Deferred Availability

Temporary delay in funds availability on checks drawn on out-of-town banks. Checks with 0-day availability are credited the same day as received. Checks with l-day or 2-day availability-the average time it takes to clear checks drawn on distant banks-are posted to the sending bank's deferred account, and funds from this account are moved on a daily basis to the reserve account as these checks are paid. Even so, a bank may get credit for transit checks before funds are collected from the paying bank, which in turn creates Federal Reserve Float.