If a customer deposits in excess of $5,000 by more than one check(both local and non-local checks) in a given banking day, the Bank may extend the hold on the amount in excess of $5,000,by using the Large Deposit Exception Hold. But, how long can you hold the amount in excess of the $5,000, when you have both local and non-local checks that are deposited?

Any help would be appreciated! Thanks!

Hold the local checks for a maximum of 7 days and the non-local checks for a maximum of 11 days.

And you are able to determine which group (local or nonlocal) you release the $5,000 from.

To further clarify, how would you hold the following checks, using the Large Exception Hold, all deposited the same day into the same account:
Two local checks one for $1500, another for $2000, and a non-local check for $4000?

Since no check is over the $5,000, how long could you hold the first $5,000 and then the remaining $2500?

Thanks in advance!

Assuming that you want to use the large deposit exception hold, you start with the total of the deposit, which is $7,500. So you know that that the first $5,000 of the deposit will be subject to the 2/5 hold limits, and that $2,500 can be subject to the exception hold.

To maximize your holds, you need to release funds first from the local checks.

So ---

$100 available on first business day following the banking day of deposit.

$3,400 (the rest of the local check amount) available on the 2nd business day following the banking day of deposit.

$1,500 (from the nonlocal check) available on the 5th business day following the banking day of deposit.

$2,500 (the rest) available on the 11th business day following the banking day of deposit.

Thanks so much for the clarification!

Thanks John, that explanation helps a lot! BUT, how on earth do I do a Notice of Delayed availability on this? We use canned notices from Wolters Kluwer (Bankers Systems). I have one that speaks in detail about Large Dollar holds but the fill in the blanks are not suitable. should I make my own?

Bump - I need help completing a Notice of Delayed Availability for a large dollar hold. My canned notice doesn't seem to have the right wording.