Business Definition for: availability schedule
availability schedule
table showing the number of days needed to clear a deposited check. Under the
expedited funds availability act
, financial institutions must give their customers access to deposited funds within a fixed number of days, depending on whether a check is drawn on a local or nonlocal bank. Local checks (checks deposited at a bank in the same Federal Reserve Regional Check Processing Center as the paying bank) must be available for use within two business days after the day of deposit.
See also
check hold
,
account hold
Related Terms:
number of days a bank can legally hold uncollected funds before crediting deposited funds to a customer's account. The Expedited Funds Availability Act of 1987 limits check holds to two business days for local checks and five days for nonlocal checks after September 1, 1990. The first $100 of any check must be available for use the next business day.
- check holdor the number of days that a bank can legally hold uncollected balances before giving customers use of those funds. Beginning in 1990, the expedited funds availability act accelerated the availability schedule by requiring banks to make the first $100 available for withdrawal at the opening of business the day after funds are deposited, with remaining funds available on the second day after deposit if drawn on local banks and within five days if drawn on nonlocal banks.See also local check; Regulation CC.
- notation limiting an account owner's access to his or her funds, as when a savings account is used as collateral for a loan.
Referring Terms:
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
