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#574319 - 06/26/06 08:44 PM HELP! Can we refuse to cash a large check?
mck401 Offline
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Joined: May 2006
Posts: 1,168
Texas
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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#574320 - 06/26/06 08:50 PM Re: HELP! Can we refuse to cash a large check?
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
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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#574321 - 06/26/06 08:58 PM Re: HELP! Can we refuse to cash a large check?
OkieOps Offline
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OkieOps
Joined: May 2001
Posts: 752
OK
We have also asked the person to wait until we could order the money because we did not have enough on hand.

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#574322 - 06/26/06 09:51 PM Re: HELP! Can we refuse to cash a large check?
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Many banks limit the actual cash provided and give a bank check for the balance. Otherwise, the "casher" needs to give the bank an opportunity to order sufficient cash. There is no problem with this. It would be unsafe to leave that much cash lying around just in case someone wants to cash a large check.
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#574323 - 06/26/06 09:53 PM Re: HELP! Can we refuse to cash a large check?
mck401 Offline
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Joined: May 2006
Posts: 1,168
Texas
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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#574324 - 06/26/06 09:56 PM Re: HELP! Can we refuse to cash a large check?
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Posts: 21,293
Not as long as you conducted the transaction in ways several folks described above.
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#574325 - 06/27/06 05:03 PM Re: HELP! Can we refuse to cash a large check?
Banking Bard Offline
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Joined: Jul 2005
Posts: 191
Kentucky
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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#574326 - 06/30/06 07:38 PM Re: HELP! Can we refuse to cash a large check?
Mrs. Selby Offline
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Joined: Feb 2003
Posts: 138
Iowa
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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#574327 - 06/30/06 08:03 PM Re: HELP! Can we refuse to cash a large check?
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
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?
Chiquita Banana Offline
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Chiquita Banana
Joined: Jun 2002
Posts: 1,044
The banana bin
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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#574329 - 06/30/06 09:29 PM Re: HELP! Can we refuse to cash a large check?
Comply 101 Offline
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Comply 101
Joined: Jul 2001
Posts: 708
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?
GuitarDude Offline
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GuitarDude
Joined: Nov 2004
Posts: 5,925
So Cal
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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#574331 - 06/30/06 11:42 PM Re: HELP! Can we refuse to cash a large check?
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
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What else can a bank do if cashing that check depletes its cash (or they don't even have enough on hand)? Give the person what you can (without eliminating your ability to serve your customers) and give a bank check for the balance. If they want all of it at one time, they have to wait until it can be ordered.

I don't agree about not warning them about walking around with that cash or escorting them. It would still be your property they could be injured on. I don't think a judge would want to hear the defense "hey, he's not my customer". I would view that as protecting the bank, not the person who came in for the cash. Use your normal procedures for large cash situations, whatever they might be.
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Kathleen O. Blanchard, CRCM "Kaybee"
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#574332 - 07/05/06 04:50 PM Re: HELP! Can we refuse to cash a large check?
Al Miller Offline
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Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
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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