I have a customer who deposited a $500 check and a $2,000 check on the 1st . The teller then placed a case-by-case hold on the $2,000 check and entered the hold so that it released $2,000 on the 3rd. No $200 was given next day on the 2nd because the teller believed the next day availability of the $500 check covered the $200 requirement. Is this a correct assumption?

Yes.

Thank you. I agree, but I have deposit operations people disageeing with me.

Then I suggest that the other deposit operations people reread Reg CC 229.10(c)(1)(vii)(B) which states that the availability is based on the aggregate amount of checks deposited in one business day.

(Note ignore the fact that part A still says $100.)