Am I reading Reg CC correctly that I CAN place an 11 day exception hold on an "on-us" check for reasonable cause (repeated overdraft)?

Yes, you could use the escessive overdraft exception, since on-us checks are include in .10(c). However, it is most likely a local check - so it would be seven days. The question is - why would you want to?? You know if the check is good or not and if the customer is that bad that you don't want them to have available funds that badly - why not just close their account??

I agree with RLCarey, I would just close their account!

As I recall the "reasonable" time frame we can add to the availability of an on-us check is one day.

I think you're right on that, Brenda.

Also, a question for the original poster- which account is repeatedly overdrawn? The maker's or the depositor's?

Great technical catch Brenda

I guess since I have never contemplated an extended hold on a on-us check I had forgotten all about that little caveat in .13(h)(4).

the depositor's was the one overdrawn. We suspected kiting on the account. I had forgotten about the 1 day extension as well.