Regulation CC is a banking regulation set forth by the Federal Reserve. In 1987 Congress passed the Expedited Funds Availability Act (EFAA) to address concerns about the length of holds that banking institutions can place on checks deposited. The EFAA established maximum permissible hold periods for checks and other deposits. Regulation CC (Reg CC) implements funds availability provisions.
Reg CC establishes the following requirements:
- Sets maximum times that banks can hold deposits of cash items
- Imposes disclosure requirements when accounts are opened or terms are changed
- Sets requirements for check endorsements
- Imposes a time frame in which checks must be paid or returned
See Holds Covered by Reg CC, Regulation CC Hold Calculator, or Funds Availability Chart for more information.
When to Apply Reg CC
Reg CC applies to business and consumer transaction accounts when they receive checks drawn on banks in the United States. For Reg CC purposes, the United States includes Puerto Rico, the US Virgin Islands, American Samoa, Guam, and the Northern Mariana Islands.
Reg CC applies to cash items which are negotiable checks or items of a type that a bank accepts for deposit in the ordinary course of business. These items are described as being commercially reasonable. This includes personal checks, cashier's checks, US postal money orders, traveler's checks, and so forth. Reg CC allows us to give immediate credit or place a hold giving deferred availability according to the Funds Availability schedule. We can also place a longer hold on an emergency basis.
When Reg CC Does Not Apply
Reg CC does not apply to non-cash items, such as checks drawn on banks located outside of the United States, 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 the account holder, and supposedly based on telephone authorization by the account holder), and checks drawn on an unusual medium that is not commercially reasonable.
Note: If you are unsure about a check that is presented for deposit, obtain approval from your office’s Lead Teller or Client Experience Manager before accepting the deposit. If further review is needed, contact SupportU.
When to Use Reg CC
CCB associates must use the Reg CC guidelines when placing holds on savings and Money Market Deposits (MMD) accounts to protect clients and the bank. Checks from foreign countries for $500.00 or more, are sent for collection rather than placing a hold on them.