Must a check from another financial institution state "official check" or "cashier's check", etc. on the physical check in order to be considered a next-day item for Reg. CC hold purposes? What is the rule on this?

The only requirements in Reg CC are that the check be:


Cashier's Check:
a. Issued by a financial institution
b. Drawn on the same financial institution
c. Signed by an officer of the financial institution

Tellers Check:
a. Issued by a financial institution
b. Draw on a different financial institution
c. Signed by an officer of the financial institution

The check does not have to have any special designation stating that it is a bank check, cashier's check, official check or otherwise.

One positive characteristic of these checks is that, if the depositor doesn't call the bank's attention to the fact that the check fits the definition (for example, a bank's treasurer's check and some forms of money orders are cashiers' checks by definition) by using a special deposit ticket or otherwise pointing out the check is a next-day item, the bank can handle it as a garden-variety check.

The definitions Brian provided are from the UCC. Regulation CC, however, tightens the definition a little. Under the UCC definition a bank's payroll check (if there are any banks out there that still issue them to pay staff members) would be a cashier's check. Under Regulation CC, it's not. Under the UCC a bank-issued bill-payment service check (if drawn on the bank itself) would be a cashier's check; under Regulation CC, it's not. The same goes for accounts-payable checks to vendors.

Check out the Regulation CC definition and official commentary on it in Reg CC section 229.2(i) and the definition and official commentary on teller's checks in section 229.2(gg) at https://www.bankersonline.com/regulations/12-229-002.

Of course, your bank can certainly stick with the UCC definition if it wants to treat those accounts-payable, payroll and bill-pay service checks as next-day items notwithstanding their exclusion under the Regulation CC definitions.