Title 12 — Banks and BankingRelease 119-73not60
§4002 Expedited Funds Availability Schedules
Title 12 › Chapter 41— EXPEDITED FUNDS AVAILABILITY › § 4002
Summary
Banks and other places that hold accounts must make deposited money available to customers within set time limits. Certain types of deposits must be ready to use by the next business day. Those include Treasury checks, some state and local government checks when deposited in the same state with a special slip, the first $200 in checks deposited each day, checks between branches of the same bank in the same state or check region, and certified or cashier’s checks when deposited with a special slip and endorsed by the payee. For other checks, if the check is drawn on a local bank the funds must be available within 1 business day; if drawn on a nonlocal bank the funds must be available within 4 business days. There is a rule that up to $400 (or the ATM withdrawal limit if lower, but not more than $400) of those funds must be available for cash withdrawal by 5:00 p.m. on the day they become available. Different, longer limits applied for deposits made after August 31, 1988 and before September 1, 1990 (local up to 2 days; nonlocal up to 6 days). Federal regulators (the Board together with the Consumer Financial Protection Bureau Director) must shorten these times as check-processing improves, and they must add one extra business day for some deposits involving Alaska, Hawaii, Puerto Rico, American Samoa, the Northern Mariana Islands, Guam, or the Virgin Islands when the paying bank is outside that state or territory. Deposits at nonproprietary ATMs must be available within 4 business days; deposits at a bank’s own ATMs follow the regular rules. Banks are not required to physically return checks or to give notice of nonpayment within these time limits.
Full Legal Text
Title 12, §4002
Banks and Banking — Source: USLM XML via OLRC
(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,
(2)Funds 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)(1)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)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)(A)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)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.
(C)Any amount available for withdrawal under this paragraph shall be in addition to the amount available under subsection (a)(2)(D).
(4)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.
(c)(1)(A)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)(i)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)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 subparagraph 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 subparagraph (A).
(iii)Any amount available for withdrawal under this subparagraph shall be in addition to the amount available under subsection (a)(2)(D).
(2)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)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)(1)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)Notwithstanding 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)(1)(A)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)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)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)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)No 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.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
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 Subsidiaries
Effective Date
of 2018 AmendmentAmendment 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 AmendmentAmendment 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.
Reference
Citations & Metadata
Citation
12 U.S.C. § 4002
Title 12 — Banks and Banking
Last Updated
Apr 3, 2026
Release point: 119-73not60