If our institution decided to use the option $400 Rule, can we do it on a case by case basis with an exception hold? Do we have to disclose it anywhere that we may choose to use the rule? Thanks for your help

I would think that you would have to have some version of this model disclosure language in the funds availablity policy you give to customers; if not, I don't believe you can invoke that option. I'm not sure if it can be 'combined' with an exception hold, so I'd rely on some feedback from one of the gurus here.

C-10--Cash Withdrawal Limitation

Cash Withdrawal Limitation

We place certain limitations on withdrawals in cash. In general, $100 of a deposit is available for withdrawal in cash on the first business day after the day of deposit. In addition, a total of $400 of other funds becoming available on a given day is available for withdrawal in cash at or after (time no later than 5:00 p.m.) on that day. Any remaining funds will be available for withdrawal in cash on the following business day.