My understanding is that Reg CC requires the bank to send a notification to the customer when a deposit item has been returned for nonpayment, stop payment, etc. (item over $2,500). Does this notification have to tell the customer when the hold will be released? Thank you.

If the bank actually places a Regulation CC exception hold on the account (reason: reasonable doubt of collectibility) then the notice should include the number of days the hold is for, or the date the funds will be available.

Of course, if the bank charges the item back, Reg. CC isn't an issue.

I'm sorry, I am not have explained this right. Customer deposits item (say $6,000). Bank receives notice from paying bank that the item is being returned. Bank subsequently places a "hold" for items over $2,500. Bank does send a notice when an item is returned, but don't they have to send a notice when they do this type of hold?

I think that some banks use their hold system to affect a return at the time of a large item return notice. This is purely an operational process and should not be confused with a Reg CC hold. At the time of placing such a "hold", a returned item notice should be generated and sent to the customer.

When the bank of first deposit receives a notice from the drawee bank that it's returning that $6,000 check, the bank of first deposit can either place a hold or simply charge the depositor's account.

If they place a hold, they have to indicate the reason and the hold cannot be for more than the regulatory maximum duration. The duration of the hold is one of the items that is supposed to be included in the notice.

If they simply charge the account (which they can do before the item comes back), they send an advice of charge. They will also have to forward the $6000 check when it finally arrives.