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Since systems are so automated now and since cashiers checks don't have anything defined in the MICR...how do you insure that next day availability is being applied?

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I contacted the personal banker who said she placed the hold because the check was a cashier's check drawn on a Tennesee bank (we are in Washington) and she wasn't sure of the authenticity of the check. The check did not have any of the bank's contact information on it and she could not contact the bank. In addition she said the check was unusual for the customer who said it was a loan. I told her she could not use prejudice just because the check was a cashiers check, but do her other suspicions give her reasonable grounds to place an exception hold under "doubt collectibility"?

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Sorry, I left out the reasonable cause exception -- if you can invoke that, then you are under the local/nonlocal rules. The commentary to 229.13(e) gives some guidance on this exception.

Just my personal opinion, but if I have real questions about the veracity of the item or have other reasons to really doubt collectibility, I always wonder if we've considered not accepting the deposit. I think sometimes we forget that Reg CC doesn't require us to accept a deposit - it just provides a framework for making those funds available if we do. (ok - end of soap box comments! )

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...do her other suspicions give her reasonable grounds to place an exception hold under "doubt collectibility"?

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