Answer:
You are correct in noting that the availability schedule at 12 CFR 229.12(f) allows you to hold funds deposited in a nonproprietary ATM until the fifth business day following the banking day of deposit. The normal requirement that you make the first $100 available on the following business day does not apply. Your disclosure must reflect the practice. The model clause is C9, but the commentary indicates you must go further and assist your customer in identifying proprietary ATMsDeposits at proprietary ATMs generally are treated as deposits at banking offices. Funds from items deposited to proprietary ATMs are available according to the terms of the disclosure you distributed to your customers.
However, in evaluating specific deposits, you may delay availability when scheduled availability is conditioned on "in person, to an employee" deposits. For example, cash deposited in person, to an employee is a next day availability item. That same cash, deposited to a proprietary ATM, can be a second business day availability item. A cashiers check deposited to a payee's account is subject to the same analysis. Local and nonlocal checks are available according to the terms of your disclosure regardless of whether they are deposited to an ATM or in person to an employee.
To help, it would be necessary to know how your losses are occurring, but 12 CFR 229.19(a)(4) may be useful to you if the problem arises from the fact that deposits are not removed daily from certain ATMs:
(4) Funds deposited at an ATM that is not on, or within 50 feet of, the premises of the depositary bank are considered deposited on the day the funds are removed from the ATM, if funds normally are removed from the ATM not more than two times each week…
First published on BankersOnline.com 11/5/01
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