I just want to make sure I understand this correctly. Reg CC does not apply to savings accounts. If a customer deposits a check into his savings account and we want to make sure it clears before he has an opportunity to spend the money,we can place a hold, but it is not to be presented as a Reg CC hold. My understanding is that we can use a hold form and write "Not a Reg CC hold" on it, or we can place a hold and give the customer no notice of the hold. I am in the middle of a Reg CC review and just realized (after telling the tellers what a good job they're doing) some of the holds I thought were very properly placed were placed on deposits to savings accounts. Now what do I do? What do other banks do as far as placing holds on savings accounts?

It is a common practice internally to apply Reg. CC to savings account, but the choice is yours as it does not apply by regulatory authority.

Except, of course, in states like Massachusetts, where legislation applies the federal rules to savings accounts, too. And, for good measure, they have defined "local check" to be that same as for the federal rule, plus any other check drawn on a bank located in the commonwealth.

So, we can place holds on Savings Accounts just as we would on a DDA under CC. Should we file these separately and not produce them when the examiner asks to look at Reg CC holds? Could we actually place holds for longer than Reg CC allows without getting into trouble?

Why aren't Savings Accounts covered by Reg CC?

I always forget you guys have that. Texas is easier in many ways. HELOC as an example; we just don't have them. It isn't that we have them and have our own rules, we just don't have 'em.

But we'll do other things our own way.

If placing a Reg. CC hold on a savings account is optional for your bank, (i.e. you are not required to do so by law) then it should first be disclosed to the customers that you will be doing so.

When we provide our examiners with "CC" notices, either we take out the savings related ones, or they ask for a particular period and we tell them savings are in that selection. They are clearly identified on our form. Because they are savings and "CC" doesn't apply by regulation, but by our policy, they will not not cite that as a violation of law. They could cite violations of our policy, but I haven't seen that.

I just want to second John's suggestion about checking state law. It isn't just Massachusetts, I believe there are six states with broader funds availability laws.

Ted, could you list the states, please. I'm sure many of us are wondering if we have the same list as you do.

Actually, I only have to deal with CA (which should be on the list), but others might want to compare lists.

While I can't guarantee this list is complete (and all other appropriate disclaimers) in addition to Mass. and California, Maine, Wisconsin, Connecticut and New York should be checked.

Savigs accounts and money market are not subject to Reg CC so if you place holds on those accounts, you do not have to provide the $100 next day availability. You may want to check your system to see how the holds are placed and if any constraints exist. Your system may be set up to automatically give the $100 next day on applicable accts but not on savings or MMDA's. Be sure your hold notice matches what you are actually holding. We use the same hold notices and have never had a problem with examiners. The notices are just completed differently as we hold the entire check deposit.

(This is really nga, not anonymous, I'm not logged in so that I'll be able to tell which threads I've read next time I log in.) Anyway, when you say we have to disclose to the customer we are placing a hold on their savings account, is that at the time of deposit, or does it need to be in a disclosure they receive when they open their savings account? I'm in Montana and I'm not aware of any state laws that may affect this. It wouldn't go in the Funds Availability Disclosure, becuase that's Reg. CC again.

If you wanted to apply "CC" against savings/time accounts, your Funds Availability Disclosure could simply indicate that this applies to all deposits.