[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: 12CFR229.20]



[Page 555-556]

 

                       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. 229.20  Relation to state law.



    (a) In general. Any provision of a law or regulation of any state in 

effect on or before September 1, 1989, that requires funds deposited in 

an account at a bank chartered by the state to be made available for 

withdrawal in a shorter time than the time provided in subpart B, and, 

in connection therewith, subpart A, shall--

    (1) Supersede the provisions of the EFA Act and subpart B, and, in 

connection therewith, subpart A, to the extent the provisions relate to 

the time by which funds deposited or received for deposit in an account 

are available for withdrawal; and

    (2) Apply to all federally insured banks located within the state.



No amendment to a state law or regulation governing the availability of 

funds that becomes effective after September 1, 1989, shall supersede 

the EFA Act and subpart B, and, in connection therewith, subpart A, but 

unamended provisions of state law shall remain in effect.

    (b) Preemption of inconsistent law. Except as provided in paragraph 

(a), the EFA Act and subpart B, and, in connection therewith, subpart A, 

supersede any provision of inconsistent state law.

    (c) Standards for preemption. A provision of a state law in effect 

on or before September 2, 1989, is not inconsistent with the EFA Act, or 

subpart B, or in connection therewith, subpart A, if it requires that 

funds shall be available in a shorter period of time than the time 

provided in this subpart. Inconsistency with the EFA Act and subpart B, 

and in connection therewith, subpart A, may exist when state law--

    (1) Permits a depositary bank to make funds deposited in an account 

by cash, electronic payment, or check available for withdrawal in a 

longer period of time than the maximum period of time permitted under 

subpart B, and, in connection therewith, subpart A; or

    (2) Provides for disclosures or notices concerning funds 

availability relating to accounts.

    (d) Preemption determinations. The Board may determine, upon the 

request of any state, bank, or other interested party, whether the EFA 

Act and subpart B, and, in connection therewith,



[[Page 556]]



subpart A, preempt provisions of state laws relating to the availability 

of funds.

    (e) Procedures for preemption determinations. A request for a 

preemption determination shall include the following--

    (1) A copy of the full text of the state law in question, including 

any implementing regulations or judicial interpretations of that law; 

and

    (2) A comparison of the provisions of state law with the 

corresponding provisions in the EFA Act and subparts A and B of this 

part, together with a discussion of the reasons why specific provisions 

of state law are either consistent or inconsistent with corresponding 

sections of the EFA Act and subparts A and B of this part.

    A request for a preemption determination shall be addressed to the 

Secretary, Board of Governors of the Federal Reserve System.



[53 FR 19433, May 27, 1988, as amended at 69 FR 47311, Aug. 4, 2004]