Introduction: Regulation CC (Funds Availability Disclosures)

This section will describe the requirements of Regulation CC (the funds availability regulation) that apply to you at the time of account opening. We will discuss the requirement that you provide certain depositors with an initial disclosure of your funds availability policy, going into detail about the format, timing and content of that disclosure. Other requirements of Regulation CC, such as time limitations on the availability of different categories of deposits, exceptions to those time limitations, subsequent disclosure requirements, check-return procedures, etc., are explained in Part II of this manual, in the sections dealing with ongoing responsibilities under Regulation CC.

If you are changing your funds availability policy and you are not very familiar with Regulation CC, you might want to consider reading at this time the sections in Part II to learn about the maximum availability time periods and more about the impact of the Final Rule. This Part I section alone will not give you all the information you need to decide on a policy. It is limited to how you disclose your policy, whatever it might be.

A number of states have laws regulating funds availability and the disclosure of funds availability policies. Parts of these laws are preempted by the federal rules, but other parts are not. The parts that remain affect areas such as the types of accounts subject to funds availability rules, the types of deposits subject to the rules, the nature of disclosures to be given to customers, and the time periods in which deposits must be made available. In a section in Part II of this manual, we deal with the superimposition of the federal law over each of these state laws, and we recommend that you examine that section if your state has a funds availability law. This section, however, deals only with the federal rules.