When placing a large deposit hold on a state government check (a certain check under 229.10(c)), do we give $200 next day, $4800 2nd day and remainder in 7 days or do we have to give the first $5000 next day and remainder in 7 days? (Check is almost $500,000)

$5,000 next day the remainder in 6.

If you want to combine a Case-by-Case hold and the large deposit hold, you would give $200 next day, $4800 2nd day and remainder in 7 days.

Randy: Did you mean 6 days vs. 7?

A State government check is normally available the next business day to which you can add 5 days - but I don't work with deposits much anymore, so if I am wrong, please feel free to correct me

If you have an exception hold reason, you CAN hold most next day items (including government checks) until the 7th business day. Refer to §229.13.

You could apply a large deposit hold, which would mean $5,000 next day, balance by start of business on the 7th day.
Or, if there is any reason to legitimately doubt collectibility, a reasonable doubt hold, for the whole thing, to the 7th day (on the other hand, why would you even take the check for deposit at all?)

John, just to clarify, wouldn't the balance have 7th day availability?

I was under the impression that the additional hold (of 5 days) was added to the local schedule that would apply (i.e. 2 days).
From the commentary to 229.13:

3. With respect to Treasury checks, U.S. Postal Service money orders, checks drawn on Federal Reserve Banks or Federal Home Loan Banks, state and local government checks, cashier's checks, certified checks, and teller's checks subject to the next-day (or second-day) availability requirement, the depository bank may extend the time funds must be made available for withdrawal under the large deposit, redeposited check, repeated overdraft, or reasonable cause exception by a reasonable period beyond the delay that would have been permitted under the regulation had the checks not been subject to the next-day (or second-day) availability requirement. The additional hold is added to the local or nonlocal schedule that would apply based on the location of the paying bank.

Yes, Adam. I hit the wrong key. I'm correcting it.

No problem, John. I just wanted to clarify based on the previous posts in this thread.

Thank you! I spent time researching this today and was about to make a similar post saying "six?". I thought I was going crazy when I saw Randy and John both indicate 6 days. Appreciate you correcting this.