This section of the NBA Compliance Handbook addresses those common issues regarding the bank-depositor relationship. When a financial institution offers deposit products, a combination of several federal and state laws or regulations often come into play. For example, state laws govern account ownership rights that may affect federal deposit insurance coverage. State law may often form the basis for account documentation issues, the handling of trust accounts and the treatment of minors or persons protected by guardians or custodians. In addition, state law addresses Uniform Commercial Code matters (e.g., negotiable instruments, bank deposits and bank collections, funds transfers), state warrants, financial institution data match issues and garnishment questions. State statutes also provide for specialized treatment of certain accounts, such as lawyer’s trust accounts and IOLTA, Nursing Home Accounts and Real Estate Broker Trust Accounts. Account styling and account closing issues may be governed by the state’s common law. Federal laws or regulations will generally govern reserve requirements, advertising, U.S. Treasury Checks, interest on deposits, NOW account eligibility, IRAs, SEPs, MSAs, Education IRAs, EFT transactions, EFT ’99 issues, ETA and ACH rules as well as account transaction limitations. Federal regulations implement the deposit account provisions enforced by the IRS as well as the Expedited Funds Availability Act and the Truth-In-Savings Act. Both federal and state laws may address the issue of the ability of a bank to pledge bank assets to secure deposits or ATM access fee disclosures.
Cross References in the NBA Compliance Handbook:
Volume I
*Record Retention
* Privacy
Financial Privacy: Government and Private Requests for Bank Customer Records
* Security
Bank Secrecy Act & Currency Transaction Reports
Suspicious Activity Reports
Volume III
*Secured Transactions
Federal Tax Liens
Agricultural Production Input Lien
Statutory Liens
*Lending
Bank Set-Off
Internal Revenue Service: Bank Reporting Requirements