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.
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.
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.
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.
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.
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.
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.
The Institution’s Compliance Officer shall coordinate with senior management to ensure appropriate training to new and existing employees.
The Institution will comply with the retention requirements set forth in the applicable regulations.