Business Glossary

federal law enacted by Congress in 1987 limiting check hold on checks deposited into a bank account, and requiring banks and other depository financial institutions to follow a uniform funds availability schedule in processing checks or drafts deposited into an account. Under the Expedited Funds Availability Act, the first $100 of a check is to be available for use at the opening of business the day after a deposit is made, remaining funds on the second day after the deposit if payable by a local bank, and within five days if drawn on more distant banks, after September 1, 1990. Cash deposits, U.S. Treasury checks, official bank checks (cashier's checks, certified checks, and teller's checks), and checks paid by government agencies are also included in checks subject to next day availability. The Expedited Funds Availability Act is implemented by Federal Reserve Regulation CC.

legislation passed in 1988 by the U.S. Congress to facilitate movement of checks through the collection system. As the result of this Act, the Federal Reserve has established rules for the endorsement of checks stipulating that the endorsement must be within an area of 1½ inches from the left edge of the back of the check and no additional marks or notations can be made on the back of the check beyond this 1½ inch boundary.