customer deposits non-local check for $15,000 and wants $2,000 cash back from the deposit. the total deposit amount is $13,000 for which a large deposit exception hold is placed.
since we gave $2,000 in cash, we do not have to make the first $100 available the next day. my questions is, can we in any case restrict the cash back when the check is deposited. Could we refuse to give $2,000 and just give $100 in cash...?
Thanks for your help

In short - yes

Could you please give a citation in Reg CC to support your conclusion?
Thank you.

Well, you yourself acknowledged that you only have to make $100 available the next business day. There is no regulatory requirement to give them any cash at all before that time. Giving them $100 at the time of deposit isn't even required, you could make them wait until tomorrow. Not sure what part of Reg CC you would like me to cite???

This, of course is predicated by you having given the customer the appropriate funds availability disclosures giving you the right to delay funds under the regulation.

Thanks for your help.
I think our personnel might be intimidated to ask the customer to change their deposit slips...!!

Remember, just because you give them the $2,000 doesn't mean that you can't place a hold on the non-local check deposit minus the $100 if they have other available funds in the account from which they have withdrawn the $2,000. It would be treated the same as cashing a check and holding funds in an account - see 229.19(e)(2).

It was my understanding that for a large amount with an exception hold, the first $5,000 was to be made available the next business day.

Oh, don't you just hate Reg. CC? If you place an exception hold for a large item, the exception hold only applies to the amount over $5,000. That means the first $5,000 is covered by the general availability schedule. If the bank makes funds available on the next business day, the $5,000 would generally be available the next business day. However, if the bank has reserved the right to place case-by-case holds, and they decide to do so for this item then $4,900 can be delayed based on the case-by-case local or non-local hold limits. Clear as mud, right?