Situation has occured where a bank customer has presented a $37,000.00 Treasury check and wants cash. First thing I would like to ask is "are we breaking any laws by not cashing the check"? We want to make him deposit the check and then place a "large deposit exception" hold on the check in accordance with Reg CC. Something keeps pulling me back from that thinking that a government check cannot be held. Can someone give some guidence on this matter? Thanks!!

Could be a state law requiring the cashing of such or similar checks… don’t know of a federal law.

U.S. Treasury check deposited in an account of the payee is to be made available the next day. You can place a large deposit exception… $5000 is to be made available according to the bank’s availability schedule for any other deposit (generally next day), then hold the rest of the $$ up to 7 days (U.S. Treasury checks are considered as “local” checks).

Even if you place a hold, for these types of checks, little-to-no protection is given to the bank.

Go here and happy reading! http://www.bankersonline.com/regs/229/229.html

Try calling this number in order to verify the US Treasury check: 1-202-874-8400. I've used it and it's pretty quick...and you get a live person!!