Accelerated Deposit Rule:
The Accelerated Deposit Rule refers to a financial regulation that requires financial institutions to expedite the processing and availability of deposited funds. Under this rule, banks and other financial institutions are obligated to make deposited funds available for withdrawal within a shorter timeframe than the standard hold period. This rule aims to provide customers with quicker access to their funds, allowing them to utilize the deposited amount for various financial transactions without unnecessary delays. The Accelerated Deposit Rule is typically implemented to enhance customer satisfaction and convenience, promoting efficient and timely financial transactions.
The Accelerated Deposit Rule is a legal provision that allows a landlord to require a tenant to pay an accelerated deposit in certain circumstances. This rule typically applies when a tenant has a history of late or non-payment of rent, or when the tenant has caused damage to the rental property in the past.
Under this rule, the landlord can demand that the tenant pay a higher deposit amount than what is typically required. The purpose of this accelerated deposit is to provide the landlord with additional security in case the tenant fails to pay rent or causes damage to the property in the future.
However, it is important to note that the accelerated deposit rule must comply with local laws and regulations. Some jurisdictions may have specific limitations on the amount of deposit that can be charged, or may require landlords to provide a valid reason for requesting an accelerated deposit.
Tenants should be aware of their rights and responsibilities under the accelerated deposit rule, and should carefully review their lease agreement to understand the terms and conditions related to deposits. If a tenant believes that the landlord is unfairly applying the accelerated deposit rule, they may have legal recourse to challenge the requirement.
Q: What is the Accelerated Deposit Rule?
A: The Accelerated Deposit Rule is a regulation that requires financial institutions to make deposited funds available to customers more quickly.
Q: When did the Accelerated Deposit Rule go into effect?
A: The rule was implemented by the Federal Reserve in 1987.
Q: How quickly must funds be made available under the Accelerated Deposit Rule?
A: The rule requires that the first $200 of a customer’s deposit be made available by the next business day, and the remaining funds must be available within a certain number of days, depending on the type of deposit.
Q: Are there any exceptions to the Accelerated Deposit Rule?
A: Yes, certain types of deposits, such as large or out-of-state checks, may have longer hold periods under the rule.
Q: How does the Accelerated Deposit Rule benefit customers?
A: The rule allows customers to access their deposited funds more quickly, providing them with greater financial flexibility and access to their money.
Q: What should I do if I believe a financial institution is not complying with the Accelerated Deposit Rule?
A: Customers who believe a financial institution is not following the rule should contact the Consumer Financial Protection Bureau or their state’s banking regulator to file a complaint.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
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