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#83662 - 05/29/03 11:47 PM Availability of Funds
Stephen Offline
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If a customer asks that the personal check they are depositing be deposited as cash, must the funds be made available the next business day regardless of the type of check it is? For example, personal out of state checks are usually subject to a five day hold. If the depositor say deposit this check as cash, must it be made available the next day? A Lawyer told me according to UCC 3 and 4 the check cann't have a hold put on it.

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#83663 - 05/30/03 12:00 AM Re: Availability of Funds
Anonymous
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How can you deposit a check as cash?

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#83664 - 05/30/03 12:07 AM Re: Availability of Funds
HRH Dawnie Offline
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Anchorage Alaska
Quote:

A Lawyer told me according to UCC 3 and 4 the check cann't have a hold put on it.




Was he drinking? Why then couldn't we call all deposited items "cash" and avoid holds?

Now if you cashed the check for the client, then deposited the funds into their account, it would of course be "cash" but there needs to be "cash" changing hands for this to be the case. I'd love to call a personal check from Nigeria "cash" and receive credit for it...but are you going to take that?
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#83665 - 05/30/03 02:00 AM Re: Availability of Funds
Princess Romeo Offline

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Even if you "cash" the check, you can still place a hold for the amount of the check (less $100) against whatever other funds are on deposit. Essentially what you are doing then, is to allow a withdrawal of cash from the existing funds, and then placing a hold on the check being deposited.

Depositing the check as cash. Good one! I've got a bridge in Brooklyn I'll sell you.
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#83666 - 05/30/03 08:39 AM Re: Availability of Funds
Elwood P. Dowd Offline
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Stephen,
This really does not sound like a question a banker would ask, but it is indisputable that at least two people have given you some silly advice. 1) A bank will not let you classify a check as cash just because you request it. 2) Neither article 3 or 4 of the UCC have anything to do with holds on deposited checks.
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#83667 - 05/30/03 12:42 PM Re: Availability of Funds
Stephen Offline
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Joined: May 2003
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Quote:

Stephen,
This really does not sound like a question a banker would ask, but it is indisputable that at least two people have given you some silly advice. 1) A bank will not let you classify a check as cash just because you request it. 2) Neither article 3 or 4 of the UCC have anything to do with holds on deposited checks.




The person who told me this is a law student in his final year. They are studying this topic and that's what New England School of law is teaching them at present. I'll get more details soon.

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#83668 - 05/30/03 12:46 PM Re: Availability of Funds
Andy_Z Online
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Its Friday. I wonder if this lawyer is or will work for HUD?
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#83669 - 05/30/03 12:55 PM Re: Availability of Funds
Don_Narup Offline

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Las Vegas Nevada
Whats the class thats teaching this?

"Creative Income Generation"
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#83670 - 05/30/03 04:19 PM Re: Availability of Funds
HRH Dawnie Offline
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Anchorage Alaska
Student Lawyers...I think that could be even worse than Student Doctors....::shuddering:: If we cut right here...and deposit this as cash....
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#83671 - 05/30/03 04:26 PM Re: Availability of Funds
1111 Offline
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1111
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Quote:

The person who told me this is a law student in his final year. They are studying this topic and that's what New England School of law is teaching them at present. I'll get more details soon.




WOW, that's not good news. It's sorta like depositing dirt and saying it's cash.

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#83672 - 05/30/03 06:03 PM Re: Availability of Funds
I Wear Many Hats Offline
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the beautiful state of ME
The confusion may come over the system.... there are some teller systems out there that have as a choice "checks as cash" - this option can be used when the teller/bank wants to circumvent any universal hold options they have placed on the system. A bank where I used to have an account had this option. If I was to deposit a check drawn on another local bank, the would use 'local check' deposit to generate the appropriate local check hold, the 'transit check' deposit to generate a non-local hold and the 'checks as cash' option when I was depositing an 'on-us check'. I believe they also used that option for the deposit of Federal government checks, cashier's checks and the like. So depending on where one banks and the system used, it may show up somewhere as an option. The system we have offered such a choice but as we are a next day availabilty bank we didn't need it, and we don't set up automatic holds based on type of check deposited.

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#83673 - 05/30/03 07:20 PM Re: Availability of Funds
Stephen Offline
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Joined: May 2003
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Quote:

Student Lawyers...I think that could be even worse than Student Doctors....::shuddering:: If we cut right here...and deposit this as cash....




This is what his INSTRUCTOR at a major law school is teaching their students. I seriously doubt they choose topics of study out of thin air.

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#83674 - 05/30/03 07:46 PM Re: Availability of Funds
Stephen Offline
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Joined: May 2003
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Quote:

Quote:

The person who told me this is a law student in his final year. They are studying this topic and that's what New England School of law is teaching them at present. I'll get more details soon.




WOW, that's not good news. It's sorta like depositing dirt and saying it's cash.




Both are promises to pay. Neither are backed by anything more than a promise and an entry in a ledger. If checks are dirt so is cash. Cash is a Government promise, checks are a personal one. But being that a politician's word is gold, there's no need for concern.

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