It appears to me that putting a banks cutoff time is not required by Reg CC. However, if a bank does put cutoff times on their initial Reg CC notice/disclosure they have to send 30-day notice to all consumer customers if the bank is changing their cutoff time.

1. Do you agree or disagree?

In 229.18(e) of the commentary it states:
Changes in Policy
"This paragraph requires banks to send notices to their customers when the banks change their availability policies with regard to consumer accounts. A notice may be given in any form as long as it is clear and conspicuous. ............"

We have listed the cutoff time on the disclosure. So based on 229.18(e) it appears that we can notify consumer customers of the change by inserting a message onto their statements.

2. Do you agree or disagree?

Can the statement message be as simple as "Effective 9-1-04 the Bank's cutoff time is changing to 2:30pm daily".

3. Yes or no. If no, do you have a cite that you can refer me to?

4. Lastly, a Bank Holding Company owns several separately chartered banks that all have the same name. Each bank can accept deposits for one another, have the same availability policy, and each Bank's cutoff times are listed separately on the disclosure.

Would the change notice have to go to all of those consumer customers because potentially one customer of one of the separately chartered banks could go to the bank that has the change in cutoff times?

What about the customers of other BHC banks that are on different availability notices....they wouldn't need to receive the above change notice would they?

Any assistance with this is appreciated. Thank you in advance.

1. If you have a cutoff time, it needs to be included in your disclosure. If you change your cutoff time, you must give your customers 30-day notice of the change.

2. There are no specific requirements as to how customers must be notified. Therefore, I see no reason why you could not use a statement message.

3. Yes, that language is ok. I would prefer CHANGE IN TERMS: "Effective 9/1/2004, deposits received after 2:30 PM will be processed as if received the next business day."

See 229.18(e)

4. I think you have to send the change to everybody. I would have a different opinion if the specific cutoff times for each bank were not listed in the disclosure. Listing the specific cutoff times is the determinant for me on sending the disclosure change to the other bank customers in your BHC.

It does not state what constitutes disclosure. Something as simple as a teller sign or lobby sign stating the change could be sufficient. I also think you would want to post this same message in each bank.