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More "Non-local" Checks Under Reg CC
The
Federal Reserve Board
(FRB) will complete the changes to its check processing
infrastructure early next year. The changes have been ongoing for
more than a year. This last change assigns the Atlanta paper
check-processing center to Cleveland resulting in no checks being
considered “non-local” after that time. The FRB is expected to
communicate the effective date in the first quarter of 2010.
This
change will affect the funds availability policies of financial
institutions across the U.S. Before this change, institutions could
delay funds availability for five business days on non-local checks.
After this change, the longest standard delay that can be used will
be the two business day availability period that is currently
allowed for local checks (unless an exception hold applies which
would allow a seven business day hold.) An exception hold of 11
business days for non-local checks will no longer be available.
As
a result of this significant change, the National
Credit Union Administration (NCUA) is urging credit unions to
assess the impact of the amendment to Regulation CC (Funds
Availability) on their policies and schedules. Here are some
suggested steps to ensure your credit union is ready:
·
Review your funds availability policy and schedule. Make the required
changes.
·
Make required changes to the funds availability disclosures (e.g.,
eliminate the references to non local check holds, revise routing
numbers, etc.).
·
Notify members of the change within 30-days after implementation.
·
Update lobby posters.
·
Train tellers and teller supervisors.
For
more information, see http://edocket.access.gpo.gov/2009/pdf/E9-27189.pdf
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