Once more with feeling:

John Doe deposits a check for $25,000. on Monday. On Tuesday we make avail. the $100., leaving $24,900 still on hold. We want to use the dep. over $5,000. exception hold.

On Wed. of the FOLLOWING week we make the $24,900. avail.

Correct?

Incorrect

The Exception for a check in excess of $5000.00 requires that next day availability be given on $5000.00

You can exercise your right for a case-by-case hold in addition to the exception hold, and with no more non local checks, your availability looks like this.

Next day- $100.00
Second Day - $4900.00
Seventh Day - $20000.00

Oh Boy! Do I love this topic! You three step version assumes we are using the exception/case by case hold, right?

According to the commentary to 229.13(b) for Large Deposits Exception Holds:

Although the first $5,000 of a day's deposit is subject to the availability otherwise provided for checks, the amount in excess of $5,000 may be held for an additional period of time as provided in §229.13(h).

But you can combine a case-by-case and an exception hold to provide the three-step availability described above.