Expedited Funds Availability Act - EFAA

AAA

DEFINITION of 'Expedited Funds Availability Act - EFAA'

The Expedited Funds Availability Act (EFAA) was implemented to regulate the hold periods on deposits made to commercial banks. Enacted by U.S. Congress in 1987, the EFAA also standardized financial institutions' use of the deposit holds. The EFAA specifies the types of holds that banks can utilize on a check deposit, depending on the type of account and the amount of the deposit.

INVESTOPEDIA EXPLAINS 'Expedited Funds Availability Act - EFAA'

The Expedited Funds Availability Act intends to standardize the handling of deposit holds. Banks and other financial institutions must inform customers of their policies regarding deposit holds, as well as any changes to the policies.

RELATED TERMS
  1. Depository

    On the simplest level, depository is used to refer to any place ...
  2. Bank Reserve

    Bank reserves are the currency deposits which are not lent out ...
  3. Dual Banking System

    The system of banking that exists in the United States in which ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  6. Deposit

    1. A transaction involving a transfer of funds to another party ...
Related Articles
  1. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  2. What Was The Glass-Steagall Act?
    Retirement

    What Was The Glass-Steagall Act?

  3. Who Backs Up The FDIC?
    Options & Futures

    Who Backs Up The FDIC?

  4. An Investor's Guide To Bank Stress-Testing
    Investing Basics

    An Investor's Guide To Bank Stress-Testing

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center