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Cashier’s Checks & Next Day Availability
by John Burnett, BOL Guru
Guru Bio
Question: According to Reg CC, cashier’s checks are required to have next day availability. Is there an exception if we believe the cashier’s check is a fraud?
Answer: Yes. You have the option of refusing to accept the check (or any other check) for deposit, particularly if you think it might be fraudulent. Instead, you can offer to take the check for collection, which will provide you another cashier's check if the first one was good. A less desirable alternative would be to take the cashier's check for deposit and place an exception (reasonable cause to doubt collectibility) hold on it. That means you'll need to complete a hold notice and indicate your reason for doubting the check will be paid. The hold can be for the entire amount of the check, and can routinely be for up to seven business days (if the check encoding indicates it's on a local bank) or eleven business days otherwise.
First published on BankersOnline.com 5/12/08
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