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#211471 - 07/15/04 04:13 PM Regulation CC
Tina A Sweet Offline
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Tina A Sweet
Joined: Aug 2001
Posts: 1,033
Marysville, Ca.
Ok, this is my scenario. I have a check for 2,000.00 and another check for 300.00. Total deposit 2300.00. I want to place a hold on the 2,000.00 check but not the 300.00 check. Is it correct under Reg CC that because I choose not to place a hold on the 300.00 I have now given the depositor their 100.00 availability through that 300.00 check? This has come up in our operational audit and I disagree based on what I have read under Reg CC.
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Operations Compliance
#211472 - 07/15/04 05:29 PM Re: Regulation CC
PABanker Offline
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Blue Ball, PA 17506
What type of hold are placing on this check (i.e. case by case hold?)

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#211473 - 07/15/04 05:32 PM Re: Regulation CC
VioletRose Offline
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VioletRose
Joined: Jul 2004
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Land Of The Lost
It is my interpretation that you must give the first $100.00 of the $2,000.00 hold. I have had others disagree with this, saying that because some of the deposit, in your case the $300.00, was not held that the customer got their 100.00.But I believe that you need to give the fist 100.00 of the hold amount, not the deposit amount. This is only my opinion.

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#211474 - 07/15/04 05:35 PM Re: Regulation CC
Tina A Sweet Offline
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Tina A Sweet
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Marysville, Ca.
Yes, it would be a case-by-case.
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#211475 - 07/15/04 06:36 PM Re: Regulation CC
JacF Offline

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Joined: Nov 2001
Posts: 6,719
PA
Quote:

Total deposit 2300.00. I want to place a hold on the 2,000.00 check but not the 300.00 check. Is it correct under Reg CC that because I choose not to place a hold on the 300.00 I have now given the depositor their 100.00 availability through that 300.00 check?


Yes, because the requirement is to make $100 of the customer's total local and nonlocal check deposits for the day available the next day. You have already met the day's $100 requirement by allowing next day access to the entire $300 check (assuming the $300 is a local or nonlocal item subject to holds.)

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#211476 - 07/15/04 07:29 PM Re: Regulation CC
GreatBlue Offline
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GreatBlue
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Colorado
FWIW, I agree with Jac.
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#211477 - 07/15/04 08:55 PM Re: Regulation CC
PABanker Offline
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Blue Ball, PA 17506
I agree with Jac but if your bank gives next day availability on all check deposits it needs no special procedure, except when the bank elects to delay availability on all or portion of a deposit using the case-by case rules for delaying availability. By my opinion you must place this special circumstance in the REG CC "hold" procedures.

There would be methods in place to monitor mulitple deposits and give the availability as deemed.

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#211478 - 07/18/04 10:45 PM Re: Regulation CC
Princess Romeo Offline

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Quote:

It is my interpretation that you must give the first $100.00 of the $2,000.00 hold. I have had others disagree with this, saying that because some of the deposit, in your case the $300.00, was not held that the customer got their 100.00.But I believe that you need to give the fist 100.00 of the hold amount, not the deposit amount. This is only my opinion.




Reg CC 229.10 disagrees:

(c) Certain check deposits.--(1) General rule. A depositary bank shall make funds deposited in an account by check available for withdrawal not later than the business day after the banking day on which the funds are deposited, in the case of--

(vii) The lesser of--
(A) $100, or
(B) The aggregate amount deposited on any one banking day to all accounts of the customer by check or checks not subject to next-day availability under paragraphs (c)(1)(i) through (vi) of this section.


The $100 availability is not dependent on what you placed the hold on, it depends on the total amount of local/non-local items deposited.
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#211479 - 07/19/04 07:39 PM Re: Regulation CC
HappyGilmore Offline
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Pulling people out of the ditc...
I believe you are interpreting Reg CC incorrectly. You have admitted to not placing a hold on the $300 item, yet want to also count $100 of the $300 towards the $2,000. My interpretation would be that you have actually placed a hold for $100 of the $300 using your method.

Check your state banking laws as well. In some states, the hold is relative to the entire deposit, in which case you would be okay. In others, is is on a check by check basis, regardless of the total deposited. To play it safe, why not give the customer $100 of each and save yourself a headache?

Also, what do your deposit guidelines state? (Don't you just hate those auditors?)
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