Pub. 9 2019 Issue 4

13 ISSUE 4. 2019 change-in-terms notice requirements. Regulation CC § 229.18(e) re - quires a depository institution to send customers a notice regarding a change to the bank’s funds-availability policy at least 30 days be- fore implementing a change and not later than 30 days after imple- mentation for any change which expedites the availability of funds. The final rule makes it clear that, “… [t]he changes to the availabil - ity policies to reflect the statutorily-required inflation adjustments, as implemented by this final rule, would trigger the requirement to send a change-in-terms notice.” A change-in-terms notice may be provided electronically in compliance with the Electronic Signa- tures in Global and National Commerce Act (E-Sign Act) and may be sent on or with a monthly account statement. Furthermore, staff will need to be trained. Now, let’s go over some questions that we have received on the hotline. I received the Compliance Alliance e-mail concerning the infla - tion adjustment amendments issued to Reg CC. We understand that these changes will not be effective until 7/1/20 but are won - dering if we can make these changes early. We are in the process of changing our fee schedule and plan on doing a special mailing to notify our customers of the changes. We thought if we could also include the new fund's availability schedule as well, we could save on postage rather than doing a second special mailing next year. Would this be allowed? Although early compliance is not addressed in the final rule, the bank is always welcome to make more funds available than what is required by Reg CC. The bank would want to be sure to give notice within 30 days of changing its policy. Are case-by-case holds included in the July 1, 2020, Reg CC changes? If your bank has adopted an availability policy more favorable than that required under Regulation CC, it may delay availability, but only up to the maximum time frame allowed by Regulation CC. This means that if your bank offers next day availability, but it decides to delay availability, it must still make $200 available on the next business day. On July 1, 2020, the $200 amount will increase to $225. So, your policy regarding longer delays will need to be updat- ed to reflect this new $225 amount. This also means that your fund's availability policy disclosure will need to be updated and a change in terms notice will need to be provided. Can our Funds Availability Policy Disclosure include the phrase “minimum amount required by regulation” rather than setting forth an actual dollar figure? Banks should not provide funds availability policy disclosure that includes such a phrase. The Agencies believe that it would result in consumer customer confusion. Specifically, the Agencies believe that one of the purposes of the statute is that consumers be informed of the specific amount of deposits available to them under an institu - tion's funds-availability policy. w If you have any questions related to the upcoming Reg. CC changes, don’t hesitate to contact us on the C/A hotline. If your bank has adopted an availability policy more favorable than that required under Regulation CC, it may delay availability, but only up to the maximum time frame allowed by Regulation CC. This means that if your bank offers next day availability, but it decides to delay availability, it must still make $200 available on the next business day. On July 1, 2020, the $200 amount will increase to $225. So, your policy regarding longer delays will need to be updated to reflect this new $225 amount. This also means that your fund’s availability policy disclosure will need to be updated and a change in terms notice will need to be provided.