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Financial Institution Letters

[Federal Register: August 23, 1996 (Volume 61, Number 165)]
[Page 43573]
From the Federal Register Online via GPO Access []

[[Page 43573]]



Office of the Comptroller of the Currency
[Docket No. 96-17]


[Docket No. R-0933]



Office of Thrift Supervision
[Order No. 96-81]

Interagency Policy Statement Regarding Delayed Availability of 

AGENCIES: Office of the Comptroller of the Currency (OCC), Department 
of the Treasury; Board of Governors of the Federal Reserve System 
(FRB); Federal Deposit Insurance Corporation (FDIC); Office of Thrift 
Supervision (OTS), Department of the Treasury (collectively, the 

ACTION: Withdrawal of statement of policy.


SUMMARY: The agencies are withdrawing their joint statement of policy 
entitled ``Delayed Availability of Funds'' (the Statement) on the 
ground that it is superfluous.

EFFECTIVE DATE: The removal of the Statement of Policy is effective 
August 23, 1996.


OCC: Bert Otto, Acting Deputy Comptroller, (202/874-5224), Office of 
the Comptroller of the Currency, 250 E Street, SW., Washington, DC 
FRB: Manley Williams, Staff Attorney, Division of Consumer and 
Community Affairs (202/452-3667), Board of Governors of the Federal 
Reserve System, 20th and C Streets, NW., Washington, DC 20551.
FDIC: Louise Kotoshirodo, Review Examiner, Division of Compliance and 
Consumer Affairs, (202/942-3599); or Mark A. Mellon, Counsel, 
Regulation and Legislation Section, Legal Division (202/898-3854), 
Federal Deposit Insurance Corporation, 550 17th St., NW., Washington, 
DC 20549.
OTS: Tim Burniston, Director, Compliance Policy, (202/906-5629); or 
Richard Blanks, (202/906-7037), Counsel (Banking and Finance), Office 
of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552.

the Federal Home Loan Bank Board (the predecessor to the OTS) 
(collectively, the agencies) issued a policy statement to encourage and 
assist the efforts of depository institutions in voluntarily addressing 
the problems caused as a result of some depository institutions 
delaying a depositor's ability to withdraw funds deposited by check, a 
practice often referred to as ``delayed availability of funds.'' 49 FR 
    The policy statement called for those financial institutions that 
delayed availability to voluntarily review and disclose their policies, 
and to refrain from imposing unnecessary delays on all checks, 
particularly on Social Security and other government checks. In 
reviewing their availability policies, institutions were asked to 
consider taking into account factors that indicate whether a given 
situation presents a risk of loss and to provide a means for depositors 
to request that an exception be made to the standard hold policy.
    On August 10, 1987, the Expedited Funds Availability Act (the EFAA) 
was enacted. The EFAA requires institutions to disclose their funds 
availability policies. It also lists specific time periods during which 
a depository institution must make deposited funds available to its 
account holders. The EFAA directs the FRB to promulgate implementing 
regulations to carry out the EFAA's provisions. The FRB fulfilled this 
responsibility by promulgating 12 CFR Part 229--Availability of Funds 
and Collection of Checks (Regulation CC). See 53 FR 19433 (May 27, 
    Section 303 of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (the CDRI Act) requires each federal banking 
agency to streamline and modify its regulations and written policies to 
improve efficiency, reduce unnecessary costs, eliminate unwarranted 
constraints on credit availability, remove inconsistencies and outmoded 
and duplicative requirements, and to work jointly with the other 
federal banking agencies to make uniform all regulations implementing 
common statutory or supervisory policies.
    As part of its effort to fulfill the duties imposed by section 303 
of the CDRI Act, the agencies have reviewed the statement of policy 
concerning delayed availability of funds and have concluded that it has 
been made superfluous by the enactment of the EFAA and the promulgation 
of Regulation CC. The agencies have therefore decided to withdraw this 
statement of policy, thereby furthering the section 303 goal of 
removing outmoded and duplicative requirements.

The Agencies' Action

    The agencies hereby withdraw the Statement.

    Dated at Washington, D.C. this 15th day of August, 1996.

Office of the Comptroller of the Currency.
Eugene A. Ludwig,
Comptroller of the Currency.
    By order of the Secretary of the Board, acting pursuant to 
delegated authority for the Board of Governors of the Federal 
Reserve System, August 12, 1996.
Jennifer J. Johnson,
Deputy Secretary of the Board.
    By order of the Board of Directors.

    Dated at Washington, D.C. this 13th day of August, 1996.

Federal Deposit Insurance Corporation.
Jerry L. Langley,
Executive Secretary.
    Dated at Washington, D.C., this 14th day of August, 1996.

Office of Thrift Supervision.
John F. Downey,
Executive Director, Supervision.
[FR Doc. 96-21474 Filed 8-22-96; 8:45 am]
BILLING CODE OOC 4810-33-P (25%)
BILLING CODE BOARD 6210-01-P (25%)
BILLING CODE FDIC 6714-01-P (25%)
BILLING CODE OTS 6720-01-P (25%)
Last Updated 07/17/1999

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