State Preemption Determinations

At this time preemption determinations have been made for the following states:
  • California, including separate determinations of the laws and regulations for Commercial Banks and Branches of Foreign Banks; Savings Institutions; and Credit Unions and Industrial Loan Companies
  • Connecticut
  • Illinois
  • Maine
  • Massachusetts
  • New Jersey
  • New York
  • Rhode Island
  • Wisconsin

Again, these determinations are found in Appendix F to 12 CFR 229.

Montana

Montana’s funds availability law (Mont. Rev. Codes Ann., Section 32-1-440) requires that depositary banks provide written disclosures of their funds availability policies to customers prior to account opening, post a notice pf these policiesat each branch, ATM, and any other device that accepts deposits. The law also mandates that any deposit slip, envelope, or other printed form provided by the institution and used in connection with deposits must contain the following notice, printed conspicuously: “Your deposit may not be available for immediate withdrawal. Consult posted notices for further information.”

In the preemption determinations that the Federal Reserve Board has issued so far, the Board has generally decided that state-law disclosure rules continue to apply unchanged to account types to which the state law applies but to which Regulation CC does not. As to account types to which Regulation CC does apply, state-law disclosure rules are preempted. The Montana law applies to “deposit accounts,” and the term is not defined in the statute. To be safe, an institution almost has to assume that the Montana rules apply to all types of deposit accounts, including transaction accounts, savings accounts, and time deposits. This means that the Montana rules would continue to apply unchanged to savings accounts and time deposits. But they would not apply to transaction accounts subject to Regulation CC since the state rules would be preempted by Regulation CC.

From a practical standpoint, if our assumptions are correct, you will have to continue to give funds availability disclosures to persons opening savings accounts and time deposits. If your availability policy for savings accounts and time deposits is the same as for transaction accounts, you could probably use the same forms you use to comply with Regulation CC, since the detailed disclosure required by Regulation CC would certainly seem to meet the requirements of the Montana statute.

You will also have to continue to post your policy with respect to savings accounts and time deposits at offices and ATMs. Regulation CC has a posting requirement that is somewhat less stringent than the Montana posting rule (the Montana posting must include your cut-off time, if you have one), but, again assuming your policy is the same for savings accounts and time deposits as for transaction accounts, a posting designed to comply with the Montana law would probably satisfy Regulation CC.