CHAPTER 478

FORMERLY

HOUSE BILL NO. 617

AN ACT TO AMEND CHAPTER 9, TITLE 5 OF THE DELAWARE CODE RELATING TO AVAILABILITY OF FUNDS.

WHEREAS, the practice of some financial institutions of delaying a customer's ability to withdraw funds deposited by check for several days after the date of deposit has been an issue of concern; and

WHEREAS, interest in limiting or restricting the delayed availability practice has increased recently both at the state and federal level; and

WHEREAS, it is the belief that the practice of delaying availability results in problems for depositors, especially when the policy is Inflexible or is not disclosed to depositors in an effective manner; and

WHEREAS, there is normally no justification for delaying availability on a Social Security or other government check deposited into an established account beyond the date when an institution receives credit for the check; and

WHEREAS, it is recognized that it may be appropriate to delay availability in certain specific situations, it is not necessary to delay availability on all deposited checks.

NOW, THEREFORE:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 9, Title 5 of the Delaware Code by adding a new Section 936 to read as follows:

"5936. Availability of Funds

Financial institutions that delay availability shall review their policies and consider reducing the delay periods to the extent possible, consistent with prudent business practices.

Financial institutions shall disclose to depositors in an effective manner as to their delayed availability policies.

Financial institutions shall refrain from imposing unnecessary delays on all checks, particularly on Social Security and other government checks deposited into established accounts beyond the time required to receive credit for the checks."

Section 2. This Act shall become effective sixty (60) days after signature by the Governor.

Approved September 29, 1984.