We have one customer acccount. 2 deposits About 30 checks each. This customer is kiting, closing accounts and we are placing holds on all their deposited checks local and non-local. Do we have to put a reason other than doubt collectibiltiy. Please help me Quick!

You should be fine with that if I'm understanding your question completely...which I think I am. You have a legitimate reason to doubt collectability.

We have had several kiting instances in the last two years. We have used Reason to Doubt Collectibility on all SARs filed and the OTS examiners did not have a problem with them.

Thanks for your promptness, it nice to have back up when you need it!

Another question...A customer deposits a large local check less $200 cash back. Do we put the hold on the amount of the check or the amount of the deposit less the cash back. I am fairly new at Reg CC and can use all the help I can get!

The hold may be placed only on the amount of the check deposited in excess of $5,000. The first $5,000 must be made available in accordance with your normal availability schedule.

That depends on your reason. You only have to give $100 availability with the exception of the large deposit reason. Then you have to give $5,000 availability. If they have the funds in the account it looks like you should be able to hold the amount of the check less $100.

If they took $200 cash back at the time of deposit, you don't have to apply the $100 rule (since it's already been satisfied).

Is this a trick question... The answer would be - neither - The hold should not be placed on the entire check or the deposit less $200 (you would be giving $400 avail). It should be on the entire deposit amount - which is already less the $200.

My question - If you can place a hold on funds that offset transit checks cashed, couldn't you, in this case, place a hold on the deposit + $100?

CC will allow you to provide one disclosure notice to the depositor which will cover all the subsequent checks which are deposited. I do not recall the exact citation section, but this provides a simplification of the notice requirement. Especially if you intend on placing a hold on all deposits in the future.

Whoa!

The "single notice" rule only applies (for consumer accounts) to chronic overdrafters. For business accounts, it applies to chronic ODs, large deposits, and redeposited checks.

Reference §229.13(g)