Meaning of Legal Bank Account

(ii) Reasonable Notice. Notice is appropriate if the Bank generally describes the identification requirements of this section and provides the notice in a manner reasonably designed to ensure that a customer has access to the notice before opening an account or is otherwise notified. For example, depending on how the account is opened, a bank may post a notice in the lobby or on its website, include the notice in its account applications, or use another form of written or oral notice. Federal Reserve regulation also plays a role in banking regulation, particularly with respect to the rules governing checks. Most controls go through the Federal Reserve System; If so, Federal Reserve Regulation J takes effect. In addition, the CC Regulation comprehensively regulates the availability of funds in a depositor`s account and the process required to process cheques that have not been cashed due to non-payment. In addition, the Accelerated Funds Availability Act, drafted in subsection B of the Federal Reserve Regulations CC, limits the time a custodian can delay before making the amount of a deposited check available for withdrawal. In most jurisdictions, the deposit of funds with a bank is not a deposit – that is, the funds actually deposited by a person in a bank are no longer the property of the depositor and become the property of the bank. The depositor acquires a claim on the bank for the amount deposited, but not for the money actually transferred to the bank. From an accounting point of view, the bank creates (“opens”) an account in the name of the depositor or in the name of the depositor, in which the amount it receives is recorded as a transaction. The deposit account is a liability of the bank and an asset of the depositor (the account holder).

9. `item` means an instrument, promise or instruction for payment of money processed by a bank for collection or payment. It does not include a payment order within the meaning of Article 4A or proof of credit or debit card; 1. `account` means any deposit or credit account with a bank, including a current account, passbook, passbook, share exchange book or similar account, except an account evidenced by a certificate of deposit; (5) (i) Notice to Customer. The CIP must include procedures to adequately inform bank customers that the bank is requesting information to verify their identity. The FDIC regularly publishes updates on news and activities. Stay up-to-date on FDIC announcements, read speeches and testimonials on the latest banking issues, learn about policy changes for banks, and follow upcoming conferences and events. 3. Approved by the Board of Directors or, if the Bank does not have a Board of Directors, by an equivalent management body within the Bank.

The Bank shall provide a copy of its anti-money laundering program to the Financial Crimes Enforcement Network or its designee upon request. Federal government regulations concerning banks and banks are codified in Title 12 of the Code of Federal Regulations. (a) Requirements for anti-money-laundering programmes with respect to banking regulation by a functional federal regulatory authority, including banks, savings banks and credit unions. A bank regulated by a functioning federal regulator is deemed to meet the requirements of 31 U.S.C. 5318(h)(1) if it implements and maintains an anti-money laundering program that: The banking crisis of the 1930s led to the development of federal deposit insurance administered by the Federal Deposit Insurance Corporation (FDIC). The FDIC guarantees a standard insurance amount of $250,000 per depositor and insured bank. The FDIC is funded by premiums paid by member institutions. Some accounts are categorized by function rather than by type of balance they hold, such as savings accounts that are regularly credited. On the other hand, a bank can lend some or all of the money it has on deposits to third parties.

These accounts, commonly referred to as loan or credit accounts, are subject to similar but reverse principles of a deposit account. In accounting terms, a credit account is an asset of the bank and a liability of the borrower. Loan accounts may be unsecured or guaranteed by the borrower, and they may be secured by a third party, with or without collateral. (ii) independent compliance audits by bank employees or an external party; (c) Credit Card Accounts. In the case of a Customer opening a credit card account, a Bank may obtain a Customer`s identification information required under paragraph (a)(2)(i)(A) by obtaining it from a third-party source prior to extending credit to the Customer. (i) a financial institution regulated by a functioning federal regulatory authority or a bank regulated by a state banking regulator; (D) If the Bank is required to file a suspicious activity report in accordance with applicable laws and regulations. (10) `midnight period` means, for a bank, midnight on the banking business day following that on which it receives the position or notification concerned or from which the period for action begins to run, whichever is later; Banks are subject to the program requirements set out and referenced in this subsection. Banks should also refer to Subdivision B of Part 1010 of this Chapter for the program requirements contained in this subsection that apply to banks. (B) The conditions under which a Customer may use an Account while the Bank attempts to verify the Customer`s identity; (a) Verification of documents. For a bank that relies on documents, the CIP must include procedures that specify the documents that the bank will use. Such documents may include: (iii) A person who has an existing account with the Bank, provided that the Bank has reason to believe that it knows the true identity of the person.

(4) `clearing house` means an association of banks or other payers that periodically settles for items; (a) Client Identification Program: Minimum Requirements – (1) In general. A bank that complies with the 31 U.S.C. 5318(h), 12 U.S.C. 1818(s), or 12 U.S.C. 1786(q)(1) must have an anti-money laundering compliance program, must implement a written client identification program (PIC) appropriate to the size and nature of the Bank`s business, and includes at least each of the requirements of paragraphs (a)(1) to (5) of this section. The CIP must be part of the anti-money laundering compliance program. Until the early 1980s, the federal government regulated and controlled interest rates on bank accounts. Federal law has set a ceiling on interest rates on savings accounts and generally prohibited interest payments on current and other demand deposit accounts. Federal law also prohibited banks from offering money market accounts. Subsequently, the federal government lifted these restrictions on banks. The Deposit-Taking Institutions Deregulation Act 1980 (DIDRA) abolished interest rate controls on savings accounts. In addition, DIDRA (by approving NOW and Super NOW checking accounts) and the Garn-St Germain Depository Institutions Act of 1982 lifted restrictions on checking and money market accounts nationwide.

State legislation, supplemented by certain federal laws, regulates the operation of current accounts. Article 4 of the Uniform Commercial Code (CDU), which has been adopted at least partially in all states, “defines the rights between the parties with respect to bank deposits and debt collection.” The article regulates the actions of the first bank that accepts the cheque (custodian bank) and other banks that process the cheque but are not responsible for its final payment (collecting banks); the actions of the bank responsible for paying the cheque (payer`s bank); the relationship between a paying bank and its customers; and documentary drafts (cheques or other types of drafts that will only be considered if certain documents are first presented to the payer of the draft).