12 U.S.C. § 4002

Expedited funds availability schedules

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(a) Next business day availability for certain deposits(1) Cash deposits; wire transfersExcept as provided in subsection (e) and in section 4003 of this title, in any case in which—(A) any cash is deposited in an account at a receiving depository institution staffed by individuals employed by such institution, or(B) funds are received by a depository institution by wire transfer for deposit in an account at such institution,such cash or funds shall be available for withdrawal not later than the business day after the business day on which such cash is deposited or such funds are received for deposit.(2) Government checks; certain other checksFunds deposited in an account at a depository institution by check shall be available for withdrawal not later than the business day after the business day on which such funds are deposited in the case of—(A) a check which—(i) is drawn on the Treasury of the United States; and(ii) is endorsed only by the person to whom it was issued;(B) a check which—(i) is drawn by a State;(ii) is deposited in a receiving depository institution which is located in such State and is staffed by individuals employed by such institution;(iii) is deposited with a special deposit slip which indicates it is a check drawn by a State; and(iv) is endorsed only by the person to whom it was issued;(C) a check which—(i) is drawn by a unit of general local government;(ii) is deposited in a receiving depository institution which is located in the same State as such unit of general local government and is staffed by individuals employed by such institution;(iii) is deposited with a special deposit slip which indicates it is a check drawn by a unit of general local government; and(iv) is endorsed only by the person to whom it was issued;(D) the first $200 deposited by check or checks on any one business day;(E) a check deposited in a branch of a depository institution and drawn on the same or another branch of the same depository institution if both such branches are located in the same State or the same check processing region;(F) a cashier’s check, certified check, teller’s check, or depository check which—(i) is deposited in a receiving depository institution which is staffed by individuals employed by such institution;(ii) is deposited with a special deposit slip which indicates it is a cashier’s check, certified check, teller’s check, or depository check, as the case may be; and(iii) is endorsed only by the person to whom it was issued.(b) Permanent schedule(1) Availability of funds deposited by local checks

Subject to paragraph (3) of this subsection, subsections (a)(2), (d), and (e) of this section, and section 4003 of this title, not more than 1 business day shall intervene between the business day on which funds are deposited in an account at a depository institution by a check drawn on a local originating depository institution and the business day on which the funds involved are available for withdrawal.

(2) Availability of funds deposited by nonlocal checks

Subject to paragraph (3) of this subsection, subsections (a)(2), (d), and (e) of this section, and section 4003 of this title, not more than 4 business days shall intervene between the business day on which funds are deposited in an account at a depository institution by a check drawn on a nonlocal originating depository institution and the business day on which such funds are available for withdrawal.

(3) Time period adjustments for cash withdrawal of certain checks(A) In general

Except as provided in subparagraph (B), funds deposited in an account in a depository institution by check (other than a check described in subsection (a)(2)) shall be available for cash withdrawal not later than the business day after the business day on which such funds otherwise are available under paragraph (1) or (2).

(B) 5 p.m. cash availability

Not more than $400 (or the maximum amount allowable in the case of a withdrawal from an automated teller machine but not more than $400) of funds deposited by one or more checks to which this paragraph applies shall be available for cash withdrawal not later than 5 o’clock post meridian of the business day on which such funds are available under paragraph (1) or (2). If funds deposited by checks described in both paragraph (1) and paragraph (2) become available for cash withdrawal under this paragraph on the same business day, the limitation contained in this subparagraph shall apply to the aggregate amount of such funds.

Any amount available for withdrawal under this paragraph shall be in addition to the amount available under subsection (a)(2)(D).

(4) Applicability

This subsection shall apply with respect to funds deposited by check in an account at a depository institution on or after September 1, 1990, except that the Board may, by regulation, make this subsection or any part of this subsection applicable earlier than September 1, 1990.

Subject to subparagraph (B) of this paragraph, subsections (a)(2), (d), and (e) of this section, and section 4003 of this title, not more than 2 business days shall intervene between the business day on which funds are deposited in an account at a depository institution by a check drawn on a local originating depository institution and the business day on which such funds are available for withdrawal.

(B) Time period adjustment for cash withdrawal of certain checks(i) In general

Except as provided in clause (ii), funds deposited in an account in a depository institution by check drawn on a local depository institution that is not a participant in the same check clearinghouse association as the receiving depository institution (other than a check described in subsection (a)(2)) shall be available for cash withdrawal not later than the business day after the business day on which such funds otherwise are available under subparagraph (A).

(ii) 5 p.m. cash availability

(iii) $200 availability

Any amount available for withdrawal under this subparagraph shall be in addition to the amount available under subsection (a)(2)(D).

(2) Availability of nonlocal checks

Subject to subsections (a)(2), (d), and (e) of this section and section 4003 of this title, not more than 6 business days shall intervene between the business day on which funds are deposited in an account at a depository institution by a check drawn on a nonlocal originating depository institution and the business day on which such funds are available for withdrawal.

(3) Applicability

This subsection shall apply with respect to funds deposited by check in an account at a depository institution after August 31, 1988, and before September 1, 1990, except as may be otherwise provided under subsection (b)(4).

(d) Time period adjustments(1) Reduction generally

Notwithstanding any other provision of law, the Board, jointly with the Director of the Bureau of Consumer Financial Protection, shall, by regulation, reduce the time periods established under subsections (b), (c), and (e) to as short a time as possible and equal to the period of time achievable under the improved check clearing system for a receiving depository institution to reasonably expect to learn of the nonpayment of most items for each category of checks.

(2) Extension for certain deposits in noncontiguous States or territoriesNotwithstanding any other provision of law, any time period established under subsection (b), (c), or (e) shall be extended by 1 business day in the case of any deposit which is both—(A) deposited in an account at a depository institution which is located in Alaska, Hawaii, Puerto Rico, American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, or the Virgin Islands; and(B) deposited by a check drawn on an originating depository institution which is not located in the same State, commonwealth, or territory as the receiving depository institution.(e) Deposits at ATM(1) Nonproprietary ATM(A) In general

Not more than 4 business days shall intervene between the business day a deposit described in subparagraph (B) is made at a nonproprietary automated teller machine (for deposit in an account at a depository institution) and the business day on which funds from such deposit are available for withdrawal.

(B) Deposits described in this paragraph 11 So in original. Probably should be “subparagraph”.A deposit is described in this subparagraph if it is—(i) a cash deposit;(ii) a deposit made by a check described in subsection (a)(2);(iii) a deposit made by a check drawn on a local originating depository institution (other than a check described in subsection (a)(2)); or(iv) a deposit made by a check drawn on a nonlocal originating depository institution (other than a check described in subsection (a)(2)).(2) Proprietary ATM—temporary and permanent schedules

The provisions of subsections (a), (b), and (c) shall apply with respect to any funds deposited at a proprietary automated teller machine for deposit in an account at a depository institution.

(3) Study and report on ATM’s

The Board shall, either directly or through the Consumer Advisory Council, establish and maintain a dialogue with depository institutions and their suppliers on the computer software and hardware available for use by automated teller machines, and shall, not later than September 1 of each of the first 3 calendar years beginning after August 10, 1987, report to the Congress regarding such software and hardware and regarding the potential for improving the processing of automated teller machine deposits.

(f) Check return; notice of nonpaymentNo provision of this section shall be construed as requiring that, with respect to all checks deposited in a receiving depository institution—(1) such checks be physically returned to such depository institution; or(2) any notice of nonpayment of any such check be given to such depository institution within the times set forth in subsection (a), (b), (c), or (e) or in the regulations issued under any such subsection.(Pub. L. 100–86, title VI, § 603, Aug. 10, 1987, 101 Stat. 637; Pub. L. 101–625, title X, § 1001, Nov. 28, 1990, 104 Stat. 4424; Pub. L. 102–242, title II, § 227(a), (b)(1), Dec. 19, 1991, 105 Stat. 2307; Pub. L. 111–203, title X, § 1086(a), (e), July 21, 2010, 124 Stat. 2085, 2086; Pub. L. 115–174, title II, § 208(a)(2), May 24, 2018, 132 Stat. 1312.)Editorial NotesAmendments

2018—Subsec. (d)(2)(A). Pub. L. 115–174 inserted “American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,” after “Puerto Rico,”.

2010—Subsec. (a)(2)(D). Pub. L. 111–203, § 1086(e)(1), substituted “$200” for “$100”.

Subsecs. (b)(3)(C), (c)(1)(B)(iii). Pub. L. 111–203, § 1086(e)(2), (3), substituted “$200” for “$100” in heading.

Subsec. (d)(1). Pub. L. 111–203, § 1086(a), inserted “, jointly with the Director of the Bureau of Consumer Financial Protection,” after “Board”.

1991—Subsec. (e)(1). Pub. L. 102–242, § 227(b)(1)(A), struck out “—temporary schedule” after “ATM” in heading.

Subsec. (e)(1)(C). Pub. L. 102–242, § 227(a), struck out subpar. (C) which read as follows: “This paragraph shall apply with respect to funds deposited at a nonproprietary automated teller machine after August 31, 1988, and prior to the expiration of the 2-year period beginning on November 28, 1990.”

Subsec. (e)(2) to (4). Pub. L. 102–242, § 227(a), (b)(1)(B), redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which related to permanent schedule for funds deposited at nonproprietary automated teller machines.

1990—Subsec. (e)(1)(A). Pub. L. 101–625, § 1001(1), substituted “4” for “6”.

Subsec. (e)(1)(C). Pub. L. 101–625, § 1001(2), substituted “prior to the expiration of the 2-year period beginning on November 28, 1990” for “before September 1, 1990”.

Subsec. (e)(2)(D). Pub. L. 101–625, § 1001(3), substituted “the expiration of the 2-year period beginning on November 28, 1990” for “September 1, 1990”.

Statutory Notes and Related SubsidiariesEffective Date of 2018 Amendment

Amendment by Pub. L. 115–174 effective 30 days after May 24, 2018, see section 208(b) of Pub. L. 115–174, set out as a note under section 4001 of this title.

Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

Effective Date

Section effective Sept. 1, 1988, see section 613(b) of Pub. L. 100–86, set out as a note under section 4001 of this title.

Notes of Decisions

Cited in 23 cases (7 in the last 5 years), 1988–2026 · leading case: Greenberg, Trager & Herbst, LLP v. HSBC Bank USA, 958 N.E.2d 77 (NY 2011).

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Greenberg, Trager & Herbst, LLP v. HSBC Bank USA, 958 N.E.2d 77 (NY 2011). · cites it 2× “), banks are required to make funds from a deposited check available for the depositor's withdrawal within certain short time periods ( see 12 USC § 4002 [b] [1]). The purpose of the "[a]ct is to provide faster availability of deposited funds" ( Haas v Commerce Bank, 497 F Supp…”

Nix v. NASA Fed. Credit Union, 200 F. Supp. 3d 578 (D. Maryland 2016). “” 12 U.S.C. § 4002 (A); see also 12 C.F.R. § 229.”

Pemberton Sales & Serv., Inc. v. Banco Popular De Puerto Rico, 877 F. Supp. 961 (D.V.I. 1994). · cites it 2× “25 government check did not become available until Wednesday, January 23, 1991 (Tuesday, January 22, 1991 was the statutorily required intervening business day.”

Credit Union Nat'l Ass'n v. Bd. of Governors of Fed. Reserve Sys., 700 F. Supp. 1152 (D.D.C. 1988). · cites it 3× “” 12 U.S.C. § 4002 (c)(1). 4 The Act further provides that during the transitional period, not more than six business days shall intervene between the date of deposit of a check drawn on a nonlocal originating depository institution and the business day *1156 on which such funds…”

Jicarilla Apache Nation v. United States, 100 Fed. Cl. 726 (Fed. Cl. 2011). “12 U.S.C. § 4002 (a)(2)(A); 12 C.F.R. § 229.”

Mitchell Buick & Oldsmobile Sales, Inc. v. McHenry Sav. Bank, 601 N.E.2d 1360 (Ill. App. Ct. 1992). “4-213(5); 12 U.S.C.A. §4002 (West 1989)). Plaintiff should have known the deposits could have included checks of a lesser quality, including nonlocal checks, two-party checks, stolen checks, forged checks, insufficiently funded checks or checks written with disappearing ink.”

Oak Brook Bank v. N. Trust Co., 256 F.3d 638 (7th Cir. 2001). “12 U.S.C. § 4002 . The shortening of the hold period increased the risk of nonpayment to these banks, and to deal with that problem the Act authorized the Federal Reserve Board to issue regulations governing the system of bank payments.”

Lynch v. Bank of Am., N.A., 493 F. Supp. 2d 265 (D.R.I. 2007). · cites it 2× “12 U.S.C. § 4002 (b)(3)(A). Thus, when Lynch deposited the check in issue on March 20, 2006, the Bank had up to three days to make the funds available for cash withdrawal in compliance with EFAA.”

O'Brien v. Bank of Am., N.A., 75 A.3d 964 (Md. Ct. Spec. App. 2013). · cites it 2× “Furthermore, as the trial court indicated, “[a] bank does not violate its obligations under [ 12 U.S.C. § 4002 ] by holding funds to satisfy a garnishment, tax levy, or court order restricting disbursements from the account.”

Little Donkey Enter. Washington, Inc. v. U.S. Bancorp, 136 F. App'x 91 (9th Cir. 2005). “See 12 U.S.C. § 4002 (defining specific deposit types and required timeframes for when funds must be made available for these specific types of deposits.”

Drury v. Horizon Sav. Bank, F.S.B., 762 F. Supp. 235 (N.D. Ill. 1991). · cites it 2× “Under 12 U.S.C. § 4002 (c)(l)-(2), local checks may be held for a maximum of 2 business days following deposit before withdrawal and non-local checks may be held a maximum of 6 days following deposit before withdrawal if the funds were deposited before September 1, 1990.”

Beffa v. Bank of the West, 152 F.3d 1174 (9th Cir. 1998). “12 U.S.C. § 4002 (a)(1)(B). The Act specifically provides that banks are civilly liable to individuals damaged as a result of an EFAA violation.”

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