§4001 — Title 12 Banks and Banking | U.S. Code

Summary

Defines important words used in this chapter. Account is a demand deposit or similar transaction account at a depository institution. Board means the Board of Governors of the Federal Reserve System. Business day is any day except Saturday, Sunday, or a legal holiday. Cash means U.S. coins and paper money, including Federal Reserve notes. Cashier’s check is a check drawn on and guaranteed by a depository institution and signed by its officer or employee. Certified check is a check the bank says is genuine and for which the bank has set aside funds to pay it. Check means a negotiable demand draft payable through a U.S. depository institution and does not include noncash items. Check clearinghouse association is a local arrangement for exchanging deposited checks without using Federal Reserve facilities. Check processing region is the area served by a Federal Reserve check processing center or a larger area the Board sets. Consumer account is used mainly for personal, family, or household purposes. Depository check covers cashier’s, certified, teller’s checks, and similar instruments the Board names. Depository institution has the meaning in section 461(b)(1)(A) and also includes a foreign bank’s U.S. office, branch, or agency. Local originating depository institution is an originating bank in the same check processing region; nonlocal is not. Noncash item covers checks with attached documents, special instructions, or similar items the Board classifies that way. Proprietary ATM is an ATM at or very near a bank branch or owned/operated by that bank; nonproprietary ATM is not. Originating depository institution is the branch where a check is written. Participant is a bank in a check clearinghouse area that exchanges checks there. Receiving depository institution is the branch or proprietary ATM in the U.S. where a check is first deposited. State and United States each include the several States, the District of Columbia, Puerto Rico, American Samoa, the Northern Mariana Islands, Guam, and the Virgin Islands. Teller’s check is issued by one depository institution and drawn on another. Unit of general local government means a city, county, town, township, parish, village, or similar local government. Wire transfer is defined by rules the Board issues.

Title 12, §4001

Banks and Banking — Source: USLM XML via OLRC

For purposes of this chapter—

(1)The term “account” means a demand deposit account or other similar transaction account at a depository institution.

(2)The term “Board” means the Board of Governors of the Federal Reserve System.

(3)The term “business day” means any day other than a Saturday, Sunday, or legal holiday.

(4)The term “cash” means United States coins and currency, including Federal Reserve notes.

(5)The term “cashier’s check” means any check which—

(A)is drawn on a depository institution;

(B)is signed by an officer or employee of such depository institution; and

(C)is a direct obligation of such depository institution.

(6)The term “certified check” means any check with respect to which a depository institution certifies that—

(A)the signature on the check is genuine; and

(B)such depository institution has set aside funds which—

(i)are equal to the amount of the check; and

(ii)will be used only to pay such check.

(7)The term “check” means any negotiable demand draft drawn on or payable through an office of a depository institution located in the United States. Such term does not include noncash items.

(8)The term “check clearinghouse association” means any arrangement by which participant depository institutions exchange deposited checks on a local basis, including an entire metropolitan area, without using the check processing facilities of the Federal Reserve System.

(9)The term “check processing region” means the geographical area served by a Federal Reserve bank check processing center or such larger area as the Board may prescribe by regulations.

(10)The term “consumer account” means any account used primarily for personal, family, or household purposes.

(11)The term “depository check” means any cashier’s check, certified check, teller’s check, and any other functionally equivalent instrument as determined by the Board.

(12)The term “depository institution” has the meaning given such term in clauses (i) through (vi) of section 461(b)(1)(A) of this title. Such term also includes an office, branch, or agency of a foreign bank located in the United States.

(13)The term “local originating depository institution” means any originating depository institution which is located in the same check processing region as the receiving depository institution.

(14)The term “noncash item” means—

(A)a check or other demand item to which a passbook, certificate, or other document is attached;

(B)a check or other demand item which is accompanied by special instructions, such as a request for special advise of payment or dishonor; or

(C)any similar item which is otherwise classified as a noncash item in regulations of the Board.

(15)The term “nonlocal originating depository institution” means any originating depository institution which is not a local depository institution.

(16)The term “proprietary ATM” means an automated teller machine which is—

(A)located—

(i)at or adjacent to a branch of the receiving depository institution; or

(ii)in close proximity, as defined by the Board, to a branch of the receiving depository institution; or

(B)owned by, operated exclusively for, or operated by the receiving depository institution.

(17)The term “originating depository institution” means the branch of a depository institution on which a check is drawn.

(18)The term “nonproprietary ATM” means an automated teller machine which is not a proprietary ATM.

(19)The term “participant” means a depository institution which—

(A)is located in the same geographic area as that served by a check clearinghouse association; and

(B)exchanges checks through the check clearinghouse association, either directly or through an intermediary.

(20)The term “receiving depository institution” means the branch of a depository institution or the proprietary ATM, located in the United States, in which a check is first deposited.

(21)The term “State” means any State, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, or the Virgin Islands.

(22)The term “teller’s check” means any check issued by a depository institution and drawn on another depository institution.

(23)The term “United States” means the several States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, and the Virgin Islands.

(24)The term “unit of general local government” means any city, county, town, township, parish, village, or other general purpose political subdivision of a State.

(25)The term “wire transfer” has such meaning as the Board shall prescribe by regulations.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this title”, meaning title VI of Pub. L. 100–86, Aug. 10, 1987, 101 Stat. 635, known as the Expedited Funds Availability Act, which enacted this chapter, amended section 248a of this title, and enacted provisions set out as notes under section 248a and 4001 of this title. For complete classification of this Act to the Code, see

Short Title

note below and Tables.

Amendments

2018—Par. (20). Pub. L. 115–174, § 208(a)(1)(A), inserted “, located in the United States,” after “ATM”. Pars. (21), (23). Pub. L. 115–174, § 208(a)(1)(B), (C), inserted “American Samoa, the Commonwealth of the Northern Mariana Islands, Guam,” after “Puerto Rico,”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2018 Amendment Pub. L. 115–174, title II, § 208(b), May 24, 2018, 132 Stat. 1313, provided that: “The

Amendments

made by this section [amending this section and section 4002 of this title] shall take effect on the date that is 30 days after the date of enactment of this Act [May 24, 2018].”

Effective Date

Pub. L. 100–86, title VI, § 613, Aug. 10, 1987, 101 Stat. 652, provided that: “(a) Date of Enactment.—Except as provided in subsection (b), this title [enacting this chapter, amending section 248a of this title, and enacting provisions set out as notes under this section and section 248a of this title] shall take effect on the date of the enactment of this title [Aug. 10, 1987]. “(b) 1 Year After Date of Enactment.—section 603, 604, 605, 606, 610, and 611 [enacting sections 4002 to 4005, 4009, and 4010 of this title] shall take effect on September 1, 1988.”

Short Title

Pub. L. 100–86, title VI, § 601, Aug. 10, 1987, 101 Stat. 635, provided that: “This title [enacting this chapter, amending section 248a of this title, and enacting provisions set out as notes under this section and section 248a of this title] may be cited as the ‘Expedited Funds Availability Act’.” SeparabilityIf any provision of Pub. L. 100–86 or the application thereof to any person or circumstances is held invalid, the remainder of Pub. L. 100–86 and the application of the provision to other persons not similarly situated or to other circumstances not to be affected thereby, see section 1205 of Pub. L. 100–86, set out as a note under section 226 of this title.

§4001 Definitions

Summary

Title 12, §4001

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Effective Date

Short Title

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