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#2053830 - 12/11/15 07:29 PM Reg CC Hold
sway Offline
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Joined: Feb 2011
Posts: 127
Notice of Delayed Availability for a customer indicates that a exception hold (checks deposited exceed $5,000) was placed on an cashier's check in the amount of $20,000.00 on 6/3/2015.

$200 was held until 6/4/2015
$4,800 was held until 6/5/2015
$15,000.00 was held until 6/10/2015.

Was this hold done in accordance with Regulation CC or should have all of $5,000 been made available the next day (6/4/2015)?

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#2053844 - 12/11/15 07:56 PM Re: Reg CC Hold sway
Bankwoman1 Offline
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Joined: Dec 2015
Posts: 743
Midwest
My understanding of Reg CC is that funds from a cashier's check must be made available the next day. Unless deposited into a savings account - which then could be held as long as you want - since savings accounts do not fall under Reg CC.

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#2053847 - 12/11/15 08:01 PM Re: Reg CC Hold sway
Skittles Offline
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Skittles
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Posts: 13,957
TN
Yes - the first $5,000 should have been made available the next business day for a large deposit hold.
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#2053849 - 12/11/15 08:03 PM Re: Reg CC Hold sway
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 6,011
Illinois
If the Cashier's Check was deposited in person to the account of the named payee, then it cannot have a case by case hold. If that is the case in your example, then the correct hold timeframes would be:

$5,000 available 6/4/15
$15,000.00 available 6/10/15.
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#2053852 - 12/11/15 08:11 PM Re: Reg CC Hold sway
sway Offline
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Joined: Feb 2011
Posts: 127
Thank you for the help.

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#2060841 - 01/27/16 08:32 PM Re: Reg CC Hold sway
Cornfed Turtle Offline
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Posts: 1,323
"...Somewhere in Middle Americ...
Can I bring this back to the top with a related question?

Similar situation, but cashier's check is for just under $3,000. Account is not new and does not belong to a repeated overdrafter. Low balance but well maintained checking account. Customer is wanting to deposit and get cash back. Are there any hold options? (Thought I would ask while I'm looking on BOL for that cute quick reference card.)

Sorry this isn't my area of expertise. Love the variety of answers presented in my shop. I will never again question the annual training for tellers on this.

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#2060880 - 01/27/16 09:49 PM Re: Reg CC Hold sway
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 6,011
Illinois
If the cashier's check is being deposited in person to the account of the payee, then you must make the funds available the next business day. (Which means you do not have to give cash back today. You can make them come in tomorrow for it.) Granted you won't know by tomorrow if the check is counterfeit.

Not a repeat overdraft offender, but are there any other "reasonable cause to doubt collectability" options?

If the customer presents a letter stating that they have won the U.K. National Lottery along with the cashier's check, I'd say reasonable cause (and refuse the deposit).
You call the drawee bank and they are willing to divulge that the check is counterfeit.
The check has been altered in some way.
The check is post dated. (Stale dates won't apply to cashier's checks under most UCCs.)

Case-by-case hold is NOT an option for a cashier's check deposited in person to the account of the payee.
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#2060881 - 01/27/16 09:49 PM Re: Reg CC Hold sway
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,333
Cape Cod
With a cashier's check of $5,000 or less, and no new account or repeat overdrafter involvement, and assuming deposit made with a bank/credit union employee into an account of a payee of the check, your options are to provide availability by the next business day or refusing to accept the check for deposit. You aren't required to provide cash back.

If there's reasonable doubt the check will be paid (it would have to be an apparent counterfeit or forgery) you would be better served to refuse the deposit. But if you accepted it, you could hold the entire amount until opening hour on the 7th business day after the banking day of deposit.
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#2060900 - 01/27/16 11:11 PM Re: Reg CC Hold John Burnett
Cornfed Turtle Offline
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Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
Thank you both for the quick help. I am not popular right now, but I think our CO will be pleased when he returns.

Not easy being a teller, is it?

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#2060910 - 01/28/16 01:09 PM Re: Reg CC Hold sway
Skittles Offline
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Joined: Sep 2002
Posts: 13,957
TN
No Cornfed, it's not. And I believe many other employees think the tellers have it easy or that their jobs are menial. I for one do not think that way.

And, obviously, compliance is rarely popular.
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