I need help deciphering Reg CC!
If you invoke a large deposit exception hold on a cashier's check, can you only hold the amount in excess of $5,000 for the extended period of time (local-5; non-local-11)? Normally we would place a case-by-case hold on the amount less than $5,000, but wouldn't those funds be subject to next day availability is this situation? Also, if a non-local large cashier's check was deposited into a new account, wouldn't the amount over $5,000 have to be available by the 9th day? Why is there less protection when dealing with a new customer?

(1) the amount in excess of $5,000 can be held 7 or 11 days, not 5 or 11 days. (2)Yes, the first $5,000 is subject to next day availability if it meets the other conditions, i.e., payable to the depositor, etc. (3) The new account thing? - You would have to ask your friendly Congressman that question.

In the case of a non-local cashier's check being deposited into a new account, do you have the option to invoke a large deposit exception hold for the benefit of getting those 2 extra days, or must you abide by the new account exception guidelines?

I think that it depends on your EFA disclosure. If you are utilizing the new account exception in your disclosure, probably not.

The real question is why are you holding a cashier's check to begin with? Do you think that it is no good? If that is the case - send it for collection and don't mess with holds.

If you question whether there may be a forged endorsement - a hold is not going to help you, the check can come back for a lot longer than the time a hold is going to buy you.

Honestly, I am not real sure why the teller chose to place a hold on this check, other than the fact that it was a new account. It could be because it did not indicate anywhere on the check that it was actually a cashier's check - it just said "Official Check".
I was just getting hung up on the fact that the regulation doesn't provide as much protection for the new account exception as it does the large deposit exception for next day availability items (when it is essentially the same situation - items over $5,000) .

I have something to add to this question. We have trained our staff that they may place holds on cashier's checks over $5,000 with the large deposit exception hold. Recently, we had a branch take in a cashier's check on deposit for $85,000+ and cash three others totaling $10,100. If we had placed a hold in this scenario, would we have only given them $5,000 and held the rest or given them $5,000 per item?

The first $5000 applies to the aggregate total of the next day items deposited in a single business day. So by providing $10,100 immediately, you gave the customer a greater allowance than $5000 mandated by the reg.

Our consumer account disclosure says that funds from a cashier's check payable directly to the customer are "available for cash withdrawal on the first business day after the day of your deposit, if you make the deposit in person to one of our tellers and use a special deposit ticket made available in our lobby offices from any bank teller ."

Am I correct in saying that the large deposit hold wouldn't be applicable in our situation if a customer used the special deposit ticket?

It depend on if your EFA disclosure also reserves the right to place exception holds on deposits.

"Special" deposit tickets usually have a tran code which makes the item deposited available for systems which would otherwise automatically place some type hold or delay in availability. While a large transaction hold could probably override the system, you would have to check. So it doesn't make sense that you you would give the special deposit ticket in the first place if you intended to place a hold.

Do many banks out there use "special" deposit tickets? Most banks I've dealt with provide next day availability on deposits anyway, so a special ticket is not required.