FYI: Changes coming to funds availability act

These changes are effective July 1, 2020, and there is no action required by you.

In line with the Federal Reserve’s Regulation CC (which provides guidelines for consumers and financial institutions related to the availability of funds and collection of checks), credit unions must make funds deposited into transaction accounts available according to specified time schedules. They are allowed to hold funds in certain circumstances, but only for limited periods. Verve, a Credit Union, has updated our disclosures (outlined below) regarding our funds availability policy.

Funds Availability Section

New Amount as
of July 1, 2020

EXCEPTION HOLDS FOR NEW ACCOUNTS:
During the first 30 days of a new membership, the first $5,000 of a day’s total deposits of government checks, cashiers checks, certified, teller’s, or traveler’s checks must be given next day availability. The amount in excess of $5,000 must be made available no later than the 9th business day following the day of deposit.

$5,525

EXCEPTION HOLD FOR LARGE DEPOSITS:
The Credit Union may extend hold schedules when local and nonlocal checks deposited exceed $5,000 on any one day.

$5,525

NEXT DAY AVAILABILTY:
Regulation CC contains a special rule for check deposits not subject to next-day availability. Under the rule, the credit union must make available for withdrawal the lesser of $200 or the total amount deposited to all accounts held by the same member on any one banking day.

$225

REPEATED OVERDRAFTS DEFINED:
The Credit Union may delay the availability of funds from checks if a member’s account incurs overdrafts on 2 banking days within the preceding 6-month period that the negative balance in the account is equal or greater than $5,000. Or if the account would have been overdrawn by $5,000 or more had the checks or other charges been paid.

$5,525