Statement of Administration Policy: H.R. 2443 - Expedited Funds Availability Act

(House)
(St. Germain (D) Rhode Island and 145 others)

The Administration believes that H.R. 2443 is unnecessarily rigid and prescriptive. It could result in the imposition of substantial costs on depository institutions, costs that would in all likelihood simply be passed on to consumers of bank services. As a consequence, the Administration believes that any legislation addressing these important matters take the general approach of S. 1841, a somewhat similar proposal pending in the Senate. S. 1841 would require depository institutions to notify depositors of their funds availability policies and would afford the Federal Reserve Board essential flexibility in both improving the check clearing system and expediting the availability of depositors' funds.