EXPEDITED FUNDS AVAILABILITY ACT 1 TITLE VI-EXPEDITED FUNDS AVAILABILITY SEC. 601. [12 U.S.C. 4001 nt.] SHORT TITLE. This title may be cited as the "Expedited Funds Availability Act". SEC. 602. [12 U.S.C. 4001] DEFINITIONS. For purposes of this title (1) ACCOUNT.-The term "account" means a demand deposit account or other similar transaction account at a depository institution. (2) BOARD.-The term "Board" means the Board of Governors of the Federal Reserve System. (3) BUSINESS DAY.-The term "business day" means any day other than a Saturday, Sunday, or legal holiday. (4) CASH.-The term "cash" means United States coins and currency, including Federal Reserve notes. (5) CASHIER'S CHECK.-The term "cashier's check" means any check which— (A) is drawn on a depository institution; (B) is signed by an officer or employee of such depository institution; and (C) is a direct obligation of such depository institution. (6) CERTIFIED CHECK.-The term "certified check" means any check with respect to which a depository institution certifies that (A) the signature on the check is genuine; and (B) such depository institution has set aside funds which (i) are equal to the amount of the check; and (7) CHECK.-The term "check" means any negotiable demand draft drawn on or payable through an office of a depository institution located in the United States. Such term does not include noncash items. (8) CHECK CLEARINGHOUSE ASSOCIATION.-The term "check clearinghouse association" means any arrangement by which participant depository institutions exchange deposited checks on a local basis, including an entire metropolitan area, without The Expedited Funds Availability Act was enacted as title VI of the Competitive Equality Banking Act of 1987. using the check processing facilities of the Federal Reserve System. (9) CHECK PROCESSING REGION.-The term "check processing region" means the geographical area served by a Federal Reserve bank check processing center or such larger area as the Board may prescribe by regulations. (10) CONSUMER ACCOUNT.-The term "consumer account" means any account used primarily for personal, family, or household purposes. (11) DEPOSITORY CHECK.-The term "depository check" means any cashier's check, certified check, teller's check, and any other functionally equivalent instrument as determined by the Board. (12) DEPOSITORY INSTITUTION.-The term "depository institution" has the meaning given such term in clauses (i) through (vi) of section 19(b)(1)(A) of the Federal Reserve Act. Such term also includes an office, branch, or agency of a foreign bank located in the United States. (13) LOCAL ORIGINATING DEPOSITORY INSTITUTION.—The term "local originating depository institution" means any originating depository institution which is located in the same check processing region as the receiving depository institution. (14) NONCASH ITEM.-The term "noncash item" means— (A) a check or other demand item to which a passbook, certificate, or other document is attached; (B) a check or other demand item which is accompanied by special instructions, such as a request for special advise of payment or dishonor; or (C) any similar item which is otherwise classified as a noncash item in regulations of the Board. (15) NONLOCAL ORIGINATING DEPOSITORY INSTITUTION.— The term "nonlocal originating depository institution" means any originating depository institution which is not a local depository institution. (16) PROPRIETARY ATM.-The term "proprietary ATM" means an automated teller machine which is (A) located (i) at or adjacent to a branch of the receiving depository institution; or (ii) in close proximity, as defined by the Board, to a branch of the receiving depository institution; or (B) owned by, operated exclusively for, or operated by the receiving depository institution. (17) ORIGINATING DEPOSITORY INSTITUTION.-The term "originating depository institution" means the branch of a depository institution on which a check is drawn. (18) NONPROPRIETARY ATM.-The term "nonproprietary ATM" means an automated teller machine which is not a proprietary ATM. (19) PARTICIPANT.-The term "participant" means a depository institution which (A) is located in the same geographic area as that served by a check clearinghouse association; and (B) exchanges checks through the check clearinghouse association, either directly or through an intermediary. (20) RECEIVING DEPOSITORY INSTITUTION.-The term "receiving depository institution" means the branch of a depository institution or the proprietary ATM in which a check is first deposited. (21) STATE.-The term "State" means any State, the District of Columbia, the Commonwealth of Puerto Rico, or the Virgin Islands. (22) TELLER'S CHECK.-The term "teller's check" means any check issued by a depository institution and drawn on another depository institution. (23) UNITED STATES.-The term "United States" means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands. (24) UNIT OF GENERAL LOCAL GOVERNMENT.-The term "unit of general local government" means any city, county, town, township, parish, village, or other general purpose political subdivision of a State. (25) WIRE TRANSFER.-The term "wire transfer" has such meaning as the Board shall prescribe by regulations. SEC. 603. [12 U.S.C. 4002] EXPEDITED FUNDS AVAILABILITY SCHEDULES. ITS. (a) NEXT BUSINESS DAY AVAILABILITY FOR CERTAIN DEPOS (1) CASH DEPOSITS; WIRE TRANSFERS.-Except as provided in subsection (e) and in section 604, in any case in which (A) any cash is deposited in an account at a receiving depository institution staffed by individuals employed by such institution, or (B) funds are received by a depository institution by wire transfer for deposit in an account at such institution, such cash or funds shall be available for withdrawal not later than the business day after the business day on which such cash is deposited or such funds are received for deposit. (2) GOVERNMENT CHECKS; CERTAIN OTHER CHECKS.-Funds deposited in an account at a depository institution by check shall be available for withdrawal not later than the business day after the business day on which such funds are deposited in the case of (A) a check which and (i) is drawn on the Treasury of the United States; (ii) is endorsed only by the person to whom it was issued. (B) a check which (i) is drawn by a State; (ii) is deposited in a receiving depository institution which is located in such State and is staffed by individuals employed by such institution; (iii) is deposited with a special deposit slip which indicates it is a check drawn by a State; and (iv) is endorsed only by the person to whom it was issued; (C) a check which (i) is drawn by a unit of general local government; (ii) is deposited in a receiving depository institution which is located in the same State as such unit of general local government and is staffed by individuals employed by such institution; (iii) is deposited with a special deposit slip which indicates it is a check drawn by a unit of general local government; and (iv) is endorsed only by the person to whom it was issued; (D) the first $100 deposited by check or checks on any one business day; (E) a check deposited in a branch of a depository institution and drawn on the same or another branch of the same depository institution if both such branches are located in the same State or the same check processing region; (F) a cashier's check, certified check, teller's check, or depository check which (i) is deposited in a receiving depository institution which is staffed by individuals employed by such institution; (ii) is deposited with a special deposit slip which indicates it is a cashier's check, certified check, teller's check, or depository check, as the case may be; and (iii) is endorsed only by the person to whom it was issued. (b) PERMANENT SCHEDULE.— (1) AVAILABILITY OF FUNDS DEPOSITED BY LOCAL CHECKS.— Subject to paragraph (3) of this subsection, subsections (a)(2), (d), and (e) of this section, and section 604, not more than 1 business day shall intervene between the business day on which funds are deposited in an account at a depository institution by a check drawn on a local originating depository institution and the business day on which the funds involved are available for withdrawal. (2) AVAILABILITY OF FUNDS DEPOSITED BY NONLOCAL CHECKS. Subject to paragraph (3) of this subsection, subsections (a)(2), (d), and (e) of this section, and section 604, not more than 4 business days shall intervene between the business day on which funds are deposited in an account at a depository institution by a check drawn on a nonlocal originating depository institution and the business day on which such funds are available for withdrawal. (3) TIME PERIOD ADJUSTMENTS FOR CASH WITHDRAWAL OF CERTAIN CHECKS. (A) IN GENERAL.-Except as provided in subparagraph (B), funds deposited in an account in a depository institution by check (other than a check described in subsection (a)(2)) shall be available for cash withdrawal not later than the business day after the business day on which such funds otherwise are available under paragraph (1) or (2). |