Situation:One payroll ($400) and one personal check ($600) is deposited together. The bank's policy is next day availability. Since the bank is giving next day availability to the $400 check, is it also required that we provide the first $100 of the the $600 check.

No - you only need to give the first $100 availability from the combined local and non-local items deposited by the customer on any one day. The fact that you normally give next day availability to a local or non-local item doesn't require you to give even MORE availability.

On your hold notice, you should list the combined total of the deposit ($1,000) and then show that $600 will not be available until ______ (give the # of days or date) In your scenario, of the $1,000 local/non-local items, you are making $400 available the next day - clearly more than you are required.

HOWEVER - if the payroll check is by Cashier's Check, Teller's Check, Treasury Check, Postal Money Order, etc., then you WOULD need to make $100 of that personal check available the next day.

Is anyone aware of banks that issue money orders in the place of official checks? We received a large check for deposit and on the front of the check it says BANK MONEY ORDER. It appears to be signed by a bank employee.

When you say "official check" do you mean a cashiers check? That seems crazy.

A Bank Money Order, from what I understand, it essentially a one-check checking account. The customer deposits funds at the Bank in exchange for a negotiable instrument. And like a checking account, the customer can place a stop payment. That is why only POSTAL Money Orders get next-day treatment under Reg CC.

An "Official" check is usually a "Tellers" check as defined in Reg CC - a check drawn by a bank on another bank or payable through that bank. A "Cashier's" Check is a check drawn on the bank itself and is a direct obligation of the bank (among other things as shown in 12 CFR 229.2(i)

I just thought it odd that a bank "money order" would be in such a large amount ($50,000). Yes, Bank Money Order is printed on the check and the bank confirms that the funds are good.

I agree that it is unusual to see a Bank Money Order for such a large amount. Typically, Money Orders have a dollar limit printed on the face.

My question to the issuing bank would be - are these an obligation of the Bank or still the obligation of the customer. The biggest concern is if the customer has the right to place a stop payment on the items.

If the item does not qualify as a "Cashier's Check" or "Tellers Check", then you can place an Extended hold for $45,000.