I'm doing some Reg. CC training and I want to be sure I have this correct. A cashier's check (yes, a real one) is made payable to John and Mary. Both John and Mary come into the Bank, go to a teller and endorse the check. Mary, who is not an accountholder, correctly endorses the check over to John. John endorses it and deposits the check into an account where he is the only owner. We do not require any special deposit ticket to obtain next-day availability, but is this really a next day item? Were the Reg. CC conditions for next-day availability for cashier's check fulfilled?
1. Deposit was made to an employee of the bank, and
2. Special deposit ticket was used, if bank requires it and
3. Deposited into the account of the payee.

The fact that Mary was on the cashier's check and not on the account, does that disqualify the cashier's check as a next day item, which I believe means it becomes either a 2-day (local) item or a 5-day (nonlocal item)?

Is this the correct interpretation of the Reg.?

All responses appreciated.

The regulation specifically says that the check must be deposited "[in] an account held by a payee of the check" [emphasis added].

As long as the check is deposited to an account held by any one (or more) of the payees, it passes that test.

Thanks John,