Reg CC - State Check

Paragraph 229.10(c)(1)(iv) of Reg CC states:

(iv) A check drawn by a state or a unit of general local government and deposited--
(A) In an account held by a payee of the check;
(B) In a depositary bank located in the state that issued the check, or the same state as the unit of general local government that issued the check ...

The location of the branch of the bank accepting the check for deposit is the key. Whether you send your checks to a Federal office in District 7 or District 3 doesn't affect the definition. If your branch is in Oklahoma, a check drawn by the state of Oklahoma or a unit of general local government within Oklahoma would be considered a state check under that paragraph. If your branch is located in the northern portion of New Mexico, checks drawn by the state of New Mexico or its units of general local government would be state checks for your branch. If you have branches in more than one state, remember that the state check next-day availability requirement depends on the location of the specific branch accepting the check for deposit, not on the location of your main office or operations center. If you have branches in both Kansas and Colorado, the Kansas branches have to accept Kansas checks, and the Colorado branches have to accept Colorado checks as next day items (or you could elect to have branches in both states accept checks from both states as next-day items).

First published on BankersOnline.com 6/16/08