§ 1424 Customer Withdrawal Time Limits

Financial Code·California

AI SummaryVerified

This law says banks must let customers withdraw money from their deposits within a reasonable time. The state makes sure banks don't hold your money too long.

Key Takeaways

•Banks can't keep your deposited money locked up for too long.
•The state decides what 'too long' means for all banks.
•This rule is for all banks in the state, not just big ones.

Example

You deposit a $100 check into your bank account on Monday.

The bank can't make you wait forever to use that money. They have to let you take it out soon, like in a few days.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1424 Customer Withdrawal Time Limits

The commissioner shall issue administrative regulations to define a reasonable time for permitting customers to draw on items received for deposit in the customer’s account. It is the public policy of this state to provide retail banking customers with the right to withdraw against items deposited with any depository institution located in this state within a reasonable period of time. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Last verified: January 11, 2026

Key Terms

reasonable time administrative regulations retail banking customers depository institution

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 1424.

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Key Takeaways

Example

Key Terms

Related Statutes

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