Learn More - Click Here!

Thread Options
#2260917 - 10/08/21 01:30 PM HOLD (Lottery Check)
Linkpars Offline
100 Club
Joined: Jan 2007
Posts: 179
Kentucky
Had someone question a hold on a lottery check. They questioned if we would considered it a "Government" check. I think not, but now it makes we wonder. Would you place a hold or is it not allowed?

Return to Top
Operations Compliance
#2260918 - 10/08/21 01:42 PM Re: HOLD (Lottery Check) Linkpars
M Cockrell Offline
Diamond Poster
M Cockrell
Joined: Jan 2003
Posts: 1,017
Dallas, TX
1. Does the check indicate it's issued by a government entity?
2. Even if so, what would preclude an exception hold (e.g., large item, reason cause to doubt collectibility)?
_________________________
"Remember no man is a failure who has friends." - Clarence (the Angel) Oddbody - It's a Wonderful Life

Return to Top
#2260920 - 10/08/21 02:07 PM Re: HOLD (Lottery Check) Linkpars
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
I can see a large item hold, but how could you doubt collectability on a gov't issued check? (I mean since it is not a Federal check and the debt ceiling is temporarily raised smile )
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2260921 - 10/08/21 02:11 PM Re: HOLD (Lottery Check) rlcarey
M Cockrell Offline
Diamond Poster
M Cockrell
Joined: Jan 2003
Posts: 1,017
Dallas, TX
Reason to doubt collectibility would be predicated on calling the issuer/issuing bank to validate issuance/verify funds.

Additionally, asking the payee about whether or not they entered the alleged lottery might also provide reasonable doubt.
_________________________
"Remember no man is a failure who has friends." - Clarence (the Angel) Oddbody - It's a Wonderful Life

Return to Top
#2260922 - 10/08/21 02:13 PM Re: HOLD (Lottery Check) M Cockrell
M Cockrell Offline
Diamond Poster
M Cockrell
Joined: Jan 2003
Posts: 1,017
Dallas, TX
Futhermore, to my knowledge, there's no requirement to accept the check for deposit.

If you opt to accept the check, send it for collections rather than a normal deposit.
_________________________
"Remember no man is a failure who has friends." - Clarence (the Angel) Oddbody - It's a Wonderful Life

Return to Top
#2260924 - 10/08/21 02:16 PM Re: HOLD (Lottery Check) Linkpars
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
If either happened - they would be sent down the road. Why would you even accept the check in either case.

Also, the failure to get the other bank to verify the check or whether that it might clear (good luck in ever even getting an answer on that question in today's world) is never a valid reason to doubt collectability.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2260927 - 10/08/21 03:06 PM Re: HOLD (Lottery Check) Linkpars
Linkpars Offline
100 Club
Joined: Jan 2007
Posts: 179
Kentucky
The check has the state seal stamped on it, but I guess where it was a "Lottery" check I just had my doubts. We did place a large $ hold on the check.

Return to Top
#2261264 - 10/19/21 07:17 PM Re: HOLD (Lottery Check) Linkpars
HappyGilmore Offline
10K Club
Joined: Jun 2004
Posts: 19,312
Pulling people out of the ditc...
should be pretty simple to determine if your customer did, in fact, win the lottery, as this is public information and should be on the state lottery website. In my state, the check is drawn on a commercial bank and titled "louisiana lottery corporation" but it is not a "government" check, meaning not drawn on the state treasury, but a commercial bank.
_________________________
Providing alternative truths since the invention of time

Return to Top
#2261324 - 10/20/21 06:45 PM Re: HOLD (Lottery Check) HappyGilmore
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,336
Cape Cod
Originally Posted by HappyGilmore
should be pretty simple to determine if your customer did, in fact, win the lottery, as this is public information and should be on the state lottery website. In my state, the check is drawn on a commercial bank and titled "louisiana lottery corporation" but it is not a "government" check, meaning not drawn on the state treasury, but a commercial bank.
Not all states require that winners be publicly identified.

Not all states draw checks on themselves. Many draw checks on commercial bank accounts.

Back to the OP's question, which, I believe centered on whether a check from the state's lottery is considered issued by a unit of state or local government. I am not sure where to draw the line here. I am certain that a check issued by the office of the state treasurer is issued by the state government, but I'm unsure about a check drawn on the state lottery commission or corporation. As a practical matter, I don't there's enough risk difference between the two to worry about.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2261325 - 10/20/21 06:48 PM Re: HOLD (Lottery Check) John Burnett
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,336
Cape Cod
Originally Posted by John Burnett
As a practical matter, I don't there's enough risk difference between the two to worry about.

Then again, that's based on what I know of my state and its Lottery Commission. I don't know about other states.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Andy_Z, John Burnett