Funds Availibility Policy

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The policy of Paul Quinn Federal Credit Union is to comply with Regulation CC.

 

** RIGHT TO HOLD FUNDS

For members a check that is accepted for deposit, cash or payment is usually sent to the Credit Union's corresponding bank. The corresponding bank processes the check through the clearing system which may take several business days. Until the check is finally paid by the drawing bank, the Credit Union does not have the use of the funds. The drawing bank may return the check for various reasons, and this return process may take several days also.

Therefore, to protect the Credit Union, a hold may be placed against the check, or against funds in any of the member's deposit accounts, that will allow sufficient time for funds to become collected or the check to be returned.


DELAY PERIOD

0 Days Delay.

In most cases, the Credit Union will make available all funds on the same business day, when matching funds are available. The business day is limited to regular office hours, and the Credit Union may be closed on federal holidays and other days approved by the Board of Directors.

** 5 or 10 Business Days Delay.

In some cases (listed below), the Credit Union will impose a five business days delay (for local checks) or ten business days delay (for out-of-town checks) on the availability of funds.

Checks the member presents total more than $5,000 on any one day.

A check that has been deposited once which has been returned for any reason.

A member's share draft account has been overdrawn repeatedly in the last six months.

A belief that the check will not be paid.

A suspicion that the check is altered or forged.

An emergency/disaster situation which is causing transportation, communication or equipment failure.

** A suspicion that check kiting is taking place.

DISCLOSURES

A "Regulation CC, Funds Availability" disclosure will be given to the member for each new account opened.

If a check presented for deposit, cash, or payment is suspect to being held, the member will be told that such a hold is being placed on the funds.