New Check Processing Procedures

Because so many members have had questions and concerns about the new check processing procedures, we want to let you know that we have been listening. We hope it will alleviate some anxiety if we explain what we are trying to achieve with these new procedures.

The goal of your Credit Union management is to provide you and all members with efficient and low cost programs. If we are to meet our goal, we must contain our costs. The fees the check processor was charging the Credit Union were rising at an ever-increasing rate. In addition, the processing company was not keeping up with technology changes that we feel are important to you. One technological change that we feel you will value is being able to view your cleared checks directly from your PC.

These and other factors lead to our decision to change check processors. On October 1st, we implemented the new check processing system. This new checking system will streamline check processing, increase levels of responsiveness from member service representatives, and modify check-clearing solutions while also enabling you to obtain copies of cleared checks using the Internet.

During the next six months, we will be phasing out our old processor and implementing the new system. This six-month period will allow you time to order new checks and hopefully use most of your supply of old checks.

It is important that you order new checks with the proper encoding before March 31, 2005. Also you will need to notify all parties making direct deposits to your account (such as your employer and social security) or direct debits from your account (such as your insurance company, creditor, and utility companies) as early as possible of the proper routing and transit number. You will need to monitor these transactions to ensure they are properly posted to your account.

Important Facts to Remember:

Correct credit union routing and transit is254075470.
Initial phase-in of new process begins October 1, 2004 and will end on March 31, 2005. All transactions must be the proper routing and transit number by March 31, 2005.
We apologize for any uncertainty or confusion about this change; we wish that our communications with you had been better. We hope you understand that we did not make this decision lightly, and the long-term effects on the Credit Union and you, our member, were considered thoroughly. Our new check processing system will enable you to view cleared checks directly on our home banking system and provide cost and timesavings for your credit union.

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW OR ONLINE ACCOUNT

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you.

We may also ask to see your Drivers License or other identifying documents.

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DVA Federal Credit Union
Regulation CC:
Funds Availability Policy

Ability To Withdraw Funds

DVA Federal Credit Union's policy concerning the availability of money the member has deposited into their account depends on the form in which the funds were received. In some instances the member will be entitled to immediate availability of the funds; in other cases the member's ability to have access to the funds may be delayed. During the delay the member may not withdraw the funds in cash, and we will not use the funds to pay checks that the member has written.

Determining the Availability of a Deposit

The length of the delay is counted in business days from the day of deposit. Every day is a business day except Saturdays, Sundays, and federal holidays. The length of the delay varies depending on the type of deposit and is explained below.

Immediate Availability

U.S. Treasury checks that are payable to you.
Wire transfers and preauthorized credits, such as social security benefits, military allotments and other payroll payments.
Cash.
State and local government checks that are payable to you.
Cashier's, certified, and teller's checks that are payable to you.
Federal Reserve Bank checks, Federal Home Loan Bank checks, and postal money orders, if these items are payable to you.
DVA FCU checks payable to you.
Payroll checks payable to you.
Other Check Deposits

The delay for other check deposits depends on whether the check is a local or a non-local check. Our policy is to make funds from local and non-local checks available as follows.

Local checks. The first $100 from a deposit of local checks will be available on the first business day after the day of your deposit. The remaining funds will be available on the second business day after the day of your deposit.

Non-local checks. The first $100 from a deposit of non-local checks will be available on the first business day after the day of your deposit. The remaining funds will be available on the fifth business day after the day of your deposit.

Local and non-local checks. If member deposits both categories of checks, $100 from the checks will be available on the first business day after the day the deposit, not $100 from each category of check.
Longer Delays May Apply

Funds you deposit by check may be delayed for a longer period under the following circumstances:

We believe a check you deposit will not be paid.
You deposit checks totaling more than $5,000 on any one day.
You redeposit a check that has been returned unpaid.
You have overdrawn your account repeatedly in the last six months.
There is an emergency, such as failure of computer or communications equipment.
Large deposits to inactive accounts. Deposits greater than $1,000, no activity within the last 6 months.
We will notify the member if we delay their ability to withdraw funds for any of these reasons, and we will tell the member when the funds will be available. They will generally be available no later than the next business day after the day of your deposit for local checks and 5 business days for non-local checks.

DVA FCU reserves the right to not accept instruments for the following reasons: stale dates (more than 6 months old); post dated; third party instruments; improperly indorsed; or any instrument we deem not acceptable under customary banking practice.

Special Rules for New Accounts

For new members the following special rules will apply during the first 30 days the account is open.

Funds from deposits of cash and electronic direct deposits to a member's account will be available on the day we receive the deposit. Funds from wire transfers, and the first $5,000 of a day's total deposits of cashier's, certified, teller's, traveler's, and federal, state and local government checks will be available on the first business day after the day of deposit if the deposit meets certain conditions. For example, the checks must be payable to the member. The excess over $5,000 will be available on the ninth business day after the day of your deposit. If the deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of deposit.

Funds from all other check deposits will be available on the 9th business day after the day of your deposit.