Funds Availability Policy
REGULATION CC: FUNDS AVAILABILITY ACT POLICY (Updated 02-15-2017)
It is the policy of Resource Bank (the “Institution”) to comply with all provisions of Regulation CC, the Expedited Funds Availability Act (the EFA Act) and the Check Clearing for the 21st Century Act (Check 21 Act). It is the policy of the Institution to make funds available for withdrawal in accordance with the time frames as set forth in Regulation CC. Check 21 governs the conversion of an originally issued paper check to a substitute check and mandates the acceptance of them as the legal equivalent of the original check. It is also the policy to comply with the Interagency Guidance Regarding Deposit Reconciliation Practices to ensure that the bank’s credit discrepancies are reconciled quickly so that customers are provided timely access to the correct amount of funds deposited.
DEFINITIONS
For purposes of this policy, the following
definitions shall apply:
- Banking Day – Any day on which the Institution is open to the public for substantially all of its banking functions.
- Business Day – Calendar days other than Saturday, Sunday and Federal holidays.
EXPEDITED FUNDS
AVAILABILITY ACT
It is the policy of the
Institution to provide next day availability for withdrawal in
accordance with Regulation CC.
NEXT DAY AVAILABILITY
The following
items shall be available for withdrawal not later than the
business day following the banking day of deposit:
• Cash deposits;
• Electronic
payments – available as stated above when received;
• U.S.
Treasury checks;
• U.S. Postal Service money orders;
•
Federal Reserve Bank or Federal Home Loan Bank checks;
•
State and local government checks;
• Cashier’s, certified or
teller checks; and
• Checks drawn on-us.
LOCAL CHECKS
It is the policy of the
Institution to make deposits of local checks available for
withdrawal not later than the second business day following the
banking day of deposit. In accordance with Regulation CC and as
mandated by the Dodd-Frank Act, we will make available by the
next business day after the banking day of deposit the lesser of
$200 or the aggregate amount of the deposited funds not subject
to next day availability.
LONGER DELAYS
With regard to deposited
items for which we may determine a longer hold is deemed
necessary, it is the policy of the Institution to require a case
by case or exception hold as determined appropriate according to
the make-up of deposited items and to provide the appropriate
hold notice.
NEW
ACCOUNTS
An account is considered a new
account during the first 30 days after it is established. An
account would not be considered new if all of the account
holders had previously established accounts, held for at least
30 days, with our institution. On next day items, the first
$5,000 of a deposit shall be made available by the next business
day following the banking day of deposit. Remaining funds over
$5,000 deposited on any one banking day shall be available not
later than the ninth (9th) business day following the banking
day of deposit. On local items, funds will be available no later
than the eleventh (11th) business day following the banking day
of deposit.
CHECK 21
It is the policy of the Institution to recognize
substitute checks are the legal equivalence of an original check
for all persons and purposes. The Institution will provide the
required notices as directed by Regulation CC. The Institution
will comply with the requirements established for reconverting
items.
ENFORCEMENT & OVERSIGHT
The primary responsibility for ensuring
compliance with this policy and its operating procedures rests
with the Board of Directors and each employee. Any change to
this policy must be approved by the Board of Directors. The
Board shall also review and approve this policy each year for
any changes that may be necessary to ensure the Institution’s
compliance and for risk mitigation. Senior Management is
responsible for ensuring appropriate directives are implemented
and administered in compliance with the approved policy. Changes
to any corresponding operating procedures may be approved by the
Compliance Officer and/or appropriate senior manager over the
impacted area. Changes to any corresponding deposit
reconciliation procedures may be approved by the Compliance
Officer or appropriate senior manager over the impacted area. It
is the responsibility of each employee and director to comply
with this policy and any applicable laws, rules, regulations,
and, if appropriate, regulatory issued guidance.
AUDIT AND MONITORING
Periodically, the Institution's Compliance Officer
shall audit the Institution’s compliance with this policy and
report the results of such audit to the Board of Directors.
TRAINING
The Institution’s Compliance Officer shall coordinate with
senior management to ensure appropriate training to new and
existing employees.
RECORD RETENTION
The Institution will comply with the retention
requirements set forth in the applicable regulations.