My bank has a question regarding the bank’s disclosure for large deposits under Regulation CC (Expedited Funds Availability Act).
QEffective July 1, 2025, the bank will begin placing statutory holds on all deposits. The bank would like to have its core automatically apply a hold on check deposits totaling more than $6,725 on any one day. The bank would like to disclose this in its account opening disclosures rather than providing a notice each time it places a hold. May the bank do this?
A No, except for non-consumer accounts.
The requirements for exception hold notices are spelled out in §229.13(g)(1), which states, in part, that “when a depositary bank extends the time when funds will be available for withdrawal based on the application of an exception contained in paragraphs (b) [the large dollar exception] through (f) of this section, it must provide the depositor with a written notice.” Section 229.13(g)(1) provides that the notice must be provided to the depositor “at the time of the deposit,” with exceptions if the deposit is not made in person or a decision to place the hold is made after the deposit.
The bank cannot “disclose” that obligation away with a blanket disclosure.
However, a one-time notice provided about the large dollar exception (and redeposited checks) is an option for non-consumer accounts under §229.13(g)(2). This notice may be provided at any time so long as it is provided before an exception is applied.
For more information, contact ABA’s Leslie Callaway.
Please note that this section is not a substitute for professional legal advice.
