I have been presented with the question - Can we extend the new account exception hold period? This is a hypothetical question at this point - so I will just pick from 30 to 45 days. I can find nothing that would allow us to modify the definition of what a new account is. Therefore, 30 days is it. Is anyone aware of the ability to extend this?

To bring my research to full circle, I am assuming that penalties outlined in 229.21 would be the guidance I should refer to for non-compliance?

Thank you!

The regulation defines what is considered a new account. You cannot modify the definition.

229.13(a)(2) An account is considered a new account during the first 30 calendar days after the account is established. An account is not considered a new account if each customer on the account has had, within 30 calendar days before the account is established, another account at the depositary bank for at least 30 calendar days.

Thank you!

You can change the number of days you will hold "all other checks" deposited to a new account, but you can't change the number of days you hold a deposit of next-day items beyond the limit in the regulation.

As I understood the question, they were asking if they could change the number of days they can consider an account as "new."
I agree that if the question is, "Can we hold checks for 45 days deposited while the account is considered 'new'?" then as John points out, that you can do.

Here's another question on the new account hold variations. If the bank wanted to treat all deposits like existing accounts and place a Large Deposit hold instead of a new account hold, would this work without scrutiny? A new account with say a cashier's check for $20,000 would require the $5,525 to be made available on the first business day following deposit. If we used a large item hold exception we would make $225 available the day after deposit, $5300 available the second day after deposit and the remainder seven days after deposit.

A cashier's check is a next-day item.

Large deposit holds are still allowed on typically next day items.

Yes they are, but Timeline's scenario included a case-by-case hold combined with an exception hold. Case-by-case holds are not permitted on next day items so the $225 next day and $5,300 second day availability on a cashier's check would violate Regulation CC.

Thanks Brian. That was my point.

If you decide to do a large deposit hold rather than a new account hold, be sure you provide a notice of the hold. But why would you choose to use the large deposit hold if it gives the customer full availability two business days sooner?

Right now, until the policy is changed, new accounts without the next day avail. items, have access even sooner. Some holdover no one has challenged until now.