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[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%)