, and Northern Mariana Island

New Account

A new account is an account that has been open for less than 30 days. As a limited exception, a newly opened account is not a new account if each holder has had another transaction account at the bank for at least 30 days prior to opening the new account (for example: a Demand Deposit Account DDA or NOW account).

New accounts are subject to different rules for the availability schedules and significantly longer holds are permitted, due to the greater risk to the bank. CCB policy is to place a 9-day hold on new accounts. 

Non-Cash Items   

Non-cash items include:

• Foreign bank checks 
• Insurance drafts payable through a bank
• Drafts drawn by a party other than the account owner (for example: drafts initiated by telemarketers or other persons, without the signature of our account holder, and supposedly based on telephone authorization by the account holder)
• Checks that are drawn on an unusual medium which is not commercially reasonable

Non-cash items are not subject to Regulation CC and therefore can be sent for individual collection or can be held for any amount of time desired by the bank. Due to the length of time it would take these items to go through the collection process, non-cash items present a special risk to the bank if they are not identified and held for an appropriate conservative period or placed for collection.

Any CCB associate that is unsure about any checks presented for a deposit should obtain approval from their Teller Experience Supervisor or Client Experience Manager before accepting the deposit. If further review is needed, contact SupportU.

Repeated Overdrafts 

An account is considered to have Repeated Overdrafts (ODs) if at least one of the following applies:

• An OD balance on 6 or more days in the past 6 months
• An OD balance of more than $5,525 was overdraft on 2 or more days in the past 6 months 

                      

Travelers Check

A traveler's check is a paper document that can be used like a standard paper check or cash. A travelers check is for a prepaid fixed amount so that the purchaser can use it to buy goods and services when traveling.

A Traveler's Check:

• Is drawn on or payable through or at a bank
• Is designated on its face by the term traveler's check or by any substantially similar term, or is commonly known and marketed as a traveler's check by a corporation or bank that issues traveler's checks
• Provides for a specimen signature of the purchaser to be completed at the time of purchase
• Provides for a countersignature of the purchaser to be completed at the time of negotiation