[Code of Federal Regulations]

[Title 12, Volume 3]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR229.14]



[Page 551]

 

                       TITLE 12--BANKS AND BANKING

 

                   CHAPTER II--FEDERAL RESERVE SYSTEM

 

PART 229_AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS (REGULATION CC)

--Table of Contents

 

  Subpart B_Availability of Funds and Disclosure of Funds Availability 

                                Policies

 

Sec. 229.14  Payment of interest.



    (a) In general. A depositary bank shall begin to accrue interest or 

dividends on funds deposited in an interest-bearing account not later 

than the business day on which the depositary bank receives credit for 

the funds. For the purposes of this section, the depositary bank may--

    (1) Rely on the availability schedule of its Federal Reserve Bank, 

Federal Home Loan Bank, or correspondent bank to determine the time 

credit is actually received; and

    (2) Accrue interest or dividends on funds deposited in interest-

bearing accounts by checks that the depositary bank sends to paying 

banks or subsequent collecting banks for payment or collection based on 

the availability of funds the depositary bank receives from the paying 

or collecting banks.

    (b) Special rule for credit unions. Paragraph (a) of this section 

does not apply to any account at a bank described in Sec. 229.2(e)(4), 

if the bank--

    (1) Begins the accrual of interest or dividends at a later date than 

the date described in paragraph (a) of this section with respect to all 

funds, including cash, deposited in the account; and

    (2) Provides notice of its interest or dividend payment policy in 

the manner required under Sec. 229.16(d).

    (c) Exception for checks returned unpaid. This subpart does not 

require a bank to pay interest or dividends on funds deposited by a 

check that is returned unpaid.