Answer:
Answer by Brian Crow: Section 229.2(a) of Reg CC defines an account as a "demand deposit account, a negotiable order of withdrawal account, a share draft account, an automatic transfer account, or any other transaction account described in 12 CFR 204.2(e)." At the federal level, Reg CC applies to your checking and NOW accounts. Some states have extended Reg CC coverage to savings and money market accounts, but not all, so each institution should check its state laws.
If your state law and your funds availability policy do not include money market accounts, then you may place whatever hold you deem appropriate. In the event the customer is opening a transaction account and the new account exception is not available because all signers have a checking or NOW account, you may still use one of the other exception reasons provided in section 229.13. Given the circumstances provided, I would recommend using the large item exception on $245,000 and providing $5,000 available to your customer next business day. This will help to protect the bank in the event the item is returned.
Answer:
Answer by John Burnett: To support and clarify Brian's comments:
Whether one or more of the owners of the account in question have savings, CD, IRA or other non-transaction accounts is irrelevant to whether you can treat the account in question as new, unless your state or your bank has pulled non-transaction accounts into Regulation CC coverage. If any one of the owners of the recently-opened account is not an owner of another transaction account that has been open in your bank for at least 30 days, you can consider the recently-opened account new.
Answer:
Answer by Ken Golliher: Hint: Regardless of the fact they call it a "new account" hold, it's actually a "new customer" hold. If there is no new customer involved; i.e. all of the account holders have had transactions accounts in the past, the hold isn't available to you even if it is mentioned in the disclosure.
First published on BankersOnline.com 3/26/12
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