I have a deposit consisting of two checks, $420 & $500. The $500 check is o.k. & we don't intend to hold for it. The $420 check we do want to hold. Since the customer deposited $800 and got $120 back in cash can we place the hold for $420 or do we have to make $100 available since the hold only pertains to the one check?

You can hold the full $420 because the $100 next-day availability is covered by the $500 check. Of course, this assumes that the $500 check is subject to holds (not a next-day item, as defined by Reg CC.)

JacFSB,

1. Wouldn't the $100 availability be covered by the $120 cash back?

2. What did you mean by the sentence "Of course, this assumes that the $500 check is subject to holds (not a next-day item, as defined by Reg CC.)"?

Reg. CC is a tough one.............

Jac means that the $500 is not a cashiers check, US treasury, or other item that must be available the next day. There is a great Reg CC paper in the Bankers Tools section called the Basics of Funds Availability. It's really good and covers CC from front to back

Thanks to everyone for their help!