Title 12, Banks and BankingRelease 119-110
§4007 Effect on State Law
Title 12 › CHAPTER 41 — EXPEDITED FUNDS AVAILABILITY › § 4007
Summary
If a state law that existed on September 1, 1989 required deposits at state-chartered banks to be available sooner than the federal rules did then, that state law takes priority. It replaces the federal timing rules and must be followed by all federally insured banks in that state. For everything else, the federal rules in this chapter override any conflicting state law, including the Uniform Commercial Code.
Full Legal Text
Title 12, §4007
Banks and Banking, Source: USLM XML via OLRC
(a)In general
Any law or regulation of any State in effect on September 1, 1989, which requires that funds deposited or received for deposit in an account at a depository institution chartered by such State be made available for withdrawal in a shorter period of time than the period of time provided in this chapter or in regulations prescribed by the Board under this chapter (as in effect on September 1, 1989) shall—
(1)supersede the provisions of this chapter and any regulations by the Board to the extent such provisions relate to the time by which funds deposited or received for deposit in an account shall be available for withdrawal; and
(2)apply to all federally insured depository institutions located within such State.
(b)Override of certain State laws
Except as provided in subsection (a), this chapter and regulations prescribed under this chapter shall supersede any provision of the law of any State, including the Uniform Commercial Code as in effect in such State, which is inconsistent with this chapter or such regulations.
Reference
Citations & Metadata
Citation
12 U.S.C. § 4007
Title 12, Banks and Banking
Last Updated
Sep 22, 2026
Release point: 119-110