I do understand that the $100 must be made available for withdrawal on the business day after deposit. Question: if the Bank has the reason to believe that check for $99 is fake, can the teller put case by case hold for 11 (non-local for example) days?

That is correct. A case-by-case exception hold may be placed if the bank does not believe the check will be paid. However, if you think the check is fake, why are you taking it?

If you choose to place a case by case hold, you are subject to the $100 availability. Since your check is only for $99, you can't hold those funds beyond the next day using this type of hold. Your only other option (if you allow the check to be deposited)is to qualify the item for the reasonable cause exception (invalid routing/account number, notice from paying bank the check is no good, etc). This way, the $100 availability does not apply and you can hold the funds for the full 11 days (depending on the type of check).

Don't use the phrase "case by case exception hold." There are what the industry has come to call "case by case" holds -- those placed by a bank that usually offers next day availability but on a selective basis imposes holds up the the regulatory maximum under section 229.12. And there are "exception holds" under section 229.13.

You're correct, I mistakenly used the phrase "case by case" when it should have been "exception hold". Thanks for clarifying that.

John:
Where specifically, and I mean very specfic, does it mention "case by case" holds in 226.12 or 226.13, if that is where it is. And, does it spell out the hold limits if one is implementing a "case by case" hold?? I can find references to 6 different types of exceptions, but not a reference to "case by case" issues?
Thanks, Steve

229.12(b) (local) & (c) (non-local).