Deposit Compliance and Regulatory Examinations Flashcards

Regulation CC (Expedited Funds Availability Act) requires banks to make funds from local check deposits available no later than:

Answer: Second business day

Regulation CC generally requires that funds from local checks be available no later than the second business day after deposit.

Under Regulation DD (Truth in Savings), annual percentage yield (APY) must reflect:

Answer: The effect of compounding over a full year

APY is a standardized rate that includes the effect of compounding over a 365-day year, allowing consumers to compare savings accounts.

Under the National Flood Insurance Program (NFIP), lenders must require flood insurance for loans secured by properties located in:

Answer: A Special Flood Hazard Area (SFHA) as designated by FEMA

Federal law requires lenders to mandate flood insurance for improved real estate or mobile homes located in a FEMA-designated Special Flood Hazard Area.

Regulation E requires that periodic statements for accounts with electronic fund transfer capability be provided:

Answer: Monthly if there is an electronic transfer during the cycle

Regulation E requires monthly periodic statements for accounts that had an EFT during the statement period.

Which of the following is an 'exception hold' permitted under Regulation CC?

Answer: A hold placed on a deposit because the depositor has a repeatedly overdrawn account

Regulation CC allows exception holds for accounts with repeated overdrafts, among other exceptions, extending the standard availability schedule.

Under the USA PATRIOT Act Section 326, a Customer Identification Program (CIP) must, at minimum, collect which information for individual accounts?

Answer: Name, date of birth, address, and identification number

The CIP minimum requirements for individuals are name, date of birth, address, and an identification number (e.g., SSN or passport number).