No. Don't expect any for at least a while. Perhaps the Fed will comb through the regulation and revise the language to get rid of references to local/nonlocal checks and tweak the model forms. But the regulation still works the way it is written (at least as well as it ever has). You just have to make some changes to accommodate the fact that there won't be any nonlocal checks after 2/26/10.

and hopefully no checks, period, after 2/26/2011.

anyway I created a statement message that just fits our statement message parameters as follows and wanted anyone's opinion on whether it was sufficient.

DUE TO RESTRUCTURING BY THE FEDERAL RESERVE BANK, THE ENTIRE COUNTRY WILL
USE A SINGLE CHECK PROCESSING REGION. FOR THE PURPOSES OF REGULATION CC,
THERE WILL NO LONGER BE ANY CHECKS THAT ARE DEFINED AS NON-LOCAL, THESE
CHECKS WILL NOW BE DEFINED AS LOCAL WHEN CALCULATING CHECK AVAILABILITY.

anyway if all agree that it is fine, feel free to copy and use at your own risk.<g>

Regards,
CJ

If you are a case-by-case bank and used the model disclosure from Appendix C, i.e., Model C-3, there is no mention of local and non-local checks, so I am not sure how the above change of terms notice relates to the original disclosure provided to the customer?

The only reason to provide a notice is to give the customer information that might be meaningful. The proposed statement message tells me, your customer, squat. Talk to me about how it affects me as a customer.

We have always used the C-2 availability policy disclosure with next business days after the date of deposit for both our lobby posters and early disclosure. We use the case-by-case notice. I don’t see any need to change any of our notice/disclosures or mail anything to our customers what am I missing?

I'll chime in too. Our general policy is to provide next day availability. That is unaffected by the Reg CC change. We disclose the special rule for new accounts. That is also unaffected by the Reg CC change. Lastly, we utilize case-by-case and "safeguard" exceptions. The ARE affected by the Reg CC change, and I've ordered new disclosures.

However, I fail to see why we need to provide any further disclosure of the change, be it a mailer or a statement blurb. The commentary to 229.18(e) (where it talks about providing 30 days notice after the fact) says "A bank is not required to give a notice when there is a change in Appendix B (reduction of schedules for certain nonlocal checks)." Appendix B doesn't really exist anymore, but isn't the "reduction of schedules" what is going on here? I'm feeling very dense!

The exception was carved out only for Appendix B. You can't port it over to cover changes in policy (as would be the case if your bank decided to consider all banks local before you have to) or changes in lobby and account disclosures (as you've noted).

Well phooey. Thanks for the clarification John!

I never stated that we were a case by case bank, sorry if you thought so, we are not, our disclosure that is posted in the branch specifically defines local (even listing all the routing number prefixes) and non local checks so I don't agree that the statement message proposed above tells the customer squat, it tells them that there will no longer be non-local checks and I think customers know what that means, at least the ones I have spoken with understand the meaning, they know a check currently drawn on a NY bank and deposited in a FL bank is non-local and they know the hold is 5 days...ok some think it is a 7 day hold but they know local checks is 2.

I have limited space in the statements message so I can't be very descriptive, I wanted to stay away from mentioning 2 days, 5 days etc because when exception extentions are added those days change, and again I didn't have the space for it anyway. The message does not show it but I did include the implementation date of 2/27/10 and again, it is a general message that states what is going to happen (no more non-local checks), when (2/27/10) and why(because the Fed wants it that way<g>), and the bank decided to use the least expensive, most efficient method of communication that would reach all DDA account holders within a short period of time, whether any type of global customer notification is required or not.

Will our branch signs be updated, yes, will our new account disclosure documents be updated, yes, is the bank required to send a notice to each current customer regarding the change...I don't know but at least they have the statement message, if they even read it.<g>

Regards,
cj

This is what we put as a statement message

Effective February 27, 2010, our Funds Availability Policy will be changing. Availability on some items has been shortened. Our policy generally is to allow you to withdraw funds deposited in your account on the same day we receive your deposit. In some cases, we may delay your ability to withdraw funds beyond the day of deposit. Then, the funds will generally be available by the second business day after the day of deposit. Longer delays may apply in special circumstances. We will notify you if your funds will be delayed. You should ask us when your funds will be available for withdrawal.

We have a next day avialability policy, and use sample language in Appendix C-3. We are planning to use a statement message to notify our customers, but there are space restrictions. For those who use C-3, what do you think about the following:

Our policy is to make funds from check deposits available on the 1st business day after deposit. Depending on the type of check, funds can be delayed until the 2nd business day; 7th under special circumstances. (Does not apply to new accounts.)


Also, if we place a non-local case-by-case hold on 2/25/10 (the day before this goes into effect), can we still hold it until the 5th business day? Or, if we placed an exception hold on 2/12/10, would we still hold it for the full 11 buiness days since this would go past the effective date?

Thank you.

On your second question, yes, you can leave those holds in place. The change affects deposits received (as defined in the regulation) on or after March 1. If the deposit is received after cutoff on Friday, 2/26, it's received on March 1.