#2269986 - 05/03/22 05:23 PM
Re: Cashier's Check and Reg CC New Account
BrianC
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Anonymous
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Don't forget, you can place a "Case By Case" hold on the check. No, you can't. Case by case holds cannot be placed on mandatory next day items such as cashier's checks. REGARDLESS, you can FIND a reason to hold ANY check. If you think that a brand new customer is opening a brand new checking account with a $500,000.00 Cashier's Check and getting $494,500.00 available in a few days, you're nuts.
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#2269987 - 05/03/22 05:43 PM
Re: Cashier's Check and Reg CC New Account
Anonymous
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Platinum Poster
Joined: Nov 2013
Posts: 549
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Don't forget, you can place a "Case By Case" hold on the check. No, you can't. Case by case holds cannot be placed on mandatory next day items such as cashier's checks. REGARDLESS, you can FIND a reason to hold ANY check. If you think that a brand new customer is opening a brand new checking account with a $500,000.00 Cashier's Check and getting $494,500.00 available in a few days, you're nuts. You're still not quite right. If you're hunting and inventing reasons to hold a check you're violating a federal regulation - period. However, if you have a brand new customer that comes in a $500k cashier's check that you don't trust you can refuse the check altogether.
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#2269991 - 05/03/22 05:54 PM
Re: Cashier's Check and Reg CC New Account
Anonymous
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Power Poster
Joined: Nov 2004
Posts: 6,694
Illinois
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If you think that a brand new customer is opening a brand new checking account with a $500,000.00 Cashier's Check and getting $494,500.00 available in a few days, you're nuts. I think the regulation says that the customer would have $5,525 available the first business day and the remainder available by the ninth business day using a new account hold exception. If I am that concerned about the check or the customer, I refuse to open the account. I donate of my time freely to support the compliance community. Personal attacks will not be tolerated.
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#2269999 - 05/03/22 07:23 PM
Re: Cashier's Check and Reg CC New Account
RVFlyboy
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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Brian is correct - you cannot place a case-by-case hold on mandatory next day items. However, if another exception hold reason applies - for example, frequent overdrafter, reasonable cause to doubt collectibility, etc. - then you can hold the entire amount of the item that normally requires next day availability for up to 7 business days. Of course, if this is a new account, it's unlikely you'll have a "frequently overdrawn" customer situation. If you do, you'd probably be closing the account and, as suggested in an earlier comment, refusing the cashier's check deposit.
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#2280559 - 02/01/23 09:10 PM
Re: Cashier's Check and Reg CC New Account
BrianC
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Platinum Poster
Joined: Feb 2003
Posts: 874
Big Sky Country
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Don't forget, you can place a "Case By Case" hold on the check. No, you can't. Case by case holds cannot be placed on mandatory next day items such as cashier's checks. I have a clarifying question... A mandatory next-day item would NOT include certain checks (US Treasury, postal money order, cashiers, on-us, etc.) that are NOT payable to the account holder, right? 229.10(c)(1). If so, is it correct that such a third-party check could be placed under a case-by-case hold, if the bank wishes to accept it for deposit in the first place? (Disclaimer, I think such a decision isn't so great in the first place. Further disclaimer, I think CBC holds are pretty worthless. But if a bank is facing such an issue, I'd like to debate it will dance on the head of a pin. )
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#2280563 - 02/01/23 10:59 PM
Re: Cashier's Check and Reg CC New Account
John Burnett
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Platinum Poster
Joined: Feb 2003
Posts: 874
Big Sky Country
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Oh for pity's sake, I need to go one step further, please. If such a third-party check were being deposited into a new account, it:
- Would not be considered a next-day item, because of 229.10(c)(1); AND - Would not be subject to 220.12 either, because of 229.13(a)(iii)
Therefore, a "certain check" 1) not payable to the account holder 2) being deposited into a new account could be held, without any notice, for the entire check amount, for the duration specified in the bank's Funds Availability Policy for new accounts. Right?
That's a pretty darn narrow set of parameters, but geez louise, I can see it happening.
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