12 U.S.C. § 4005

Current through P.L. 118-64 (published on www.congress.gov on 05/24/2024), except for [P. L. 118-63]

Section 4005 - Payment of interest

(a) In general

Except as provided in subsection (b) or (c) and notwithstanding any other provision of law, interest shall accrue on funds deposited in an interest-bearing account at a depository institution beginning not later than the business day on which the depository institution receives provisional credit for such funds.

(b) Special rule for credit unions

Subsection (a) shall not apply to an account at a depository institution described in section 461(b)(1)(A)(iv) of this title if the depository institution-

(1) begins the accrual of interest or dividends at a later date than the date described in subsection (a) with respect to all funds, including cash, deposited in such account; and

(2) provides notice of the interest payment policy in the manner required under section 4004(e) of this title.

(c) Exception for checks returned unpaid

No provision of this chapter shall be construed as requiring the payment of interest or dividends on funds deposited by a check which is returned unpaid.

12 U.S.C. § 4005

Pub. L. 100-86, title VI, §606, Aug. 10, 1987, 101 Stat. 646.

STATUTORY NOTES AND RELATED SUBSIDIARIES

EFFECTIVE DATESection effective Sept. 1, 1988, see section 613(b) of Pub. L. 100-86 set out as a note under section 4001 of this title.

account: The term "account" means a demand deposit account or other similar transaction account at a depository institution.
business day: The term "business day" means any day other than a Saturday, Sunday, or legal holiday.
cash: The term "cash" means United States coins and currency, including Federal Reserve notes.
check: The term "check" means any negotiable demand draft drawn on or payable through an office of a depository institution located in the United States. Such term does not include noncash items.
credit: The term "credit" means the right granted by a person to a consumer to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment for such purchase.