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pdfSupporting Statement for the
Recordkeeping and Disclosure Requirements Associated with Regulation CC
(FR CC; OMB No. 7100-0235)
Summary
The Board of Governors of the Federal Reserve System (Board), under authority
delegated by the Office of Management and Budget (OMB), has extended for three years, with
revision, the Recordkeeping and Disclosure Requirements Associated with Regulation CC
(FR CC; OMB No. 7100-0235). Regulation CC - Availability of Funds and Collection of Checks
(12 CFR Part 229) requires banks to make funds deposited in transaction accounts available
within specified time periods, disclose their funds availability policies to customers, begin
accruing interest on such deposits promptly, and provide certain notices in connection with the
nonpayment of certain checks.1 Regulation CC also requires banks to provide consumer
awareness disclosures and other notices regarding substitute checks. Regulation CC includes
model disclosure forms, clauses, notices, and commentary to ease compliance with these
requirements. Regulation CC contains both recordkeeping and disclosure requirements. The
Paperwork Reduction Act (PRA) classifies these recordkeeping and disclosure requirements as
an information collection. Although Regulation CC applies to all banks, the Board accounts for
only the burden imposed on the state member banks and uninsured state branches and agencies
of foreign banks that it supervises.
The Board revised the FR CC to take into account certain existing disclosure
requirements in Regulation CC that include information collections, but had not been included in
previous clearances.
The current estimated total annual burden for the FR CC is 134,327 hours, and would
increase to 134,352 hours. The revisions would result in an increase of 25 hours.
Background and Justification
Regulation CC implements the Expedited Funds Availability Act of 1987 (EFA Act)2 and
the Check Clearing for the 21st Century Act of 2003 (Check 21 Act).3 The EFA Act was enacted
to provide depositors of checks with prompt funds availability and to foster improvements in
check collection and return processes. Subpart B of Regulation CC implements the EFA Act’s
funds availability provisions and specifies availability schedules within which banks must make
funds available for withdrawal. Subpart B also implements the EFA Act’s rules regarding
exceptions to the funds availability schedules,4 disclosure of funds availability policies, and
1
For purposes of Regulation CC, “bank” includes various types of depository institutions, such as insured banks,
savings associations, insured credit unions, and U.S. branches and agencies of foreign banks. See 12 CFR 229.2(e).
2
See 12 U.S.C. § 4001 et seq.
3
See 12 U.S.C. § 5001 et seq.
4
The EFA Act and Regulation CC permit banks to delay the availability of funds for certain types of deposits, such
as if the depositary bank has reasonable cause to believe that the check is uncollectible from the paying bank. See 12
U.S.C. § 4003 and 12 CFR Part 213.
payment of interest.5 Subpart C of Regulation CC implements the EFA Act’s provisions
regarding forward collection and return of checks.6 Subpart C includes provisions to speed the
collection and return of checks, such as requirements for the expeditious return responsibilities of
paying and returning banks, authorization to send returns directly to depositary banks, and
notification of nonpayment of large-dollar returned checks. Certain of these provisions in
subparts B and C of Regulation CC (sections 229.10, 229.11, 229.13, 229.16, 229.17, 229.18,
229.21, 229.31, 229.32 and 229.33, as explained further below) contain information collection
requirements for purposes of the PRA.
The Check 21 Act, which became effective in October 2004, facilitated electronic
collection and return of checks by permitting banks to create a paper “substitute check” from an
electronic image of a paper check and from electronic information related to the paper check.7
The Check 21 Act authorized banks to provide substitute checks to a bank or a customer that had
not agreed to electronic exchange. Subpart D of Regulation CC implements the requirements of
the Check 21 Act relating to banks that create or receive substitute checks or paper or electronic
representations of substitute checks. Subpart D includes, among other things, provisions
concerning requirements a substitute check must meet to be the legal equivalent of an original
check; the warranties and indemnity associated with substitute checks; expedited recredit
procedures for consumers and banks, which are designed to address errors relating to substitute
checks; and the consumer awareness disclosure and other notices regarding substitute checks.
Certain of these provisions in subpart D of Regulation CC (sections 229.54, 229.55, and 229.57,
as explained further below) contain information collection requirements for purposes of the
PRA.
Description of Information Collection
Recordkeeping Requirements
Sections 229.13(g)(5) and 229.21(g) Record retention
Section 229.21(g) requires banks to retain for no less than two years evidence of
compliance with requirements under subpart B of Regulation CC.8 Regulation CC generally does
not specify the kind of records that must be retained for this purpose. However, consistent with
5
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) made certain amendments to
the EFA Act. These amendments became effective on July 21, 2011. As a result of these amendments, the Board and
the Consumer Financial Protection Bureau (CFPB) assumed joint rulemaking authority with respect to subpart B of
Regulation CC.
6
The Board adopted the provisions of subpart C pursuant to the authority granted to it in sections 609(b) and (c) of
the EFA Act (12 U.S.C. §§ 4008(b) and (c)).
7
A substitute check is a paper reproduction of an original check that contains an image of the front and back of the
original check and is suitable for automated processing in the same manner as the original check.
8
Regulation CC also specifies that if a bank has actual notice that it is being investigated, or is subject to an
enforcement proceeding by an agency charged with monitoring that bank’s compliance with the EFA Act and
subpart B of Regulation CC, or has been served with notice of an individual or class action related to the bank’s
failure to comply with any requirement imposed under subpart B of Regulation CC, it must retain the records
pertaining to the action or proceeding pending final disposition of the matter, unless an earlier time is allowed by
order of the agency or court.
2
the EFA Act,9 section 229.13(g)(5) of Regulation CC requires that banks retain a record for not
less than two years of each notice provided to a depositor pursuant to the bank’s application of
the reasonable cause to doubt collectibility exception hold, together with a brief statement of the
facts giving rise to the bank’s reason to doubt the collectibility of the check. The Board estimates
no additional burden for this requirement, because banks are anticipated to retain records for at
least this duration in their usual course of business.
Disclosure Requirements10
Sections 229.11(c) and 229.18(e) Notices of quinquennial inflation adjustment
The EFA Act requires certain dollar thresholds in Regulation CC to be adjusted for
inflation every five years.11 These dollar amount adjustments are prescribed in several parts of
section 229.12 Such periodic inflation adjustments are considered a change in policy that cause
banks to need to update their disclosures to match the new information and send notice to holders
of consumer accounts.
Section 229.13(g) Notice of exceptions
Regulation CC permits banks to invoke certain exceptions to the availability schedules
required by the regulation. Whenever a bank invokes such an exception, it must notify the
customer in writing. Special rules apply to exceptions pertaining to large dollar deposits and
redeposited checks into non-consumer accounts, as well as an exception pertaining to repeated
overdrafts. The notice must include a specific number code that identifies the customer’s
account, the date of deposit, the amount being delayed, the reason the exception was invoked,
and when funds will be available for withdrawal.
Sections 229.16 and 229.17 Specific availability policy disclosure and Initial
disclosures
Before opening a new account, a bank must provide a disclosure describing the bank’s
policy as to when funds deposited in an account are available for withdrawal. The disclosure
must reflect the policy followed by the bank in most cases. The specific availability policy
disclosure must contain the following, as applicable:
• a summary of the bank’s availability policy,
• a description of the categories of deposits or checks used by the bank when it delays
availability, how to determine the category to which a particular deposit or check
belongs, and when each category will be available for withdrawal,
• a description of any of the exceptions permitted by Regulation CC that may be invoked
by the bank, including the time following a deposit that funds generally will be available
9
12 U.S.C. § 4003(c)(4).
Section 229.15 prescribes general requirements for disclosures required by subpart B of Regulation CC.
11
12 U.S.C. § 4006(f) and 12 CFR 229.11.
12
See 12 CFR 229.10(c)(1)(vii), 229.12(d), 229.13(a), 229.13(b), 229.13(d), and 229.21(a). By statute, these dollar
amounts are indexed to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as
published by the Bureau of Labor Statistics.
10
3
•
•
for withdrawal and a statement that the bank will notify the customer if the bank invokes
one of the exceptions,
a description, as specified in section 229.16(c) below, of any case-by-case policy of
delaying availability that may result in deposited funds being available for withdrawal
later than the time periods stated in the bank’s specific availability policy, and
a description of how the customer can differentiate between proprietary and
nonproprietary automatic teller machines (ATMs), if the bank makes funds from deposits
at nonproprietary ATMs available for withdrawal later than funds from deposits at
proprietary ATMs.
Section 229.16(c) Longer delays on a case-by-case basis – Notice in specific policy
disclosure and Notice at time of case-by-case delay
If a bank has a policy of generally making funds available for withdrawal sooner than
required under Regulation CC but delaying availability on a case-by-case basis, the bank must
provide advance notice of the policy in its specific policy disclosure and notice each time a delay
is imposed. The case-by-case notice must include a specific number code that identifies the
customer’s account, the date of deposit, the amount being delayed, and the date funds will be
available for withdrawal.
Section 229.18(a) Notice on preprinted deposit slips
A bank must include on all preprinted deposit slips furnished to its customers a notice
that deposits may not be available for immediate withdrawal. Because this notice is a
standardized, machine-generated message on forms the bank would be using in its normal course
of business and does not change from one individual account to another, the Board estimates that
the burden for this requirement is negligible.
Sections 229.18(b) and 229.18(c) Locations where employees accept consumer
deposits and Automated teller machines
A bank must post conspicuously in each location where its employees receive deposits to
consumer accounts a notice that sets forth the time periods applicable to the availability of funds
deposited in a consumer account.
A bank must also post or provide a notice at each ATM location that funds deposited in
the ATM may not be available for immediate withdrawal. A bank that operates an off-premises
ATM from which deposits are removed not more than two times each week must disclose at or
on the ATM the days on which deposits made at the ATM will be considered received.
Section 229.18(d) Disclosure of specific availability policy to any person upon
request
A bank must provide its specific availability policy disclosure to any person who makes
an oral or written request regarding the policy. Because banks are required to have this
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information already, the Board estimates that the burden to fulfill these additional requests is
negligible.
Section 229.18(e) Notice of changes in policy
A bank must send a notice to holders of consumer accounts at least 30 days before
implementing a change to the bank’s availability policy regarding such accounts, except that a
change that expedites the availability of funds may be disclosed not later than 30 days after
implementation.
A bank that has provided its customers with a list of ATMs (to fulfill the requirement that
it explain its availability policy for proprietary and nonproprietary ATMs under section
229.16(b)(5)), must provide its customers with an updated list of ATMs once a year if there are
changes in the list of ATMs previously disclosed to the customers.13
Section 229.31(c) Notice of nonpayment
If a paying bank determines not to pay a check in the amount of $5,000 or more, it
generally must provide notice of nonpayment such that the notice would normally be received by
the depositary bank not later than 2 p.m. (local time of the depositary bank) on the second
business day following the banking day on which the check was presented to the paying bank.
This notice must include certain information as specified in Regulation CC.14
Section 229.33(h) Notification to customer
If the depositary bank receives a returned check, notice of nonpayment, or notice of
recovery under section 229.35(b), it must send or give notice to its customer of the facts by
midnight of the banking day following the banking day on which it received the returned check,
notice of nonpayment, or notice of recovery, or within a longer reasonable time. The Board
estimates a lower additional burden for this requirement because, even absent this requirement,
banks presumably would provide a similar notification to customers in the usual and customary
course of their business. While a specific time period is required, such notice is anticipated to be
largely automated.
Sections 229.54 Expedited recredit claim for consumers
The Check 21 Act and Regulation CC provide that, if certain conditions are met, a
consumer may make a claim for expedited recredit for addressing errors relating to substitute
checks.15 The consumer’s expedited recredit claim must include certain information described in
the Check 21 Act and section 229.54 of Regulation CC. If a consumer attempts to make an
expedited recredit claim but fails to provide all the information required to constitute a claim, the
bank must inform the consumer that the claim is not complete and identify the information that is
13
See 12 CFR Part 229, Appendix C, section XII.E(3).
See 12 CFR 229.31(c)(2) and 229.31(e)-(f).
15
12 U.S.C. § 5006 and 12 CFR 229.54(a).
14
5
missing.16 A bank that requires a consumer to submit an expedited recredit claim in writing must
inform a consumer who submits a claim orally of the written claim requirement at the time of the
oral claim.17 In addition, a bank must provide notice to the consumer when the bank validates or
denies a consumer’s expedited recredit claim or reverses an amount that it previously recredited.
These notices must include certain information as specified in the Check 21 Act and section
229.54 of Regulation CC.
Section 229.55 Expedited recredit claim for banks
In certain circumstances, the Check 21 Act and Regulation CC give a bank the right to
make an expedited credit claim against an indemnifying bank with respect to a substitute check.
The bank’s expedited credit claim must include certain information and follow certain
procedures described in the Check 21 Act and section 229.55 of Regulation CC. Section 229.60
of Regulation CC provides that any provision of section 229.55 may be varied by agreement of
the banks involved.
Section 229.57 Consumer awareness
The Check 21 Act and Regulation CC require banks to provide disclosures to consumer
customers regarding substitute checks and consumer recredit rights. Banks must provide these
disclosures to a consumer at the time the customer relationship is initiated if the consumer
receives paid original checks or paid substitute checks with his or her periodic account statement.
Banks also must provide these disclosures to certain other consumers who receive substitute
checks on an occasional basis, as described in section 229.57(b)(2) of Regulation CC.
Respondent Panel
Although Regulation CC applies to all banks, the Board accounts for only the burden
imposed on the state member banks and uninsured state branches and agencies of foreign banks
that it supervises.
Frequency and Time Schedule
With certain exceptions noted above, the disclosure requirements for Regulation CC are
triggered by specific events and must be provided to consumers within the time periods
established by the law and regulation. There is no reporting form associated with the
requirements of Regulation CC; disclosures or notifications pertaining to a particular transaction
or consumer account are not publicly available. Model disclosure forms, clauses, and notices are
appended to the regulation to ease compliance.
16
17
12 CFR 229.54(b)(2)(ii).
See 12 CFR 229.54(b)(3)(ii).
6
Revisions to the FR CC
The Board revised the FR CC to take into account sections 229.10(c)(3), 229.31(f), and
229.32(d) of Regulation CC that include information collections, but had not been included in
previous clearances.
Section 229.10(c)(3) Special deposit slip
As a condition to making the funds available for withdrawal not later than the business
day after the banking day on which the funds are deposited, a depositary bank may require that
certain types of checks be deposited with a special deposit slip or deposit envelope that identifies
the type of check. If a depositary bank requires the use of a special deposit slip or deposit
envelope, the bank must either provide the special deposit slip or deposit envelope to its
customers or inform its customers how the slip or envelope may be prepared or obtained and
make the slip or envelope reasonably available.
Sections 229.31(f) and 229.32(d) Notices of nonpayment
Paying bank notice in lieu of return - If a check is unavailable for return, the paying bank
may send in its place a copy of the front and back of the returned check, or, if no such copy is
available, a written notice of nonpayment containing the information specified in section
229.31(c)(2) of Regulation CC.
Returning bank notice in lieu of return - If a check is unavailable for return, the returning
bank may send in its place a copy of the front and back of the returned check, or, if no such copy
is available, a written notice of nonpayment containing the information specified in section
229.31(c) of Regulation CC.
Public Availability of Data
There are no data related to this information collection available to the public.
Legal Status
Section 609 of the EFA Act (12 U.S.C. § 4008), as amended by section 1086 of the
Dodd-Frank Act,18 states that, “the Board, jointly with the Director of the Bureau of Consumer
Financial Protection, shall prescribe regulations (1) to carry out the provisions of this chapter;
(2) to prevent the circumvention or evasion of such provisions; and (3) to facilitate compliance
with such provisions.” Additionally, section 15 of the Check 21 Act (12 U.S.C. § 5014)
authorizes the Board to “prescribe such regulations as the Board determines to be necessary to
implement, prevent circumvention or evasion of, or facilitate compliance with the provisions of
this chapter.” The Board is therefore authorized by these statutory provisions to promulgate the
recordkeeping and disclosure requirements contained in Regulation CC. The recordkeeping and
18
The Dodd-Frank Act made certain amendments to the EFA Act. These amendments became effective on July 21,
2011. As a result of these amendments, the Board and the CFPB assumed joint rulemaking authority with respect to
subpart B of Regulation CC.
7
disclosure requirements in Regulation CC are mandatory. The information that Regulation CC
requires of consumers who are making an expedited recredit claim is required to obtain a benefit.
The information that Regulation CC requires of consumers who are required to use a special
deposit slip is required to obtain a benefit.
Because records required by Regulation CC are maintained at each banking organization,
the Freedom of Information Act (FOIA) would only be implicated if the Board obtained such
records as part of the examination or supervision of a banking organization. In the event the
records are obtained by the Board as part of an examination or supervision of a financial
institution, this information would be considered confidential pursuant to exemption 8 of the
FOIA, which protects information contained in “examination, operating, or condition reports”
obtained in the bank supervisory process (5 U.S.C. § 552(b)(8)).
Consultation Outside the Agency
Pursuant to sections 1086 and 1100H of the Dodd-Frank Act, effective July 21, 2011, the
Board and the CFPB assumed joint rulemaking authority with respect to subpart B of
Regulation CC. Given this joint authority, the Board has communicated with the CFPB regarding
the information collection requirements of Regulation CC.
Public Comments
On April 30, 2025, the Board published an initial notice in the Federal Register (90 FR
17932) requesting public comment for 60 days on the extension, with revision, of the FR CC.
The comment period for this notice expired on June 30, 2025. The Board did not receive any
comments relevant to this collection or the PRA. The Board adopted the extension, with revision,
of the FR CC as originally proposed. On November 17, 2025, the Board published a final notice
in the Federal Register (90 FR 51355).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR CC is 134,327
hours, and would increase to 134,352 with the revisions. The number of respondents is based on
the average number of FR CC filings received and has been updated to 668 as the number of
depository institutions declined from the last reporting cycle. The burden estimate is based on the
standard Board burden calculation methodology. The estimated average hours per response
caused by a particular notice or disclosure requirement depends on several factors, including
whether the notice is machine-generated and whether it is customer-specific. The notices given at
account opening and upon request and the notices posted where consumers make deposits are
disclosures concerning the bank’s policy. They are machine-generated and are not customerspecific; thus, the burden per response is minimal. The notice of changes in policy (including the
annual notice updating the ATM list, if necessary) is not customer-specific, but likely requires
more time to prepare. Also, the timing for these is more uncertain because they are eventtriggered and not given a standard schedule; therefore, the burden per response is greater than for
other notices. Notices given when a bank invokes a case-by-case hold or an exception permitted
by the regulation are customer-specific; therefore, the burden per response associated with these
8
notices is slightly greater. The notice of nonpayment is also customer-specific; however, it is
machine-generated. Therefore, the burden per response associated with this notice is less than the
burden per response associated with other customer-specific notices. These recordkeeping and
disclosure requirements represent approximately 1.8 percent of the Board’s total paperwork
burden.
FR CC
Current
Disclosure
Bank burden
Section 229.11(c)
Quinquennial inflation
adjustments for disclosures
(annualized)
Sections 229.11(c) and 229.18(e)
Notices of quinquennial inflation
adjustments (annualized)
Section 229.13(g)
Notice of exceptions
Sections 229.16 and 229.17
Specific availability policy
disclosure and Initial disclosures
Section 229.16(c)
Longer delays on a case-by-case
basis – Notice in specific policy
disclosure and notice at time of
case-by-case delay
Sections 229.18(b) and
229.18(c)
Locations where employees
accept consumer deposits and
ATMs
Section 229.18(e)
Annual notice of new ATMs
Section 229.18(e)
Notice of changes in policy
Section 229.31(c)
Notices of nonpayment
Section 229.33(h)
Notification to customer
Estimated
number of
respondents19
Estimated
annual
frequency
Estimated
Estimated
average hours annual burden
per response
hours
668
1
8
5,344
668
1
4
2,672
668
2,000
0.05
66,800
668
500
0.02
6,680
668
700
0.05
23,380
668
1
0.25
167
668
1
5
3,340
100
2
20
4,000
668
35
0.02
468
668
370
0.02
4,943
19
Of these respondents, 434 of the 668 respondents and 65 of the 100 respondents are considered small entities as
defined by the Small Business Administration using current size standards (i.e., entities with less than $850 million
in total assets). See 13 CFR 121.201. There are no special accommodations given to mitigate the burden on small
institutions.
9
Section 229.54
Expedited recredit claim for
consumers
Section 229.55
Expedited recredit claim for
banks
Section 229.57
Consumer awareness
Consumer burden
Section 229.54(b)(2)
Expedited recredit claim notice
Current Total
Proposed
Disclosure
Bank burden
Section 229.10(c)(3)
Special deposit slip
Section 229.11(c)
Quinquennial inflation
adjustments for disclosures
(annualized)
Sections 229.11(c) and 229.18(e)
Notices of quinquennial inflation
adjustments (annualized)
Section 229.13(g)
Notice of exceptions
Sections 229.16 and 229.17
Specific availability policy
disclosure and Initial disclosures
Section 229.16(c)
Longer delays on a case-by-case
basis – Notice in specific policy
disclosure and notice at time of
case-by-case delay
Sections 229.18(b) and
229.18(c)
Locations where employees
accept consumer deposits and
ATMs
Section 229.18(e)
Annual notice of new ATMs
Section 229.18(e)
Notice of changes in policy
668
35
0.25
5,845
668
15
0.25
2,505
668
300
0.02
4,008
668
25
0.25
4,175
134,327
100
1
0.25
25
668
1
8
5,344
668
1
4
2,672
668
2,000
0.05
66,800
668
500
0.02
6,680
668
700
0.05
23,380
668
1
0.25
167
668
1
5
3,340
100
2
20
4,000
10
Sections 229.31(c), 229.31(f),
and 229.32(d)
Notices of nonpayment
Section 229.33(h)
Notification to customer
Section 229.54
Expedited recredit claim for
consumers
Section 229.55
Expedited recredit claim for
banks
Section 229.57
Consumer awareness
Consumer burden
Section 229.54(b)(2)
Expedited recredit claim notice
Proposed Total
668
35
0.02
468
668
370
0.02
4,943
668
35
0.25
5,845
668
15
0.25
2,505
668
300
0.02
4,008
668
25
0.25
4,175
134,352
Change
25
The estimated total annual cost to the public for the FR CC is $9,528,242 and would
increase to $9,530,046 with the revisions.20
Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
The estimated cost to the Federal Reserve System for collecting and processing this
information collection is negligible.
20
Total cost to the responding public is estimated using the following formula: total burden hours, multiplied by the
cost of staffing, where the cost of staffing is calculated as a percent of time for each occupational group multiplied
by the group’s hourly rate and then summed (30% Office & Administrative Support at $24, 45% Financial
Managers at $87, 15% Lawyers at $88, and 10% Chief Executives at $126). Hourly rates for each occupational
group are the (rounded) mean hourly wages from the Bureau of Labor Statistics (BLS), Occupational Employment
and Wages, May 2024, published April 2, 2025, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are
defined using the BLS Standard Occupational Classification System, https://www.bls.gov/soc/. The average
consumer cost of $33 is estimated using data from the Bureau of Labor Statistics (BLS), Occupational Employment
and Wages, May 2024, published April 2, 2025, https://www.bls.gov/news.release/ocwage.t01.htm.
11
| File Type | application/pdf |
| File Modified | 2025-12-29 |
| File Created | 2025-12-29 |