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#2269941 - 05/02/22 07:51 PM Cashier's Check and Reg CC New Account
Anonymous
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If I understand correctly, placing a New Account hold on a cashier's check does not affect the entire amount, right? So a $2,500 cashier's check deposited into a new account cannot have a New Account hold, because it is less than $5,525?

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#2269943 - 05/02/22 07:58 PM Re: Cashier's Check and Reg CC New Account Anonymous
BrianC Offline
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That is correct. For mandatory next day items, you can hold the amount over $5,525 up to the ninth business day. Anything under that must be given next day availability.
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#2269944 - 05/02/22 08:06 PM Re: Cashier's Check and Reg CC New Account Anonymous
John Burnett Online
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Correct. For a new account hold on deposited "next day" checks, you make the first $5,525 of the next-day checks available by the start of business on business day one after the banking day of deposit. The rest of the "next day" check amount has to be made available by the start of business on the 9th business day after the banking day of deposit.

On-us checks are not covered by the new account hold rule, and the $225 next-day availability provision of §229.10(c)(1)(vii) and the provisions of §229.12 aren't applicable to any other checks deposited to a new account.
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#2269946 - 05/02/22 08:11 PM Re: Cashier's Check and Reg CC New Account Anonymous
Anonymous
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Thanks Brian and John!!!

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#2269949 - 05/02/22 08:55 PM Re: Cashier's Check and Reg CC New Account Anonymous
Anonymous
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Don't forget, you can place a "Case By Case" hold on the check.

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#2269957 - 05/02/22 10:21 PM Re: Cashier's Check and Reg CC New Account Anonymous
BrianC Offline
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Quote
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.
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#2269965 - 05/03/22 12:53 PM Re: Cashier's Check and Reg CC New Account Anonymous
RVFlyboy Offline
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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.
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#2269986 - 05/03/22 05:23 PM Re: Cashier's Check and Reg CC New Account BrianC
Anonymous
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Originally Posted by BrianC
Quote
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
burkemi Offline
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Joined: Nov 2013
Posts: 522
Originally Posted by Anonymous
Originally Posted by BrianC
Quote
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
BrianC Offline
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BrianC
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Illinois
Quote
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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Originally Posted by RVFlyboy
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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