What Is Regulation CC? 


Regulation CC, also known as the Expedited Funds Availability Act, is a United States law that was enacted by Congress in 1987.

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Image source: US Congress

It deals mainly with the availability of funds and the collection of checks and sets limits on the length of time a bank can place holds on deposited checks.

According to Regulation CC, the maximum hold a bank may place depends on the type of deposit being made. Regulation CC stipulates four types of holds that banks may place on a deposit:

  • statutory (this hold is placed when none of the other holds apply)
  • large deposit (this hold is placed on deposits of greater than $5,000 into a single account on a single business day)
  • new account (this hold is placed on deposits into new accounts that have been open for less than 30 days)
  • exception (this hold is placed when the bank has reason to believe that the check is fraudulent or worthless or other unusual circumstances apply)

As long as a given deposit meets the legal requirements for a given type of hold, the bank may apply that hold.

Banks often prefer to place the longest hold possible on deposits, especially large ones, and will act accordingly in keeping with Regulation CC.

There are several important exceptions to the rules set forth by Regulation CC:

  • If a consumer has an account with a given bank that is less than 30 days old but also has an account more than 30 days old, the bank cannot use the new account hold.
  • If a consumer has even one account that qualifies for the exception rule, the exception hold can be placed on deposits into other accounts held by that consumer.
  • Regulation CC stipulates that certain items, such as cashier’s checks, money orders, treasury checks, and government checks, must be made available faster than other deposits.
  • Interest-bearing accounts must produce interest from the time the funds are deposited, regardless of hold lengths.


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