We have a situation where a customer deposits a large check into his business account. The check being deposited is an on-us check. The account the check is drawn on is not overdrawn, (therefore the teller is not alerted by the teller machine)but the account will be overdrawn once the check post. It doesn't seem practical to have the teller check the balance of all accounts prior to deposits?....Any thoughts on how you handle this situation would be appreciated. Thanks!

Here, any on-us check presented to us greater than $300 is immediatley cleared from the account it is drawn on, pending there are funds available to do so, and then journaled as cash into the deposit account of the presenter.

Thanks!

If someone wants to cash an on-us check, then funds are verified, but if an on-us check is being deposited by another customer, we accept the deposit and let the system determine at posting if funds are available. If there are not funds at time of posting, depending on customer relationship, we'd either pay into OD or charge back to the depositor. We'd never be able to verify all on-us checks in deposits, especially our business deposits.

If it was an extremely large check in a one-off deposit, we'd probably look at the maker's account and if funds were not available, we'd try to contact the maker to see if they were expecting a wire or some other deposit coming in to cover the check.

This is a gross generalization, but banks with a commercial bank heritage tend to take the deposit and wait until the next day to determine if the deposited check is good. Banks with a thrift heritage tend to proof the deposit and post the on-us checks at the window. It's by no means a hard and fast rule, though.