So Regulation CC does not apply to savings accounts; only to checking or share draft accounts. The bank can safely issue this guarantee because it immediately debits the payer's account for the amount of the check, and therefore has no risk.In effect, the required funds have been set aside by the bank. A withdrawal from a share account, which is an account at credit union. Transaction Accounts Regulation CC applies to all credit unions, but it only applies to transaction accounts. Your savings account represents your share of the credit union, thus it’s called a “share account” (or sometimes a share savings account). Answer by Brian Crow: Section 229.2(a) of Reg CC defines an account as a "demand deposit account, a negotiable order of withdrawal account, a share draft account, an automatic transfer account, or any other transaction account described in 12 CFR 204.2(e)." To get a banker’s draft, a bank customer must have funds (or cash) available. Similar to a cashier’s check, a legitimate bank draft is safer than a personal check when accepting large payments. This is rare and usually involves small At the federal level, Reg CC applies to your checking and NOW accounts. Failure to have sufficient funds in your account will result in … A bank draft is a check that is drawn on a bank’s funds and guaranteed by the bank that issues it. A share account is a special account designed in such a way that they are exclusively used to hold credit union shares. Demand deposits, negotiable order of withdrawal (NOW) accounts, and share draft accounts are all included in the definition of "transaction account." Also, since a draft withdrawal automatically withdraws funds from your account according to a fixed schedule, you will need to make sure you have sufficient funds in your bank account to cover the withdrawal. A bank draft is a payment on behalf of the payer, which is guaranteed by the issuing bank.A draft is used when the payee wants a highly secure form of payment.. How to use draft in a sentence. Checking accounts are “draft share accounts” because they’re share accounts you can draft checks from (and more, like use online bill pay and debit cards). 0 Accept the draft pending receipt of payment from the member to cover the overdraft. Draft definition is - the act of drawing or pulling in a net. A demand deposit account is just a different term for a checking account. The difference between a demand deposit account (or checking account) and a negotiable order of withdrawal account is the amount of notice you need to give to the bank or credit union before making a withdrawal. Non-transaction accounts, such as most credit union regular share accounts or membership accounts, are not governed by Reg CC. "Time deposits" and "savings deposits," discussed further below, are excluded from the Regulation D definition of transaction account. While share accounts are structured differently from accounts at ordinary banks, share drafts … Overdrafts When a credit union receives a share draft that overdraws a share draft account, it has several options available: 0 Return the draft as not paid for lack of sufficient funds.