Regulation CC is the U.S. rule governing funds availability, check collection and returns, and substitute-check rights under the EFAA and Check 21.
Regulation CC is the U.S. federal regulation, codified at 12 CFR Part 229, that implements the Expedited Funds Availability Act and the Check Clearing for the 21st Century Act. It addresses when funds in covered accounts must be made available, what banks must disclose, how checks and electronic checks are collected and returned, and how substitute checks are treated.
Regulation CC is not another name for the Expedited Funds Availability Act. The EFAA and Check 21 are statutes; Regulation CC contains the implementing rules.
| Part | Main subject | Practical question |
|---|---|---|
| Subpart A | Purpose, scope, definitions, and enforcement | Which account, bank, item, or transaction is covered? |
| Subpart B | Availability schedules, exceptions, interest, and disclosures | When must covered funds be available for withdrawal? |
| Subpart C | Check and electronic-check collection and return rules | What duties, warranties, notices, and return processes apply between banks? |
| Subpart D | Substitute checks | Is the paper reproduction legally equivalent, and do special recredit rights apply? |
The regulation also includes model disclosures, notices, official commentary, and preemption determinations. Those details matter because a short consumer summary cannot resolve every coverage or timing question.
Subpart B establishes maximum availability schedules for covered deposits to accounts as defined by the regulation. It provides next-business-day treatment for specified deposits and a general schedule for other checks, subject to conditions.
The applicable date can depend on:
Regulation CC contains dollar amounts that are adjusted for inflation on a statutory cycle. The current regulation and the institution’s current disclosure should therefore control instead of an old dollar figure copied from a secondary source.
The Federal Reserve and CFPB made the following adjustments effective July 1, 2025:
| Regulatory amount | Adjusted amount | Where it matters |
|---|---|---|
| Minimum amount | $275 | Portion of certain check deposits subject to next-business-day availability |
| Cash-withdrawal amount | $550 | Permissive adjustment for specified cash withdrawals under the schedule |
| New-account amount | $6,725 | Specified next-day treatment for certain check deposits to qualifying new accounts |
| Large-deposit threshold | $6,725 | Threshold above which the large-deposit exception can apply |
| Repeatedly overdrawn threshold | $6,725 | Amount used in one part of the repeated-overdraft exception test |
These amounts are legal inputs, not a stand-alone availability calculator. Item type, account age, aggregate deposits for the banking day, channel, cutoff, other exceptions, and required notices still matter. The joint final rule provides the adjustment and effective date.
| Situation | General treatment | Evidence to review |
|---|---|---|
| Deposit covered by a next-day rule | Qualifying funds generally receive accelerated availability if conditions are met | Receipt, item type, deposit location, endorsements |
| Other covered check deposit | General availability schedule applies | Banking day, cutoff, account type, policy disclosure |
| New account | Special new-account rules may apply | Account-opening date and item type |
| Large aggregate check deposit | An exception may permit delay above the current threshold | Deposit total and exception notice |
| Redeposited check | An exception may apply, subject to the rule | Prior return and redeposit record |
| Repeated overdrafts | An exception may apply if regulatory conditions are met | Account history and bank notice |
| Reasonable cause to doubt collectability | Delay may be permitted when properly supported | Specific reason, facts, and notice |
| Emergency condition | Delay may be permitted for qualifying disruptions | Event record and operational notice |
An exception is not a blank authorization to delay any deposit. The bank must apply the actual rule and, where required, provide a notice stating the reason and expected availability date.
Assume an established customer deposits an $8,000 local check that is not otherwise entitled to next-day treatment, in person at a branch before the Monday cutoff. Monday, Tuesday, and Wednesday are banking and business days, the account and deposit are covered by Subpart B, and no exception other than the possible large-deposit exception applies. To keep the example focused, assume the bank does not use the separate section 229.12(d) adjustment for withdrawal by cash or similar means.
| Availability point | Illustrative amount | Reasoning |
|---|---|---|
| Tuesday | $275 | Minimum amount for the applicable check deposit is available on the next business day |
| Wednesday | Additional $6,450 | Without another exception, cumulative availability reaches the $6,725 large-deposit threshold under the general schedule |
| Later date stated in a proper notice | Remaining $1,275 | The bank may apply the large-deposit exception to the amount above $6,725 |
The excess amount is $8,000 - $6,725 = $1,275. If the bank does not invoke a valid exception, the ordinary schedule applies to the full remainder. The bank may also make funds available earlier than the regulation requires.
This example is not a universal promise for every Monday deposit. A holiday, deposit after cutoff, new account, different check type, remote channel, repeated overdrafts, reasonable-cause hold, or other fact can change the result. Even when the funds become available, the check can later be returned and the provisional credit reversed.
Regulation CC deliberately separates customer access from check-return risk. A bank can be required to make funds available before it learns that the paying bank has returned the check.
For example, a customer deposits a check and receives access to part of the amount under the applicable schedule. The paying bank later returns the item because the account is closed. The depositary bank may reverse the provisional credit even though the customer previously saw an available balance.
This is why Available Balance, Cleared Funds, and final payment should not be treated as interchangeable labels.
Regulation CC requires covered institutions to disclose their funds-availability policies and contains requirements for certain deposit-location notices, policy changes, and hold notices. Appendix C provides model disclosures and clauses.
A useful review asks whether the customer received:
The model forms are compliance aids, not a substitute for checking the operative regulation and the facts of the transaction.
Subpart C addresses bank responsibilities for the collection and return of checks, including electronic checks and electronic returned checks, notices of nonpayment, warranties, indemnities, endorsements, and presentment. These provisions primarily govern the banks and other parties handling the item rather than creating a single customer-facing clearing time.
Subpart D implements the Check 21 Act. It sets requirements for substitute checks, related warranties and indemnities, consumer awareness, and expedited recredit in qualifying cases.
For bank operations, the same analysis should be traceable through policy configuration, transaction coding, notice generation, exception approval, customer communication, and reconciliation.
This article provides general financial education and is not legal or compliance advice. Regulation CC analysis depends on the current rule, official commentary, account, bank, deposit method, item, notice, state law, and specific facts.