Reg CC Funds Availability
Reg CC Funds Availability
Title: Funds Availability Policy
(Regulation CC)
Owner: Chief Executive Officer
Approved By: Chief Compliance Officer
Effective Date: 12/08/2022
Last Revision/Approval Date: 7/11/2024
Funds Availability Policy
Overview
It is the policy of Paybotic Financial (“Paybotic Financial” or the “Company”) to comply with the
Expedited Funds Availability Act (“EFAA”) and its implementing Regulation CC, which are
applicable based on Paybotic Financial’s offering of deposit transaction accounts through its
relationship with Regent Bank (the “Bank”).
The regulation sets forth the requirement that depository institutions make funds deposited into
transaction accounts available according to specified time schedules and that they disclose their
funds availability policies to their customers, and Paybotic Financial complies with these
requirements on behalf of the Bank.
Scope
This Policy applies to Paybotic Financial executive management, employees, and third-party
service providers.
Key Definitions
A. Account. An account is a ‘‘deposit’’ (as defined in Executive Leadership Team’s
Regulation D, in 12 CFR 204.2(a)(1)(i)) that is a ‘‘transaction account’’ (as defined in 12
CFR 204.2(e)). ‘‘Account’’ encompasses consumer and corporate accounts and includes
accounts from which the account holder is permitted to make transfers or withdrawals by
any of the following:
● Negotiable instrument
● Payment order of withdrawal● Telephone transfer
● Electronic payment
B. Business and Banking Days.
● A business day is any day except Saturday, Sunday, and a legal holiday (standard
Federal Reserve holiday schedule).
● A banking day is a business day on which a bank is open for substantially all its
banking activities. Even though a bank may be open for regular business on a
Saturday, that day is not considered a banking day for purposes of Regulation CC
because Saturday is never a ‘‘business day’’ under the regulation. The fact that
one branch is open to the public for substantially all its banking activities does not
necessarily mean that specific day is a banking day for the other branches of the
bank.
C. Electronic payment. A wire transfer or an ACH credit transfer.
D. Government Checks. U.S. Treasury checks, USPS money orders, state and local
government checks, and checks drawn on a Federal Reserve Bank or an FHLB.
E. New Account. The first thirty calendar days an account is open, beginning on the date the
account is established (an account is not considered “new” if each customer on the
account has had, within thirty calendar days before the account is established, another
account at the Company for at least thirty calendar days).
Responsibilities
Executive Leadership Team
The Executive Leadership Team is ultimately responsible for the Company’s compliance with
applicable regulations, as well as setting an appropriate culture of Compliance throughout the
organization and ensuring compliance functions have the appropriate level of staffing, prominence
and authority throughout the organization. Executive Leadership Team will receive periodic
reporting from Compliance including any issues or updates related to Regulation CC.
Chief Compliance Officer
The Paybotic Financial Compliance Officer, or appointee, is designated by the company and is
responsible for owning, maintaining and enforcing this Policy. The Compliance Officer will institute
proper controls that ensure the requirements of this Policy are followed. Additionally, the
Compliance Officer identifies and ensures Company managers and employees who are affected
by this Policy are made aware of its requirements. The Compliance Officer will review and approve
this Policy annually, or more frequently if regulatory changes take place or the Company makes
changes to its products or processes.Business Owners and Operational Managers
Business owners and operational managers are responsible for implementing and maintaining
processes to meet the requirements outlined in this Policy. Business owners and operational
managers should review and understand this Policy; complete all assigned training related to
Regulation CC; escalate any identified issues or errors to Compliance upon discovery; and
develop and implement corrective action plans where necessary to address audit findings or
compliance issues.
Policy Requirements
This Policy outlines availability and disclosure requirements under Regulation CC. However, it
should be noted that Paybotic Financial only permits the following types of deposits:
● ACH transfers
● Direct deposit
● Mobile remote deposit checks with exceptions noted below
● Cash made via our cash logistics service
Paybotic Financial does not accept the following types of deposits:
● Deposits made in cash that is sent to the Bank instead of through a cash in transit service
for commercial customers;
● ATM deposits; or
● Personal checks, cashier’s checks, money orders, foreign currency
Funds Availability
It is Paybotic Financial’s policy to make funds available based on requirements set forth under
Regulation CC.
Paybotic Financial generally allows same-day availability for electronic direct deposits. Cash
received via cash in transit services for commercial customers are available on the date of receipt
at the bank. Deposits made through mobile remote deposit checks are made available in 5
business days or less. ACH transfers from linked external accounts may take up to five business
days from the date the transfer was initiated.
Exceptions
It may be determined by Paybotic Financial that a delay in the ability to withdraw funds is
necessary, and a deposit hold past the days noted above is placed. In such a case, the funds will
generally be available within 5 to 7 business days.
While this is Paybotic Financial’s general policy, there are other exceptions that may exist as set
forth in the regulation, for the following situations:● New accounts
○ These are exempted from the availability schedules for deposits of local checks.
However, next-day availability is required for electronic payments.
○ The first $5,525 of a day’s aggregate deposits of government checks (including
federal, state, and local governments), cashier’s, certified, teller’s, depository, or
traveler’s checks (as of time of deposit) must be given next-day availability. The
amount in excess of $5,525 must be made available no later than the ninth
business day following the day of deposit.
● Large deposits
○ A hold may be applied to the amount in excess of $5,525 on any one day
● Checks that have been returned unpaid and are being redeposited
○ The Company may delay the availability of funds from a check if the check had
previously been deposited and returned unpaid
○ Note, this exception does not apply to checks that were previously returned unpaid
because of a missing endorsement or because the check was post dated when
presented
● Deposit to accounts that have been repeatedly overdrawn
○ The customer’s account may be considered repeatedly overdrawn if:
■ On six or more banking days within the preceding six months, the account
balance is negative, or the account balance would have become negative
if checks or other charges to the account had been paid; or
■ On two or more banking days within the preceding six months, the account
balance is negative, or the account balance would have become negative,
in the amount of $5,525 or more, if checks or other charges to the account
had been paid.
● Cases in which the Company has reasonable cause to believe the check being deposited
is uncollectible
○ The basis for reasonable cause may include, for example, communication with the
paying bank indicating that:
■ A stop-payment order has been placed on the check
■ There are insufficient funds in the drawer’s account to cover the check
■ The check will be returned unpaid
○ The reasonable-cause exception may also be invoked in cases in which
■ The check was deposited six months after the date of the check (stale date)
■ The check was postdated (future date)
■ The depositary bank believes that the depositor may be engaged in check
kiting
■ The depositary bank has other confidential information, such as the
insolvency or pending insolvency of the customer
○ The reasonable-cause exception may not be invoked because of either
■ The race or national origin of the depositor or■ The fact that the paying bank is located in a rural area and the depositary
bank will not have time to learn of nonpayment of the check before the
funds have to be made available under the availability schedules in place.
● Emergency conditions
○ An interruption of communications or computer or other equipment facilities; or
○ Suspension of payments by another depository institution, war, or an emergency
condition beyond the control of the depositary bank.
Notice of Exceptions
If Paybotic Financial invokes one of the exceptions to the availability schedule (except new-
account exception), the customer will be provided a written notice which will include the following:
● The customer’s account number;
● The date of the deposit;
● The amount of the deposit that will be delayed;
● The reason why the exception was invoked; and
● The day the funds will be available for withdrawal (unless unknown due to emergency
situation).
This notice will be delivered to the customer no later than the business day following the banking
day of deposit.
Disclosures of Funds Availability
Paybotic Financial complies with the availability disclosure requirements of Section 229.16(b) by
including the availability schedule in the Paybotic Financial Funds Availability Policy.
Additionally, Paybotic Financial will comply with Section 229.18(d) by providing the above Funds
Availability schedule upon request. Finally, Paybotic Financial will comply with Section 229.18(e)
by notifying consumers at least 30 days prior to a change to the availability schedule with an
adverse impact or within 30 days after the change if it results in faster availability.
Monitoring and Testing
Paybotic Financial will ensure that compliance with EFAA requirements is independently
monitored on an ongoing basis. Reporting of the results will be maintained and reported to
Executive Leadership Team.
Training
Employees of the Company determined to have a job function impacted by EFAA requirements
will receive training at least annually.Record Retention
Certain requirements under Regulation CC specifically require Paybotic Financial to maintain
evidence of compliance for at least two years. This includes notices required when a “reasonable
cause” exception is invoked.
Policy History
The history of this document is outlined in the table below.
Date of Action Responsible Party Description of Policy Action
7/11/2024 Chief Compliance Officer Updated language to add Cash made via our
cash in transit service as an acceptable type of
deposit
2/29/2024 Chief Compliance Officer Reviewed and updated
– Removed mentions of the Board and
replaced them with Executive Leadership
Team
12/08/2022 Head of Compliance First version publishedReg CC Funds Availability Reference Aid
7/1/2020
Types of Deposited Items
Deposited In a Payee’s Account Deposited
Yes (i.e., check payable to Mbr/Acct Hldr) No (i.e., check not payable to Mbr/Acct Hldr) in Foreign
In Person Not in Person In Person Not in Person ATM
Cash Next Day Avail. 2 Day NA, follow holds to the left 5 day*
Types of Deposited Items
Deposited In a Payee’s Account Deposited
Yes (i.e., check payable to Mbr/Acct Hldr) No (i.e., check not payable to Mbr/Acct Hldr) in Foreign
In Person Not in Person In Person Not in Person ATM
Electronic Deposits – Wire Next Day Availability NA, follow holds to the left NA
Electronic Deposits – ACH SAME Day actually received NA, follow holds to the left NA
Types of Deposited Items
Deposited In a Payee’s Account Deposited
Yes (i.e., check payable to Mbr/Acct Hldr) No (i.e., check not payable to Mbr/Acct Hldr) in Foreign
In Person Not in Person In Person Not in Person ATM
On Us < $5525 Next Day Availability up to $5525 5 day*
New Account $0 Next Day, No Maximum hold No Max
Large Deposit > $5525 On amounts up to $5525, Next Day Availability 5 day up to $5525
Only on amounts >$5525, 2 day 11 day > $5525
Redeposited Items (A)
$0 Next Day, 2 day 11 day
Repeat Overdraft Acct (B)
Reasonable Cause
Emergency Condition** $0 Next Day, No Limit
Types of Deposited Items
Deposited In a Payee’s Account Deposited
Yes (i.e., check payable to Mbr/Acct Hldr) No (i.e., check not payable to Mbr/Acct Hldr) in Foreign
In Person Not in Person In Person Not in Person ATM
Regular Checks < $5525 Next day $225, 2nd day $450 cash by 5PM, 3rd day remainder up to $5525. 5 day*
New Account $0 Next Day, No Maximum hold No Max
Large Deposit > $5525 On amts up to $5525, Next day $225, 2nd day $450 cash by 5PM, 3rd day remainder to $5525. 5 day up to $5525
Only on amounts >$5525, 7 day 11 day > $5525
Redeposited Items (A)
$0 Next Day, 7 day 11 day
Repeat Overdraft Acct (B)
Reasonable Cause
Emergency Condition** $0 Next Day, No Limit
Types of Deposited Items
Deposited In a Payee’s Account Deposited
Yes (i.e., check payable to Mbr/Acct Hldr) No (i.e., check not payable to Mbr/Acct Hldr) in Foreign
In Person Not in Person In Person Not in Person ATM
US Treasury Checks < $5525 Next Day Avail. up to $5525 Next Day $225, 2nd day $450 cash by 5pm, 5 day*
RTTN begins with “0000” 3rd day remainder up to $5525
New Account Next Day up to $5525, 0$ Next day No Max
9 day on amounts > $5525 No Max hold
Large Deposit > $5525
On amounts up to $5525, Next Day Avail. Next Day $225, 2nd day $450 cash by 5pm, 5 day up to $5525
3rd day remainder up to $5525
Only on amounts >$5525, 7 day 11 day > $5525
Redeposited Items (A)
$0 Next Day, 7 day 11 day
Repeat Overdraft Acct (B)
Reasonable Cause
Emergency Condition** $0 Next Day, No LimitTypes of Deposited Items
Deposited In a Payee’s Account Deposited
Yes (i.e., check payable to Mbr/Acct Hldr) No (i.e., check not payable to Mbr/Acct Hldr) in Foreign
In Person Not in Person In Person Not in Person ATM
US Postal Money Orders Next Day Avail. $225 Next Day, Next Day $225, 2nd day $450 cash by 5pm, 5 day*
Max Domestic = $1000 up to $5525 2 day on remainder 3rd day remainder up to $5525
Max Foreign = $700 up to $5525
Gov’t (state or local)
FRB or FHLB
Cashiers, Teller, Certified
New Account Next day up to $5525 $0 Next Day 0$ Next day No Max
2 day up to $5525 No Max hold
9 day on amt > $5525
Large Deposit > $5525
Next Day up to $5525 $225 Nex Day, 2 day Next Day $225, 2nd day $450 cash by 5pm, 5 day up to $5525
on rest up to $5525 3rd day remainder up to $5525
Only on amounts >$5525, 7 day 11 day > $5525
Redeposited Items (A)
$0 Next Day, 7 day 11 day
Repeat Overdraft Acct (B)
Reasonable Cause
Emergency Condition** $0 Next Day, No Limit
*Note that 229.12(d) allows hold on Foreign ATM deposits to be extended by 1 day beyond the 5 if $450 cash available by 5PM on 5th day.
** Emergency condition = interruption of communication, computer, weather delay, or other conditions beyond our control.
(A) Repeated Items – exception does not apply if the check is corrected for missing endorsement or post dated check now good
(B) Repeated Overdraft Account = in the past 6 mo’s the account was negative 6 days or had a negative balance of at least $5525 two days