Can you put a hold on an account for a continuous levy when three are not enough funds in the account initially?

What you can or can not do will be base specifically on the instructions in the levy and State law or regulation.

Would putting a hold on be a violation of Reg CC? Levies do not tell you how the transaction should be processed just to send the money.

Any hold required by another operation of law is not governed under Reg. CC. Many levies only attached money in the account at the time they are served. If you have questions regarding the proper actions that you should take, you really need to get your legal counsel involved.