Click to return to BOL home page
Banker Store eCard Exchange Vendor Connect Career Connect Learning Connect Bankers Information Network
Home Compliance Lending Operations Security Marketing Technology/eBanking
Top Stories Bankers' Threads BOL Conferences CrimeDex Risk Management FREE Briefings Record Retention

   

















    Site Map

    Our Sponsors

    Home



Compliance Gurus
Lending Gurus
Security Gurus
Marketing Gurus
Technology Gurus
eBanking Gurus

Print Friendly! Email This Article! Discuss NOW!



International Transaction and Late Returns
by John Burnett, BOL Guru
Guru BIOS

Question: Our institution accepted a check drawn on the Royal Bank of Canada payable in U.S. funds for $73,000 to be deposited on 5/3/2004, and placed holds on $4,900 of the funds for 5 days and on the remaining amount ($68,100) for 11 days. Are we required to send an additional Notice of Hold to the customer as per Reg CC if we extend the hold beyond the 11 days? Can these holds be extended indefinitely, or at least until we receive credit for the check? Does this affect our Truth in Savings disclosure to our customer? This particular item was returned to our bank 5/28/2004 as counterfeit. We feel this is a late return. It is clear that the bank in Canada received the item on 5/14/2004 and we never received any notification that this item was being returned to us. What other measures could we have taken to prevent our exposure in this circumstance?

Answer: I will assume this check was drawn in US funds against the RBC in Canada, and not against one of its US-based offices. If that is the case, the concept of "late return" can't be applied, since the Canadian bank is not subject to the laws of any of the states, nor is it subject to any US federal regulation such as Regulation CC.

Speaking of Regulation CC, if the check was drawn against a foreign bank, even though it's denominated in US funds, it is not subject to Regulation CC anyhow, so you could have placed an indefinite hold with impunity.

Of course, even if the check had been subject to Regulation CC, you could have done an end-run (and probably should have) by refusing to accept the check for deposit, and taking it instead for collection.

First published on BankersOnline.com 4/4/05


Home | Compliance | Lending | Operations | Security | Marketing | Technology | eBanking
BOL Archives    Privacy Policy    Important Disclaimer   Recommend This Site !   Contact Us


BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.