Withdrawal of Proposal to Reduce Maximum Hold on Nonlocal Checks
To All Depository Institutions in the Second Federal Reserve District:
Our Circular No. 11132, dated January 26, 1999, contained a request by the Board of Governors of the Federal Reserve System for comments on the potential benefits and drawbacks of a modification to its Regulation CC, Availability of Funds and Collection of Checks, that would shorten the maximum hold for many nonlocal checks.
On the basis of an analysis of issues raised by the comments, the Board has concluded that return times do not warrant shortening the permissible holds on nonlocal checks. Additionally, the costs and potential risks of shortening holds on all or some nonlocal checks would outweigh the likely benefits. Accordingly, the Board has decided not to propose specific changes to Regulation CC at this time that would reduce the maximum hold on nonlocal checks.
The Board's official notice in this matter, as published in the Federal Register of July 13, 1999, is available as a 
file (pdf - 54kb).
