Expedited Funds Availability Act (EFAA)
Contents
Demystifying the Expedited Funds Availability Act (EFAA): A Comprehensive Guide
Unravel the complexities of the Expedited Funds Availability Act (EFAA), enacted by the U.S. Congress in 1987 to regulate deposit hold periods in commercial banks. Delve into the key provisions, hold types, and implications of this significant piece of legislation shaping banking practices across the nation.
Understanding the EFAA: Navigating Deposit Hold Regulations
Gain insights into the purpose and scope of the EFAA, designed to standardize the handling of deposit holds by financial institutions. Explore how banks inform customers of their policies and comply with the regulations outlined in Regulation CC by the Federal Reserve.
Deciphering Hold Types Under the EFAA
Explore the four main types of deposit holds allowed under the EFAA: statutory, large deposit, new account, and exception holds. Understand the specific requirements for each hold type and how banks determine their application based on legal and policy considerations.
Navigating Statutory, Large Deposit, New Account, and Exception Holds
Dive into the nuances of each hold type sanctioned by the EFAA, from statutory holds ensuring incremental availability of deposited funds to exception holds triggered by account history or suspected fraud. Explore real-world scenarios and implications for both banks and customers.