CUCE DEPOSIT REGULATIONS NEW UPDATE
WITH COMPLETE SOLUTION
What is the primary purpose of the Expedited Funds Availability Act (EFAA) and
Regulation CC? - CORRECT ANSWER - To require depositary financial institutions to
speed up (expedite) the availability of funds to depositors from their deposited checks
The major requirements of the Expedited Funds Availability Act and Regulation CC for
your credit union are - CORRECT ANSWER - disclose funds availability policies, adhering
to funds availability hold periods, expedite the return of unpaid checks to the depositary
financial institution
Generally when must funds be made available when funds are deposited at a
nonproprietary ATM? - CORRECT ANSWER - By the 5th business day
What must an exception hold notice have on it? - CORRECT ANSWER - Deposit Date,
amount held, and reason for hold
What is the test for "repeated overdraft exception"? - CORRECT ANSWER - Having a
negative balance on 6 or more banking days in the last 6 months
When an exception hold is placed on a deposit, must the credit union notify the Member?
- CORRECT ANSWER - Yes
When must an On-us check be given next-day availability? - CORRECT ANSWER -
Always unless deposited at a non-proprietary ATM
How long is an account considered new per Reg CC? - CORRECT ANSWER - 30 Days
When are Credit Unions required to provide their funds availability policy? - CORRECT
ANSWER - Prior to opening the account
How must a Credit Union provide the funds availability policy? - CORRECT ANSWER -
In a clear & Conspicuous manner, in writing, in a form they can keep, and describe the
specific policy of all deposited funds.
Regulation CC requires credit unions to post their funds availability policy or provide a
notice regarding their policy at proprietary ATMs they own or operate. This notice may be
, printed on the receipt the member receives after the deposit. - CORRECT ANSWER -
False
Explain why the EFAA & Reg CC changed the indorsement standards for all depositary
and collecting financial institutions? - CORRECT ANSWER - To identify the depositary
institution that took the check for deposit.
When is the Check 21 substitute check notice required? - CORRECT ANSWER - When
a deposited check is returned to the Credit Union as a substitute check.
When a new account is opened by mail when must the initial funds availability notice be
mailed? - CORRECT ANSWER - within 1 business day after the account is opened.
Who must be provided disclosures? - CORRECT ANSWER - Just to one account owner
(doesn't have to be to all joints)
Under Check 21 a substitute check can be generated (created) by a financial institution
in any size - CORRECT ANSWER - False- must be standard size
In general, Regulation CC requires that funds from certain types of deposits be given
next-day availability. List the eight types of deposits named in the regulation. - CORRECT
ANSWER - -Cash deposits made at a teller station
-Electronic payments
-US Treasury Checks
-US Postal money orders
-FRB Checks
-State & Local Checks
-Cashiers checks
-On-us checks deposited at a branch
A notice that funds deposited to an account may not be immediately available must be
posted at all ATMs where deposits can be made. What is the timing for this notice and
what are three ways the notice can be given? - CORRECT ANSWER - The notice must
be given before the deposit is made and can be 1) posted on a sign at the ATM, 2) be
shown on the ATM screen, and 3) be printed on deposit envelopes provided at the ATM
When must the funds from local checks be available for withdrawal? - CORRECT
ANSWER - 2nd banking day following day of deposit
WITH COMPLETE SOLUTION
What is the primary purpose of the Expedited Funds Availability Act (EFAA) and
Regulation CC? - CORRECT ANSWER - To require depositary financial institutions to
speed up (expedite) the availability of funds to depositors from their deposited checks
The major requirements of the Expedited Funds Availability Act and Regulation CC for
your credit union are - CORRECT ANSWER - disclose funds availability policies, adhering
to funds availability hold periods, expedite the return of unpaid checks to the depositary
financial institution
Generally when must funds be made available when funds are deposited at a
nonproprietary ATM? - CORRECT ANSWER - By the 5th business day
What must an exception hold notice have on it? - CORRECT ANSWER - Deposit Date,
amount held, and reason for hold
What is the test for "repeated overdraft exception"? - CORRECT ANSWER - Having a
negative balance on 6 or more banking days in the last 6 months
When an exception hold is placed on a deposit, must the credit union notify the Member?
- CORRECT ANSWER - Yes
When must an On-us check be given next-day availability? - CORRECT ANSWER -
Always unless deposited at a non-proprietary ATM
How long is an account considered new per Reg CC? - CORRECT ANSWER - 30 Days
When are Credit Unions required to provide their funds availability policy? - CORRECT
ANSWER - Prior to opening the account
How must a Credit Union provide the funds availability policy? - CORRECT ANSWER -
In a clear & Conspicuous manner, in writing, in a form they can keep, and describe the
specific policy of all deposited funds.
Regulation CC requires credit unions to post their funds availability policy or provide a
notice regarding their policy at proprietary ATMs they own or operate. This notice may be
, printed on the receipt the member receives after the deposit. - CORRECT ANSWER -
False
Explain why the EFAA & Reg CC changed the indorsement standards for all depositary
and collecting financial institutions? - CORRECT ANSWER - To identify the depositary
institution that took the check for deposit.
When is the Check 21 substitute check notice required? - CORRECT ANSWER - When
a deposited check is returned to the Credit Union as a substitute check.
When a new account is opened by mail when must the initial funds availability notice be
mailed? - CORRECT ANSWER - within 1 business day after the account is opened.
Who must be provided disclosures? - CORRECT ANSWER - Just to one account owner
(doesn't have to be to all joints)
Under Check 21 a substitute check can be generated (created) by a financial institution
in any size - CORRECT ANSWER - False- must be standard size
In general, Regulation CC requires that funds from certain types of deposits be given
next-day availability. List the eight types of deposits named in the regulation. - CORRECT
ANSWER - -Cash deposits made at a teller station
-Electronic payments
-US Treasury Checks
-US Postal money orders
-FRB Checks
-State & Local Checks
-Cashiers checks
-On-us checks deposited at a branch
A notice that funds deposited to an account may not be immediately available must be
posted at all ATMs where deposits can be made. What is the timing for this notice and
what are three ways the notice can be given? - CORRECT ANSWER - The notice must
be given before the deposit is made and can be 1) posted on a sign at the ATM, 2) be
shown on the ATM screen, and 3) be printed on deposit envelopes provided at the ATM
When must the funds from local checks be available for withdrawal? - CORRECT
ANSWER - 2nd banking day following day of deposit
