Rules and Regulations - Local Government Federal Credit Union

F If there is an unforeseen emergency(such as a breakdown of communications channelsor a breakdown of computer equipment)Holds on Other Funds—Check CashingIf we cash a check for you that is drawn on anotherfinancial institution, the Credit Union may temporarilywithhold access to the same dollar amount in fundsalready on deposit with us. You can access these fundson the same schedule as if the original check had beendeposited, rather than cashed. For example, if youpresent a $100 check to be cashed, you will receive therequested funds, but $100 in funds already on depositwith the Credit Union will not be available until as manyas seven business days following the date the checkwas cashed. In this circumstance, a notice will be sent toyou by the next business day, advising you of the hold.Holds on Funds—Other AccountsIf we accept for deposit a check drawn on anotherfinancial institution, we may make those funds availableto you for immediate withdrawal, but delay yourability to withdraw a corresponding amount of fundsalready on deposit with us. The hold on these fundswill be released once the funds from the depositedcheck are available, as per Regulation CC. If this occurs,a notice will be sent advising you of this hold by thenext business day following our receipt of the deposit.Deposits at Automated Teller Machines (ATMs)Funds resulting from any deposit (cash or checks)or transfer made at a CashPoints ® ATM are available onthe same business day of deposit or transfer unlesswe mail you a notice advising you of a delay in fundsavailability. If a member transfers funds betweenLGFCU accounts at any other (non-CashPoints ® ) ATM,the funds may not be available until the fifth businessday following the date of transfer.Substitute Check Policy Disclosureand Your RightsThe Check Clearing for the 21st Century Act (Check 21)became effective on October 28, 2004. The regulation’sgoal is “to improve the overall efficiency of the nation’spayment system.” To expedite the check collectionprocess and reduce the costs associated with checkprocessing, Check 21 allows for the creation of anegotiable item called a “substitute check.”What is a substitute check?A substitute check is a special electronic image ofthe original paper check. Its benefit is that it can beexchanged quicker and more efficiently than physicallytransporting a check between financial institutions.Substitute checks are similar in size to the originalpaper check, but with slightly reduced images of thefront and back of the check. The front of the copystates: “This is a legal copy of your check. You can useit the same way you would use the original check.” Youmay use the substitute check as proof of payment justlike the original check.Some or all of the checks that you receive back fromthe Credit Union may be substitute checks or copiesof substitute checks. This notice describes the rightsyou have when you receive substitute checks fromus. The rights in this notice do not apply to originalchecks or to electronic debits to your Credit Unionaccount. However, you have rights under other lawswith respect to those transactions.What are my rights regarding substitute checks?In some cases, federal law provides special proceduresthat allow you to request a refund for losses yousuffer with regard to a substitute check posted to yourCredit Union account (for example, you believe theamount withdrawn was incorrect, or that the amountof the same check was withdrawn more than once).The losses you may attempt to recover under thisprocedure include the amount that was withdrawnfrom your account and any associated fees that werecharged as a result of the withdrawal (for example,insufficient funds fees).The amount of your refund under these proceduresis limited to the amount of your loss or the amountof the substitute check, whichever is less. You are alsoentitled to dividends on the amount of your refund ifyour account is a dividend-bearing account. If your lossexceeds the amount of the substitute check, you maybe able to recover additional amounts under the law.Should an error be found, you may receive up to $2,500of your refund (plus dividends, if your account earnsdividends) before the end of the tenth business day afterwe receive your claim, and the remainder of your refund(plus dividends, if your account earns dividends) no laterthan 45 calendar days after your claim is received.4 5