Fair Deposit Availability Act of 1987

Summary

Fair Deposit Availability Act of 1987 - Sets forth depository institution disclosure requirements concerning: (1) the availability for withdrawal of funds deposited by check or similar instrument into a deposit account; and (2) the computation of interest on deposited funds pending the receipt of provisional credit for the check or instrument. Requires the computation of interest on such deposited funds to begin no later than the date the institution receives provisional credit, unless the computation of interest begins at a later date for all deposits, including cash deposits, made to the account. Requires the Federal Reserve Board to promulgate regulations, to become effective within 48 months after enactment of this Act, which will expedite customer access to funds deposited by check either by: (1) improving the check clearing system by expediting the process for returning unpaid items in order to ensure that receiving depository institutions can expect to learn of the nonpayment of any item and provide for the availability of funds deposited by check within four days after such deposit; or (2) limiting the length of time within which funds deposited by check shall be available for withdrawal, with certain exceptions, based upon the number of days necessary to provide provisional credit and considering such factors as the type of instrument, type of institution, and geographic location. Sets forth circumstances under which such regulations shall not apply. Permits the Board to suspend the applicability of such regulations to any class of checks if necessary to diminish an unacceptable level of losses due to check-related fraud. Requires depositors to receive notice of when funds will be available for withdrawal whenever exceptions to such regulations are invoked. Requires the Board to establish an Expedited Funds Availability Council to advise and consult with the Board in the exercise of its functions under this Act. Requires the Board to promulgate regulations, to become effective within 48 months after enactment of this Act, which require that funds deposited by check shall be available for withdrawal on the date the depository institution receives provisional credit where that check is: (1) endorsed only by the payee; and (2) drawn on the U.S. Treasury or the treasury of any State or local government located in the same State as the receiving depository institution. Sets forth provisions governing the administrative enforcement of this Act and the civil liability of institutions that fail to comply with this Act. Provides that State regulations that require funds deposited at State-chartered institutions to be available for withdrawal in a shorter period of time than required pursuant to this Act shall supersede this Act and shall apply to all federally insured depository institutions located in such State. Requires the Board to conduct a study and submit findings to the Congress on: (1) the effect of changes in fund availability and check clearing made by this Act; (2) the advisability of further changes; (3) an assessment of possible improvements in the check collection system; (4) an assessment of the use of electronics in payments; and (5) the need for improvements in the payments system. Amends the Federal Reserve Act to authorize all depository institutions to receive for deposit any evidences of transaction accounts from other institutions or from any office of any Federal Reserve bank without regard to any Federal or State law restricting the number or the physical location of such institutions.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 20 January 1987

   Introduced

   Read twice and referred to the Committee on Banking.

   Source: IntroReferral

2. 20 January 1987

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 5 February 1987

   Committee

   Subcommittee on Consumer Affairs. Hearings held. Hearings printed: S.Hrg. 100-15.

   Source: Committee

Votes

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Versions

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Documents

1 official file

• Introduced in Senate

  summary · EN · 20 January 1987

  Open at official source

Sponsors

• Rep. Dodd, Christopher J. [D-CT-2] · D · Sponsor
• Sen. Proxmire, William [D-WI] · D · Sponsor
• Sen. D'Amato, Alfonse [R-NY] · R · Sponsor
• Sen. Cranston, Alan [D-CA] · D · Sponsor
• Sen. Kerry, John F. [D-MA] · D · Sponsor
• · ssbk00 · Standing

Related records

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