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TCH Comments on Proposed Changes to Regulation CC Funds Availability Rules

The Clearing House (TCH) responded to a joint Federal Reserve Board and CFPB request for comments on proposed changes to funds availability requirements and check hold times under Regulation CC, Subpart B. Among other things, TCH’s comment letter opposed a proposal to shorten the safe harbor for the regulation’s “reasonable hold extension” from five business days to two business days when an exception to general funds availability rules applies (such as when a depositary bank has reasonable cause to believe a check is uncollectible from the paying bank). Among other things, TCH noted that the availability of effective Regulation CC hold exceptions, and the ability to place holds and mitigate risk and potential losses when needed, may encourage banks to give faster availability than is required under Regulation CC in normal, non-exception circumstances. TCH also commented on various other proposed changes to Regulation CC’s funds availability rules, and supported a statutorily-mandated set of updates to adjust dollar amounts in the regulation for inflation.