KNOXVILLE TEACHERS FEDERAL CREDIT UNION

FUNDS AVAILABILITY POLICY

 GENERAL POLICY

Our policy is to make funds from your deposits available to you on the first business day after the day we receive your deposit. At that time, you may withdraw the funds, and we will use the funds to pay checks that you have written. Electronic direct deposits will be available on the day we receive the deposit.  Once they are available, you can withdraw the funds in cash and we will use the funds to pay checks that you have written. Our Funds Availability Policy applies only to deposited items drawn on institutions located in the United States.

A business day is defined as Monday through Friday, excluding federal holidays. The day of deposit is determined as follows:

  • If you make a deposit in person at our main office or one of our satellite offices (“our office”) before 5:00 p.m. on a business day that we are open, we will consider that day to be the day of deposit. Deposits made in person at our office after 5:00 p.m. or on a day we are not open will be considered made on the next business day we are open.
  • If you will need funds from your deposit, you should inquire when deposited funds will be available.

Knoxville Teachers Federal Credit Union reserves the right to refuse all or a portion of a deposit, if we determine there is a reason to refuse an item.

DELAYED AVAILABILITY

 In certain cases, we may not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit.

1. Irrevocable Transactions

In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit. The first $200 of your deposits, however, may be available on the first business day.

2. Exceptions

The credit union’s general policy of providing next business day availability may not apply whenever:

  • We have reason to believe that a check you deposit will not be paid.
  • You redeposit a check that has been returned unpaid.
  • You deposit checks totaling $5,000 or more on any one day.
  • You have overdrawn your account repeatedly in the last six months.
  • You have been a member of the credit union for less than 30 days.
  • There is an emergency, such as failure of communications or computer equipment.

In the case of delayed availability for any of the reasons outlined above, deposited funds may be held for up to 11 days.

NOTIFICATION OF HOLD

If your deposited funds are held for any reason, we will notify you in writing. The notice will tell you when funds will be available to you.

  • The written notice will be furnished to you as follows:
  • For deposits made in person at our office, the notice will normally be provided to you at the time you make the deposit. However, if we decide to place a hold on your deposit after you have left the credit union premises, we will mail you the notice no later than the next business day.
  • For deposits made other than in person at our office, the notice will be mailed to your no later than the next business day after the deposit is made.
  • If, after a deposit has already been made, the credit union receives information which then causes us to place a deposit hold, the notice will be mailed no later than the next business day after the hold is placed.

SPECIAL RULES FOR NEW ACCOUNTS

If you are a new customer, the following special rules will apply during the first 30 days your account is open.

Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000 of a day’s total deposits of cashier’s, certified, teller’s, travelers, and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be payable to you (and you may have to use a special deposit slip). The excess over $5,000 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit.

Funds from all other check deposits will be available on the 11th business day after the day of your deposit.

OTHER INFORMATION

 When we permit you to withdraw deposited funds before an item has been finally paid, and it is not paid for any reason, we have the right to charge your account with the item or to obtain a refund from you. This means that you are responsible for any returned items which you have deposited, and for any problems involving deposited items.

Whenever a check is accepted for deposit, the payee is required to endorse it. This endorsement should always be found in an area 1 1/2 inches from the trailing edge of the check. Failure to endorse the back of a check in the correct area may result in payee liability if a check is returned late due to the unreadability of the endorsement of another financial institution.