At the end of February, all paper checks will be processed by the Federal Reserve Bank of Cleveland and there will be no such thing as a non-local check, as a result of rules changes approved last week by the Fed's Board of Governors.
As a result, credit unions and banks will have to make funds available more quickly when someone deposits a paper check. Credit unions have currently can hold the funds on a non-local check for up to five days.
The change will take effect on Feb. 27.
The full rule can be found at: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20091231a1.pdf
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
