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#574319 - 06/26/06 08:44 PM
HELP! Can we refuse to cash a large check?
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Diamond Poster
Joined: May 2006
Posts: 1,168
Texas
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We have a non-depositor wanting to cash a $40,000 on-us check in the lobby. Are we obligated to cash this? This would put is in a pinch for cash on hand. Can someone recite a Reg that would allow us to do this? I checked our depository agreement and it only references a 7 day written notice on interest-bearing accounts.
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Work less, play more.....why not????
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#574320 - 06/26/06 08:50 PM
Re: HELP! Can we refuse to cash a large check?
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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If you haven't got the cash, you haven't got it. You might suggest giving cash for part of the check and another check for the balance.
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John S. Burnett BankersOnline.com Fighting for Compliance since 1976 Bankers' Threads User #8
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#574323 - 06/26/06 09:53 PM
Re: HELP! Can we refuse to cash a large check?
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Diamond Poster
Joined: May 2006
Posts: 1,168
Texas
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For future reference, since the person who wanted to cash the check is NOT our customer, would we be in violation of any Reg if we refused to cash any portion of the check?
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Work less, play more.....why not????
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#574325 - 06/27/06 05:03 PM
Re: HELP! Can we refuse to cash a large check?
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100 Club
Joined: Jul 2005
Posts: 191
Kentucky
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Just to add to Kaybee's answer, if you simply refused to cash the check at all, then your customer could claim wrongful dishonor if those funds are available in their account. A demand deposit account is just that, and the check drawn from your customer's account is a demand for that money made by your customer.
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The above is my opinion, and is frequently valued at USD 2ยข or less.
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#574326 - 06/30/06 07:38 PM
Re: HELP! Can we refuse to cash a large check?
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100 Club
Joined: Feb 2003
Posts: 138
Iowa
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I thought there was no legal obligation to "cash" a check. Legally, if the item is presented through in-clearings and provided there are sufficient funds and no stops/holds, a financial institution has to pay the item, but I didn't think a financial institution was obligated to cash a check.
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Opinions are my own, not those of my employer, and should not be construed as legal advice.
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#574327 - 06/30/06 08:03 PM
Re: HELP! Can we refuse to cash a large check?
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Power Poster
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
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Search your state code for "wrongful dishonor".
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#574328 - 06/30/06 09:05 PM
Re: HELP! Can we refuse to cash a large check?
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Diamond Poster
Joined: Jun 2002
Posts: 1,044
The banana bin
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Rori- let me ask you this: What's the difference between having the item presented in your inclearings vs. the item being cashed? With the exception of how the funds leave the bank...the funds still leave the bank.
You can't refuse to cash a check simply because of the amount if it is a DDA account. You cash the check, complete a CTR if necessary. And if necessary: count the bills in private with another witness and have someone escort the individual to their car (off the property).
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My opinions are definately my own. I could be wrong. But I don't think so.
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#574329 - 06/30/06 09:29 PM
Re: HELP! Can we refuse to cash a large check?
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Platinum Poster
Joined: Jul 2001
Posts: 708
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Being a former branch manager, I could certainly refuse to cash a $40,000 or whatever amount check for a non-customer if it would deplete my cash reserves in a way that I could not serve the bank's customers. Bank customer's ALWAYS come first. If it's a non-customer cashing an on-us check, they will be offered a cashiers check and nothing else if I don't have the cash to give them. Quote me a reg that says we have to give a person cash. Also, they are never getting an escort to their car either. If they want the cash(and we have it), they are taking the risk once the leave the bank lobby. I am not putting my employees in possible harms way for a non-customer!!!
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#574330 - 06/30/06 11:28 PM
Re: HELP! Can we refuse to cash a large check?
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Power Poster
Joined: Nov 2004
Posts: 5,925
So Cal
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I agree with BSA guy. I would do the same thing when I was a branch manager if we didn't have the cash on hand.
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#574332 - 07/05/06 04:50 PM
Re: HELP! Can we refuse to cash a large check?
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Diamond Poster
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
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Make a note to include a cash transaction limitation in the next revision to your Deposit Account Agreement. Then your customer has agreed to it ahead of time.
Al
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Al Miller, CRCM Opinions expressed are my own and not necessarily shared by my employer.
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