District Circular Letters
July 19, 1999
REGULATION CC:
MAXIMUM HOLD FOR NONLOCAL CHECKS
To All Depository Institutions
in the Twelfth Federal Reserve District
Withdrawal of Proposal to Shorten the Availability Schedule for
Nonlocal Checks (Docket
R-1031)
In December 1998, the Federal Reserve Board requested comment on a proposed
modification to its Regulation CC that would have shortened the maximum
hold for many nonlocal checks from five to four business days (see our letter
of December 18, 1998). The Board has now decided to withdraw this proposal.
The Board concluded that return times do not support shortening the permissible
holds on nonlocal checks and that the costs and potential risks of shortening
holds on all or some nonlocal checks would outweigh the likely benefits.
This decision was based on an analysis of the issues raised by commenters
in response to the December 1998 request for comment.
Copies
Copies of the Board's notice (Docket
R-1031) are available from our Corporate Services Department.
To request copies to be sent via mail, please call (415) 974-2748.
To request copies to be sent via fax, please call (415) 974-3333,
and specify document numbers 4133.
Additional Information
For additional information regarding Regulation CC, please contact our Legal
Department, at (415) 974-2256.
FEDERAL RESERVE BANK OF SAN FRANCISCO
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