HR 9331 — STOP Payments Fraud Act of 2026

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 EXPEDITED FUNDS AVAILABILITY ACT

TITLE VI--EXPEDITED FUNDS AVAILABILITY

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SEC. 603. EXPEDITED FUNDS AVAILABILITY SCHEDULES.

 (a) Next Business Day Availability For Certain Deposits.--
 (1) Cash deposits; wire transfers.--Except as 
 provided in subsection (e) and in section 604, in any 
 case in which--
 (A) any cash is deposited in an account at a 
 receiving depository institution staffed by 
 individuals employed by such institution, or
 (B) funds are received by a depository 
 institution by wire transfer for deposit in an 
 account at such institution,
 such cash or funds shall be available for withdrawal 
 not later than the business day after the business day 
 on which such cash is deposited or such funds are 
 received for deposit.
 (2) Government checks; certain other checks.--Funds 
 deposited in an account at a depository institution by 
 check shall be available for withdrawal not later than 
 the business day after the business day on which such 
 funds are deposited in the case of--
 (A) a check which--
 (i) is drawn on the Treasury of the 
 United States; and
 (ii) is endorsed only by the person 
 to whom it was issued.
 (B) a check which--
 (i) is drawn by a State;
 (ii) is deposited in a receiving 
 depository institution which is located 
 in such State and is staffed by 
 individuals employed by such 
 institution;
 (iii) is deposited with a special 
 deposit slip which indicates it is a 
 check drawn by a State; and
 (iv) is endorsed only by the person 
 to whom it was issued;
 (C) a check which--
 (i) is drawn by a unit of general 
 local government;
 (ii) is deposited in a receiving 
 depository institution which is located 
 in the same State as such unit of 
 general local government and is staffed 
 by individuals employed by such 
 institution;
 (iii) is deposited with a special 
 deposit slip which indicates it is a 
 check drawn by a unit of general local 
 government; and
 (iv) is endorsed only by the person 
 to whom it was issued;
 (D) the first $200 deposited by check or 
 checks on any one business day;
 (E) a check deposited in a branch of a 
 depository institution and drawn on the same or 
 another branch of the same depository 
 institution if both such branches are located 
 in the same State or the same check processing 
 region;
 (F) a cashier's check, certified check, 
 teller's check, or depository check which--
 (i) is deposited in a receiving 
 depository institution which is staffed 
 by individuals employed by such 
 institution;
 (ii) is deposited with a special 
 deposit slip which indicates it is a 
 cashier's check, certified check, 
 teller's check, or depository check, as 
 the case may be; and
 (iii) is endorsed only by the person 
 to whom it was issued.
 (b) Permanent Schedule.--
 (1) Availability of funds deposited by local 
 checks.--Subject to paragraph (3) of this subsection, 
 subsections (a)(2), (d), and (e) of this section, and 
 section 604, not more than 1 business day shall 
 intervene between the business day on which funds are 
 deposited in an account at a depository institution by 
 a check drawn on a local originating depository 
 institution and the business day on which the funds 
 involved are available for withdrawal.
 (2) Availability of funds deposited by nonlocal 
 checks.--Subject to paragraph (3) of this subsection, 
 subsections (a)(2), (d), and (e) of this section, and 
 section 604, not more than 4 business days shall 
 intervene between the business day on which funds are 
 deposited in an account at a depository institution by 
 a check drawn on a nonlocal originating depository 
 institution and the business day on which such funds 
 are available for withdrawal.
 (3) Time period adjustments for cash withdrawal of 
 certain checks.--
 (A) In general.--Except as provided in 
 subparagraph (B), funds deposited in an account 
 in a depository institution by check (other 
 than a check described in subsection (a)(2)) 
 shall be available for cash withdrawal not 
 later than the business day after the business 
 day on which such funds otherwise are available 
 under paragraph (1) or (2).
 (B) 5 p.m. cash availability.--Not more than 
 $400 (or the maximum amount allowable in the 
 case of a withdrawal from an automated teller 
 machine but not more than $400) of funds 
 deposited by one or more checks to which this 
 paragraph applies shall be available for cash 
 withdrawal not later than 5 o'clock post 
 meridian of the business day on which such 
 funds are available under paragraph (1) or (2). 
 If funds deposited by checks described in both 
 paragraph (1) and paragraph (2) become 
 available for cash withdrawal under this 
 paragraph on the same business day, the 
 limitation contained in this subparagraph shall 
 apply to the aggregate amount of such funds.
 (C) $200 availability.--Any amount available 
 for withdrawal under this paragraph shall be in 
 addition to the amount available under 
 subsection (a)(2)(D).
 (4) Applicability.--This subsection shall apply with 
 respect to funds deposited by check in an account at a 
 depository institution on or after September 1, 1990, 
 except that the Board may, by regulation, make this 
 subsection or any part of this subsection applicable 
 earlier than September 1, 1990.
 (c) Temporary Schedule.--
 (1) Availability of local checks.--
 (A) In general.--Subject to subparagraph (B) 
 of this paragraph, subsections (a)(2), (d), and 
 (e) of this section, and section 604, not more 
 than 2 business days shall intervene between 
 the business day on which funds are deposited 
 in an account at a depository institution by a 
 check drawn on a local originating depository 
 institution and the business day on which such 
 funds are available for withdrawal.
 (B) Time period adjustment for cash 
 withdrawal of certain checks.--
 (i) In general.--Except as provided 
 in clause (ii), funds deposited in an 
 account in a depository institution by 
 check drawn on a local depository 
 institution that is not a participant 
 in the same check clearinghouse 
 association as the receiving depository 
 institution (other than a check 
 described in subsection (a)(2)) shall 
 be available for cash withdrawal not 
 later than the business day after the 
 business day on which such funds 
 otherwise are available under 
 subparagraph (A).
 (ii) 5 p.m. cash availability.--Not 
 more than $400 (or the maximum amount 
 allowable in the case of a withdrawal 
 from an automated teller machine but 
 not more than $400) of funds deposited 
 by one or more checks to which this 
 subparagraph applies shall be available 
 for cash withdrawal not later than 5 
 o'clock post meridian of the business 
 day on which such funds are available 
 under subparagraph (A).
 (iii) $200 availability.--Any amount 
 available for withdrawal under this 
 subparagraph shall be in addition to the amount 
 available under subsection (a)(2)(D).
 (2) Availability of nonlocal checks.--Subject to 
 subsections (a)(2), (d), and (e) of this section and 
 section 604, not more than 6 business days shall 
 intervene between the business day on which funds are 
 deposited in an account at a depository institution by 
 a check drawn on a nonlocal originating depository 
 institution and the business day on which such funds 
 are available for withdrawal.
 (3) Applicability.--This subsection shall apply with 
 respect to funds deposited by check in an account at a 
 depository institution after August 31, 1988, and 
 before September 1, 1990, except as may be otherwise 
 provided under subsection (b)(4).
 (d) Time Period Adjustments.--
 (1) Reduction generally.--Notwithstanding any other 
 provision of law, the Board, jointly with the Director 
 of the Bureau of Consumer Financial Protection, [shall] 
 may , by regulation, reduce the time periods 
 established under subsections (b), (c), and (e) [to as 
 short a time as possible and equal] to the period of 
 time achievable under the improved check clearing 
 system for a receiving depository institution to 
 reasonably expect to learn of the nonpayment of most 
 items for each category of checks.
 (2) Extension for certain deposits in noncontiguous 
 states or territories.--Notwithstanding any other 
 provision of law, any time period established under 
 subsection (b), (c), or (e) [shall] may be extended by 
 1 business day in the case of any deposit which is 
 both--
 (A) deposited in an account at a depository 
 institution which is located in Alaska, Hawaii, 
 Puerto Rico, American Samoa, the Commonwealth 
 of the Northern Mariana Islands, Guam, or the 
 Virgin Islands; and
 (B) deposited by a check drawn on an 
 originating depository institution which is not 
 located in the same State, commonwealth, or 
 territory as the receiving depository 
 institution.
 (e) Deposits at an ATM.--
 (1) Nonproprietary atm.--
 (A) In general.--Not more than 4 business 
 days shall intervene between the business day a 
 deposit described in subparagraph (B) is made 
 at a nonproprietary automated teller machine 
 (for deposit in an account at a depository 
 institution) and the business day on which 
 funds from such deposit are available for 
 withdrawal.
 (B) Deposits described in this paragraph.--A 
 deposit is described in this subparagraph if it 
 is--
 (i) a cash deposit;
 (ii) a deposit made by a check 
 described in subsection (a)(2);
 (iii) a deposit made by a check drawn 
 on a local originating depository 
 institution (other than a check 
 described in subsection (a)(2)); or
 (iv) a deposit made by a check drawn 
 on a nonlocal originating depository 
 institution (other than a check 
 described in subsection (a)(2)).
 (2) Proprietary atm--temporary and permanent 
 schedules.--The provisions of subsections (a), (b), and 
 (c) shall apply with respect to any funds deposited at 
 a proprietary auto- mated teller machine for deposit in 
 an account at a depository institution.
 (3) Study and report on atm's.--The Board shall, 
 either directly or through the Consumer Advisory 
 Council, establish and maintain a dialogue with 
 depository institutions and their suppliers on the 
 computer software and hardware available for use by 
 automated teller machines, and shall, not later than 
 September 1 of each of the first 3 calendar years 
 beginning after the date of the enactment of this 
 title, report to the Congress regarding such software 
 and hardware and regarding the potential for improving 
 the processing of automated teller machine deposits.
 (f) Check Return; Notice of Nonpayment.--No provision of this 
section shall be construed as requiring that, with respect to 
all checks deposited in a receiving depository institution--
 (1) such checks be physically returned to such 
 depository institution; or
 (2) any notice of nonpayment of any such check be 
 given to such depository institution within the times 
 set forth in subsection (a), (b), (c), or (e) or in the 
 regulations issued under any such subsection.
 (g) Parity of Availability for Certain Checks During Times of 
Material Fraud Losses.--
 (1) Determination.--
 (A) Before the date that is six months from 
 the date of enactment of the Strengthening 
 Transaction Oversight and Preventing Payments 
 Fraud Act of 2026, the Board, jointly with the 
 Director of the Bureau of Consumer Financial 
 Protection, shall determine, with respect to 
 each class of checks described in paragraph 
 (5), whether the provisions of paragraph (3) 
 should apply to that class of checks.
 (B) After the date that is six months from 
 the date of enactment of the Strengthening 
 Transaction Oversight and Preventing Payments 
 Fraud Act of 2026, the Board, jointly with the 
 Director of the Bureau of Consumer Financial 
 Protection, may determine, with respect to a 
 class of checks described in paragraph (5), 
 that the provisions of paragraph (3) should 
 apply to that class of checks.
 (2) When making a determination under paragraph (1), 
 the Board and the Director of the Bureau of Consumer 
 Financial Protection shall consider--
 (A) whether the Treasury of the United States 
 or depository institutions, as applicable, are 
 experiencing material losses from fraud related 
 to that class of checks; and
 (B) the impact that a determination under 
 paragraph (1) would have on persons sending or 
 receiving checks of such class of checks.
 (3) If the Board, jointly with the Director of the 
 Bureau of Consumer Financial Protection, makes an 
 affirmative determination with respect to a class of 
 checks under paragraph (1), then--
 (A) notwithstanding subsection (a), funds 
 deposited in an account at a depository 
 institution by checks of such class shall be 
 available to the same extent as funds shall be 
 available when deposited by check drawn on a 
 local originating depository institution under 
 subsection (b)(1); and
 (B) the Board, jointly with the Director of 
 the Bureau of Consumer Financial Protection, no 
 later than 60 days after the date of the 
 determination, shall submit a report to the 
 Committee on Banking, Housing, and Urban 
 Affairs of the Senate and the Committee on 
 Financial Services of the House of 
 Representatives explaining the basis for such 
 affirmative determination.
 (4) In respect of each determination under paragraph 
 (1), the provisions of paragraph (3) are effective for 
 a time to be determined by the Board, jointly with the 
 Director of the Bureau of Consumer Financial 
 Protection. Such period may be no longer than one year.
 (5) The classes of checks described in this paragraph 
 are the following:
 (A) The class of checks described in 
 subsection (a)(2)(A).
 (B) The class of checks described in 
 subsection (a)(2)(F).

SEC. 604. SAFEGUARD EXCEPTIONS.

 (a) New Accounts.--Notwithstanding section 603, in the case 
of any account established at a depository institution by a new 
depositor, the following provisions shall apply with respect to 
any deposit in such account during the 30-day period (or such 
shorter period as the Board, jointly with the Director of the 
Bureau of Consumer Financial Protection, may establish) 
beginning on the date such account is established--
 (1) Next business day availability of cash and 
 certain items.--Except as provided in paragraph (3), in 
 the case of--
 (A) any cash deposited in such account;
 (B) any funds received by such depository 
 institution by wire transfer for deposit in 
 such account;
 (C) any funds deposited in such account by 
 cashier's check, certified check, teller's 
 check, depository check, or traveler's check; 
 and
 (D) any funds deposited by a government check 
 which is described in subparagraph (A), (B), or 
 (C) of section 603(a)(2),
 such cash or funds shall be available for withdrawal on 
 the business day after the business day on which such 
 cash or funds are deposited or, in the case of a wire 
 transfer, on the business day after the business day on 
 which such funds are received for deposit.
 (2) Availability of other items.--In the case of any 
 funds deposited in such account by a check (other than 
 a check described in subparagraph (C) or (D) of 
 paragraph (1)), the availability for withdrawal of such 
 funds shall not be subject to the provisions of section 
 603(b), 603(c), or paragraphs (1) of section 603(e).
 (3) Limitation relating to certain checks in excess 
 of $5,000.--In the case of funds deposited in such 
 account during such period by checks described in 
 subparagraph (C) or (D) of paragraph (1) the aggregate 
 amount of which exceeds $5,000--
 (A) paragraph (1) shall apply only with 
 respect to the first $5,000 of such aggregate 
 amount; and
 (B) not more than 8 business days shall 
 intervene between the business day on which any 
 such funds are deposited and the business day 
 on which such excess amount shall be available 
 for withdrawal.
 (b) Large or Redeposited Checks; Repeated Overdrafts.--The 
Board, jointly with the Director of the Bureau of Consumer 
Financial Protection, may, by regulation, establish reasonable 
exceptions to any time limitation established under subsection 
(a)(2), (b), (c), or (e) of section 603 for--
 (1) the amount of deposits by one or more checks that 
 exceeds the amount of $5,000 in any one day;
 (2) checks that have been returned unpaid and 
 redeposited; and
 (3) deposit accounts which have been overdrawn 
 repeatedly.
 (c) Reasonable Cause Exception.--
 (1) [In general] Collectability.--In accordance with 
 regulations which the Board, jointly with the Director 
 of the Bureau of Consumer Financial Protection, shall 
 prescribe, subsections (a)(2), (b), (c), and (e) of 
 section 603 and paragraphs (1) and (3) of subsection 
 (a) of this section shall not apply with respect to any 
 check deposited in an account at a depository 
 institution if the receiving depository institution has 
 reasonable cause to believe that the check is 
 uncollectible from the originating depository 
 institution. For purposes of the preceding sentence, 
 reasonable cause to believe requires the existence of 
 facts which would cause a well-grounded belief in the 
 mind of a reasonable person. Such reasons shall be 
 included in the notice required under subsection (f).
 (2) Fraud.--
 (A) Regulations.--In accordance with 
 regulations which the Board, jointly with the 
 Director of the Bureau of Consumer Financial 
 Protection, shall prescribe, subsections 
 (a)(2), (b), (c), and (e) of section 603 and 
 paragraphs (1) and (3) of subsection (a) of 
 this section shall not apply with respect to 
 any check deposited in an account at a 
 depository institution if the receiving 
 depository institution has reasonable suspicion 
 to believe that the check is false, 
 unauthorized, or otherwise involves fraud. For 
 purposes of the preceding sentence, reasonable 
 suspicion to believe that a check is false, 
 unauthorized, or otherwise involves fraud 
 requires the existence of indicators that would 
 lead a reasonable person to suspect that the 
 check involves fraud. Such reasons shall be 
 included in the notice required under 
 subsection (f).
 (B) Delayed availability.--The regulations 
 issued pursuant to this paragraph shall 
 prescribe an initial hold (time period of 
 delayed funds availability), not to exceed 10 
 days, an extended hold (time period of delayed 
 funds availability), not to exceed 45 days, to 
 allow the receiving depository institution to 
 determine if it has reasonable suspicion under 
 subparagraph (A). The regulations may prescribe 
 different initial and extended hold timelines 
 based on the dollar amount of the funds in 
 question and other relevant criteria. The 
 regulations may also include conditions a 
 receiving depository institution must satisfy 
 with respect to any hold or delay of funds 
 availability pursuant to this paragraph.
 (C) Additional notice.--The regulations 
 issued pursuant to this paragraph may provide 
 for additional notifications to a payor, a 
 receiving depository institution, and a 
 depositor beyond what is otherwise required 
 pursuant to subsection (f) to keep relevant 
 persons informed of the status of a hold.
 (D) Rule of application.--A receiving 
 depository institution that has reasonable 
 suspicion to believe that a check is false, 
 unauthorized, or otherwise involves fraud, as 
 described in subparagraph (A), may also have 
 reasonable cause to believe that such check is 
 uncollectible from the originating depository 
 institution, as described in paragraph (1).
 [(2)] (3) Basis for determination.--No determination 
 under this subsection may be based on any class of 
 checks or persons.
 [(3)] (4) Overdraft fees.--If the receiving 
 depository institution determines that a check 
 deposited in an account is a check described in 
 [paragraph (1)] paragraph (1) or (2) , the receiving 
 depository institution shall not assess any fee for any 
 subsequent overdraft with respect to such account, if--
 (A) the depositor was not provided with the 
 written notice required under subsection (f) 
 (with respect to such determination) at the 
 time the deposit was made;
 (B) the overdraft would not have occurred but 
 for the fact that the funds so deposited are 
 not available; and
 (C) the amount of the check is collected from 
 the originating depository institution.
 [(4)] (5) Compliance.--Each agency referred to in 
 section 610(a) shall monitor compliance with the 
 requirements of this subsection in each regular 
 examination of a depository institution and shall 
 describe in each report to the Congress the extent to 
 which this subsection is being complied with. For the 
 purpose of this paragraph, each depository institution 
 shall retain a record of each notice provided under 
 subsection (f) as a result of the application of this 
 subsection.
 (d) Emergency Conditions.--Subject to such regulations as the 
Board, jointly with the Director of the Bureau of Consumer 
Financial Protection, may prescribe, subsections (a)(2), (b), 
(c), and (e) of section 603 shall not apply to funds deposited 
by check in any receiving depository institution in the case 
of--
 (1) any interruption of communication facilities;
 (2) suspension of payments by another depository 
 institution;
 (3) any war; or
 (4) any emergency condition beyond the control of the 
 receiving depository institution,
if the receiving depository institution exercises such 
diligence as the circumstances require.
 (e) Prevention of Fraud Losses.--
 (1) In general.--The Board, jointly with the Director 
 of the Bureau of Consumer Financial Protection, may, by 
 regulation or order, suspend the applicability of this 
 title, or any portion thereof, to any classification of 
 checks if the Board, jointly with the Director of the 
 Bureau of Consumer Financial Protection, determines 
 that--
 (A) depository institutions are experiencing 
 an unacceptable level of losses due to check-
 related fraud, and
 (B) suspension of this title, or such portion 
 of this title, with regard to the 
 classification of checks involved in such fraud 
 is necessary to diminish the volume of such 
 fraud.
 (2) Sunset provision.--No regulation prescribed or 
 order issued under paragraph (1) shall remain in effect 
 for more than 45 days (excluding Saturdays, Sundays, 
 legal holidays, or any day either House of Congress is 
 not in session).
 (3) Report to congress.--
 (A) Notice of each suspension.--Within 10 
 days of prescribing any regulation or issuing 
 any order under paragraph (1), the Board, 
 jointly with the Director of the Bureau of 
 Consumer Financial Protection, shall transmit a 
 report of such action to the Committee on 
 Banking, Finance and Urban Affairs of the House 
 of Representatives and the Committee on 
 Banking, Housing, and Urban Affairs of the 
 Senate.
 (B) Contents of report.--Each report under 
 subparagraph (A) shall contain--
 (i) the specific reason for 
 prescribing the regulation or issuing 
 the order;
 (ii) evidence considered by the 
 Board, jointly with the Director of the 
 Bureau of Consumer Financial 
 Protection, in making the determination 
 under paragraph (1) with respect to 
 such regulation or order; and
 (iii) specific examples of the check-
 related fraud giving rise to such 
 regulation or order.
 (f) Notice of Exception; Availability Within Reasonable 
Time.--
 (1) In general.--If any exception contained in this 
 section (other than subsection (a)) applies with 
 respect to funds deposited in an account at a 
 depository institution--
 (A) the depository institution shall provide 
 notice in the manner provided in paragraph (2) 
 of--
 (i) the time period within which the 
 funds shall be made available for 
 withdrawal; and
 (ii) the reason the exception was 
 invoked; and
 (B) except where other time periods are 
 specifically provided in this title, the 
 availability of the funds deposited shall be 
 governed by the policy of the receiving 
 depository institution, but shall not exceed a 
 reasonable period of time as determined by the 
 Board, jointly with the Director of the Bureau 
 of Consumer Financial Protection.
 (2) Time for notice.--The notice required under 
 paragraph (1)(A) with respect to a deposit to which an 
 exception contained in this section applies shall be 
 made by the time provided in the following 
 subparagraphs:
 (A) In the case of a deposit made in person 
 by the depositor at the receiving depository 
 institution, the depository institution shall 
 immediately provide such notice in writing to 
 the depositor.
 (B) In the case of any other deposit (other 
 than a deposit described in subparagraph (C)), 
 the receiving depository institution shall mail 
 the notice to the depositor not later than the 
 close of the next business day following the 
 business day on which the deposit is received.
 (C) In the case of a deposit to which 
 [subsection (d) or (e)] subsection (c)(2), (d), 
 (e) or (h) applies, notice shall be provided by 
 the depository institution in accordance with 
 regulations of the Board, jointly with the 
 Director of the Bureau of Consumer Financial 
 Protection.
 (D) In the case of a deposit to which 
 subsection (b)(1) or (b)(2) applies, the 
 depository institution may, for nonconsumer 
 accounts and other classes of accounts, as 
 defined by the Board, that generally have a 
 large number of such deposits, provide notice 
 at or before the time it first determines that 
 the subsection applies.
 (E) In the case of a deposit to which 
 subsection (b)(3) applies, the depository 
 institution may, subject to regulations of the 
 Board, provide notice at the beginning of each 
 time period it determines that the subsection 
 applies. In addition to the requirements 
 contained in paragraph (1)(A), the notice shall 
 specify the time period for which the exception 
 will apply.
 (3) Subsequent determinations.--If the facts upon 
 which the determination of the applicability of an 
 exception contained in subsection (b) or (c) to any 
 deposit only become known to the receiving depository 
 institution after the time notice is required under 
 paragraph (2) with respect to such deposit, the 
 depository institution shall mail such notice to the 
 depositor as soon as practicable, but not later than 
 the first business day following the day such facts 
 become known to the depository institution.
 (g) Application of Certain Exceptions in Circumstances With 
Greater Fraud Risk.--With respect to an account established at 
a depository institution, and without regard to whether the 
account was established by a new depositor, upon the occurrence 
of circumstances identified by rule by the Board, jointly with 
the Director of the Bureau of Consumer Financial Protection, as 
associated with greater fraud risk, the provisions of 
paragraphs (1) through (3) of subsection (a) shall apply with 
respect to any deposit in such account for a period of time 
determined by rule by the Board, jointly with the Director of 
the Bureau of Consumer Financial Protection, but not to exceed 
60 days for each such occurrence.
 (h) Reasonable Suspicion Exception for Wire Transfers.--
 (1) In general.--In accordance with regulations which 
 the Board, jointly with the Director of the Bureau of 
 Consumer Financial Protection, shall prescribe, section 
 603(a)(1)(B) and subsection (a)(1)(B) of this section 
 shall not apply with respect to funds received by a 
 depository institution by wire transfer if the 
 receiving depository institution has reasonable 
 suspicion to believe that the wire transfer is false, 
 unauthorized, or otherwise involves fraud. For purposes 
 of the preceding sentence, reasonable suspicion to 
 believe that a wire transfer is false, unauthorized, or 
 otherwise involves fraud requires the existence of 
 indicators that would lead a reasonable person to 
 suspect that the wire transfer involves fraud. Such 
 reasons shall be included in the notice required under 
 subsection (f).
 (2) Delayed availability.--The regulations issued 
 pursuant to this subsection shall prescribe an initial 
 hold (time period of delayed funds availability), not 
 to exceed 10 days, an extended hold (time period of 
 delayed funds availability), not to exceed 45 days, to 
 allow the receiving depository institution to determine 
 if it has reasonable suspicion under paragraph (1). The 
 regulations may prescribe different initial and 
 extended hold timelines based on the dollar amount of 
 the funds in question and other relevant criteria. The 
 regulations may also include conditions a receiving 
 depository institution must satisfy with respect to any 
 hold or delay of funds availability pursuant to this 
 subsection.
 (3) Additional notice.--The regulations issued 
 pursuant to this subsection may provide for additional 
 notifications to a payor, a receiving depository 
 institution, and a depositor beyond what is otherwise 
 required pursuant to subsection (f) to keep relevant 
 persons informed of the status of a hold.
 (4) Basis for determination.--No determination under 
 this subsection may be based on any class of wire 
 transfers or persons.
 (5) Overdraft fees.--If the receiving depository 
 institution determines that a wire transfer for credit 
 to an account is a wire transfer described in paragraph 
 (1), the receiving depository institution shall not 
 assess any fee for any subsequent overdraft with 
 respect to such account, if--
 (A) the depositor was not provided with the 
 written notice required under subsection (f) 
 (with respect to such determination) at the 
 time the wire transfer was delayed for credit; 
 and
 (B) the overdraft would not have occurred but 
 for the fact that the funds so transferred are 
 not available.
 (6) Compliance.--Each agency referred to in section 
 610(a) shall monitor compliance with the requirements 
 of this subsection in each regular examination of a 
 depository institution. For the purpose of this 
 paragraph, each depository institution shall retain a 
 record of each notice provided under subsection (f) as 
 a result of the application of this subsection.
 (i) Rule of Construction.--Nothing in this Act may be 
construed to restrict or prohibit a depository institution 
involved with a deposit by check or wire transfer from 
communicating to any other depository institution also involved 
with the deposit that a depository institution has invoked an 
exception under this section to some or all of the requirements 
of section 603 with respect to the deposit.

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