Question

Due to access to funds legislation,When performing a CVS on an item, must you make the first $100 available? (assuming criteria is met for access to $100)

A) Yes
B) No

Answer 1

The access to funds legislation requires that the first $100 of a deposited check should be made available by the next business day, assuming certain criteria are met. This is part of the Expedited Funds Availability Act and implemented by Regulation CC in the U.S.

Step-by-step explanation:

When performing a Cash Verification System (CVS) transaction on an item, the regulation often referred to as 'access to funds legislation' may indeed require that the first $100 of a deposited check be made available by the next business day, assuming the account meets certain criteria. This legislation, which is reflected in the Expedited Funds Availability Act (EFAA) and implemented by Regulation CC in the United States, is designed to ensure that consumers have timely access to their funds. While there are exceptions based on the type of account or the source of the check, in general, the requirement is that at least $100 must be made available. This provides account holders with some immediate liquidity even as the rest of the funds are being processed.