What is the Expedited Funds Availability Act?

The Expedited Funds Availability Act (EFAA) is a federal law that outlines the maximum amount of time a bank in the United States can hold a customer’s funds if they are deposited into an account. Customers in Georgia who have deposited funds into an account in Georgia should expect their deposits to be available within a certain amount of time, depending on the type of deposit they made. The EFAA was passed by the U.S. Congress in 1987 in order to reduce the amount of time money is held in accounts, so that customers can access their money and use it without delay. The act states that funds from deposits made using cash or electronic transfers must be available within one business day, while funds from certain checks must be available within two business days. The EFAA also states that if a customer deposits a check that requires further verification, the bank can hold the funds for up to nine business days. In addition, if a customer deposits more than $5,000 in one day, a bank in Georgia can hold the funds for up to nine days to investigate the source of funds. Overall, the Expedited Funds Availability Act is an important piece of banking law that helps ensure the funds of customers in Georgia are available in a timely manner. It reduces the amount of time that banks can hold deposited funds, allowing the customer to access their money and use it without delay.

Related FAQs

What is the Uniform Electronic Transactions Act?
What is the Investment Company Act?
What is the Truth in Savings Act?
What is banking law?
What is the Home Affordable Foreclosure Alternatives Program?
What is the Electronic Funds Transfer Act?
What does a bank need to consider when making a loan?
What is the U.S. Bankruptcy Code?
What is the Bank Secrecy Act?
What is the difference between a secured loan and an unsecured loan?

What is the Expedited Funds Availability Act?

Related FAQs

Related Blog Posts