Question & Answer

Question: If we rarely place holds but want to be able to place case-by-case holds from time to time, what would be the easiest way to handle disclosures?

Answer: When it comes to Regulation CC, there is no easy way to place holds. However, some policies can reduce risk. For example, if your disclosures and posted notices state that your policy is to hold check deposits for the maximum permissible time for local and non-local checks, you wouldn't need to place case-by-case notices. Note: this would not relieve the requirement for notices when exception holds are placed!

The fact that you publicly disclose such a hold policy does not mean that you can't make funds available earlier. Deposit availability isn't subject to discrimination rules - not yet, anyway. True, some examiners might argue that your disclosures are not accurate. But Reg CC is directed at telling the customer how long they may have to wait to use funds deposited by check. Nothing prohibits the bank from making these funds available sooner - even if you don't tell the customer!

Copyright © 1998 Compliance Action. Originally appeared in Compliance Action, Vol. 3, No. 9, 7/98