HD4 - Check-holding Practices of Financial Institutions in Virginia

  • Published: 1987
  • Author: State Corporation Commission and Bureau of Financial Institutions
  • Enabling Authority: House Joint Resolution 129 (Regular Session, 1986)

Executive Summary:
House Joint Resolution (HJR) 129, agreed to by the 1986 General Assembly of Virginia, requested the Bureau of Financial Institutions of the State Corporation Commission to monitor federal activity with respect to check-holding practices of financial institutions and specifically to study the check-holding practices of Virginia financial institutions. This report is prepared in response to HJR 129. It supplies informational background for the consideration of the Joint Subcommittee, without making policy recommendations.

The first part of the report describes briefly the legislative developments that have occurred at the federal and state levels. The second section summarizes the results of a survey conducted by this Bureau of the check-holding practices of Virginia banks and savings institutions. The results of the survey, with explanatory comments, are detailed in a third section. Reference material, containing the questionnaire used in the survey and a number of states' laws that govern check-holding practices of financial institutions, can be obtained from the Bureau of Financial Institutions.