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#2242288 - 09/10/20 08:31 PM Overthinking Reg CC
ckme Offline
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ckme
Joined: Sep 2002
Posts: 255
Are the next day items (treasury check, official check, etc.) subject to next day availability under a large item exception? I know that only the treasury check gets next day under a new account. I thought new account was the most protective, but now I am second guessing myself.

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#2242294 - 09/10/20 08:46 PM Re: Overthinking Reg CC ckme
BrianC Offline
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BrianC
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Illinois
Quote
I know that only the treasury check gets next day under a new account.


This is not an accurate statement. Look at the reference in 229.13(a)(1)(ii) for new account exceptions:

(ii) Is subject to the requirements of Sec. 229.10(c)(1) (i) through (v) and Sec. 229.10(c)(2) only with respect to the first $5,525 of funds deposited on any one banking day; but the amount of the deposit in excess of $5,525 shall be available for withdrawal not later than the ninth business day following the banking day on which funds are deposited;

That reference covers Treasury checks, U.S. Postal Money Orders, Federal Home Loan or Federal Reserve checks, checks drawn on state or local government where you have offices, and cashier's, teller's and certified checks. In short, you must make $5,525 from those available next day and the remainder by the ninth business day.

If you use the large item exception in 229.13(b), then the first $5,525 of those checks must be made available the next business day and the remainder by the seventh business day.
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#2246097 - 12/02/20 10:29 PM Re: Overthinking Reg CC ckme
complyorelse Offline
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Am I correct in saying that under the large item exception hold of a next day item that the $225 does not have to be made available? Also under the large exception hold, the $225 does have to be made available next day for an item that is not a next day item though, correct?

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#2246099 - 12/02/20 11:14 PM Re: Overthinking Reg CC ckme
David Dickinson Offline
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David Dickinson
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Central City, NE
Under the Large Item Exception hold you can only delay funds in EXCESS of $5,525. The $225 is not relevant as you're not touching the first $5,525.

However, you can place a case-by-case delay on the first $5,525. In that case, you would make $225 available on the next business day, $5,300 available on the 2nd business day and the amount in excess of $5,525 on the 7th business day.
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#2246113 - 12/03/20 02:35 PM Re: Overthinking Reg CC ckme
complyorelse Offline
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Right!! Thank you, David.

A follow up question. We are a next day availability with case by case bank. If we have a next day item that is not deposited in person, if we choose to place a 2 day hold as allowed in the reg, do we have to provide a Case by Case notice? It seems we would have to since we are a next day bank.

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#2246119 - 12/03/20 03:29 PM Re: Overthinking Reg CC ckme
BrianC Offline
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BrianC
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Illinois
Yes, notice would be required.
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#2246133 - 12/03/20 07:40 PM Re: Overthinking Reg CC ckme
complyorelse Offline
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I have confused myself on the next day items with regard to large deposits. I am reading on other posts that we cannot place a case by case hold on next day items. Can we?

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#2246136 - 12/03/20 08:12 PM Re: Overthinking Reg CC ckme
BrianC Offline
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BrianC
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Illinois
You cannot place case by case holds on next day items deposited in-person and to the account of the named payee. (Also note that on-us checks and U.S. Treasury checks require next day availability even if they are not deposited in person.

See 229.10(c)(1).
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#2246137 - 12/03/20 08:23 PM Re: Overthinking Reg CC ckme
complyorelse Offline
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Thank you. I greatly appreciate it the clarification!

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