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Midcoast FCU / Funds Availability Policy

Funds Availability Policy

Effective Date: 7.23.2024

Funds Availability Policy

The Expedited Funds Availability Act (EFAA), as implemented by Regulation CC, affects transaction and similar accounts that facilitate payments or transfers to third persons. This means that transaction accounts such as share draft accounts and business checking accounts are covered under the regulation, and that the Credit Union must follow the specified funds availability schedules, disclosure requirements, return rules, and other provisions. Accounts such as regular savings accounts, money market deposit accounts, and time deposits are not covered under the act. Regulation CC applies to both consumer and commercial accounts. Recognizing the importance of communicating to members when their funds will be made available to them, the Credit Union is dedicated to compliance with the requirements of Regulation CC and all other relevant state and federal law.

Funds Availability Policy

The purpose of this policy is to describe Midcoast Federal Credit Union’s check hold policy for transaction accounts. The Credit Union’s objective is to make funds available as expeditiously as good business practices mandate and, at times, may choose not to enforce check holds or use shorter holds. The length of delay is counted in business days from the business day of deposit. Every day is a business day except Saturdays, Sundays, and federal holidays. If a federal holiday falls on a Sunday, the next day is not a business day. The Credit Union considers a business day to end at 5:30 PM. The end of day open hours of operation may vary by location but will not be earlier than 4:30 PM. Any deposits made after the end of day or day we are not open, will be considered deposited on the following business day.

Initial Disclosure 

Before opening a new account, the Credit Union will provide members with a copy of the Funds Availability (Reg CC) Policy.

Other Disclosure Requirements

The Credit Union will also:

  • Provide a copy of the funds availability policy to a member who requests it.
  • Post a copy of the funds availability policy at every location where deposits are accepted, including ATMs. The Credit Union will also post the funds availability policy on its website on any page where accounts are opened.
  • Include on all preprinted deposit slips provided to members, a notice that deposits will not be made available immediately.
  • Notify members of changes to the funds availability policy at least 30 days prior to the change. If the change expedites the availability of the funds, the Credit Union may provide the notice 30 days after the change is implemented.

Same-Day Availability 

Funds from the following deposits will be made available on the next business day following the day of deposit:

  • Cash deposits not made in person at one of the Credit Union’s teller stations (e.g. deposited in a night depository)
  • U.S. Treasury checks made payable to the account holder, regardless of whether or not the check is deposited at a staffed teller station (e.g., if the deposit is made at a night depository)
  • Funds from government checks (local and state), if the check is made payable to the account holder and if the deposit is made in person to one of the Credit Union’s teller stations
  • Cashier’s checks, certified checks, and teller’s checks that are made payable to the account holder and if the deposit is made in person to one of the Credit Union’s teller stations
  • Federal Reserve Bank checks, Federal Home Loan Bank checks, and U.S. Postal money orders, if these items are payable to the account holder and if the deposit is made in person to one of the Credit Union’s teller stations

Next-Day Availability 

Funds from the following deposits will be made available on the next business day following the day of deposit: 

  • Cash deposits not made in person at one of the Credit Union’s teller stations (e.g. deposited in a night depository) 
  • U.S. Treasury checks made payable to the account holder, regardless of whether or not the check is deposited at a staffed teller station (e.g., if the deposit is made at a night depository) 
  • Funds from government checks (local and state), if the check is made payable to the account holder and if the deposit is made in person to one of the Credit Union’s teller stations 
  • Cashier’s checks, certified checks, and teller’s checks that are made payable to the account holder and if the deposit is made in person to one of the Credit Union’s teller stations 
  • Federal Reserve Bank checks, Federal Home Loan Bank checks, and U.S. Postal money orders, if these items are payable to the account holder and if the deposit is made in person to one of the Credit Union’s teller stations 

The Credit Union will make the first $225 from a deposit of checks not subject to same-day or next-day availability available on the first business day after the day of deposit, i.e. next-day availability. The remaining funds will be made available on the second business day after the day of the deposit, i.e. second-day availability. This first $225 availability does not apply to funds deposited at a nonproprietary ATM.

Second-Day Availability 

Any cash deposits not made in person to one of the Credit Union’s teller stations or check deposits not subject to same-day or next-day availability will be made available on the second business day after the day of deposit, i.e. second-day availability.

Deposits at Nonproprietary ATMs 

Funds deposited in an account at a nonproprietary ATM by cash or check will be made available for withdrawal on the second business day following the day of deposit.

Exception Holds 

In some situations, the Credit Union may exercise an exception hold on deposited funds. During this period, funds availability may be delayed for longer periods. The following circumstances comprise situations in which the Credit Union may exercise an exception hold which applies to all checks, even checks normally subject to same or next-day availability:

  • Large Deposits: Deposited checks totaling more than $5,525 in one day.
    o The first $5,525 of the check deposit(s) remains subject to the Credit Union’s standard availability schedule; any amount exceeding $5,525 may be placed on an exception hold.
  • Re-Deposited Checks: Checks that have been returned as unpaid.
  • Repeated Overdrafts: When a member’s account(s) have been repeatedly overdrawn six or more times in the last six months.
  • Reasonable Cause to Doubt Collectability: When the Credit Union has reasonable cause to doubt collectability of a check, such as a stale or postdated check, evidence of check kiting or other facts surrounding cause for doubt.
  • Emergencies Conditions: Instances occurring such as failure of telecommunications or system outages, war, or another emergency condition beyond the Credit Union’s control.

When an exception hold is permitted, the Credit Union will be subject to the following requirements:

  • Notice at Time of Hold – Notice will be given when the deposit is made. If the hold is not placed until after the deposit is made, notice will be provided no later than the business day following the hold being placed. Notice will be provided to the member via mail, fax, or e-mail if the member agrees to receive e-mails.

Exception holds placed on checks may be extended by up to seven business days, except for any “on us” checks subject to an exception, which may be placed on hold for only one additional day. If the emergency situation exception hold is invoked, the funds must be made available for withdrawal not later than a reasonable period after the emergency has ended.

New Account Rules

Special rules apply for new accounts, i.e. an account that has been open for less than 30 days. An account is not new if the member has had another transaction account at the Credit Union for at least 30 days.

  • Cash deposits and electronic direct deposits, which will be made available on the same day as the deposit even in the case of a new account.
  • The first $5,525 of funds deposited from checks that meet the qualifications for same-day or next-day availability (including US Treasury checks, Federal Reserve Bank checks, Federal Home Loan Bank checks, Maine state and local government checks, cashier’s checks, certified checks, teller’s checks, and traveler’s checks) will be made available on the first business day after the day of deposit (next-day availability).
  • Funds from check deposits normally subject to same-day or next-day availability in excess of $5,525 and funds from check deposits not normally subject to same-day or next-day availability will be made available no later than the seventh business day after the deposit.

Foreign Checks

Checks drawn on financial institutions located outside the U.S. (foreign checks) cannot be processed the same as checks drawn on U.S. financial institutions. Foreign checks are exempt from the policies outlined in this policy. Generally, the availability of funds for deposits of foreign checks will be delayed for the time it takes the Credit Union to collect the funds from the financial institutions upon which it is drawn.

Deposit Reconciliation
The Credit Union will establish procedures to help employees process transactions, report discrepancies, determine their causes, and reconcile them within appropriate timeframes. Training and oversight will be provided to ensure compliance with these procedures.

Employee Procedures and Training
The Credit Union will implement procedures to ensure compliance with these requirements, making them available to relevant employees. Staff responsible for this policy and its procedure will receive appropriate training.

Two-Year Retention
The Credit Union must retain records demonstrating compliance with Reg CC for at least two years.