When the bank has a large check ($7,299) and we have reasonable cause to doubt collectability, the bank does not have to provide the first $200. Can the bank hold the entire dep for 7 business days (using reasonable cause hold) or does the 1st $5,000 have to be provided within 2 business days?

The large deposit hold does not apply if you have reasonable cause to doubt collectibility. You may hold the entire amount until the 7th business day.

That's what I thought. Thanks for confirming.

Why would you accept a large item if you have a reasonable cause to doubt collectibility? Send it for collection.

Also - make sure you document the reasonable cause for future examinations.

I'm all for sending it for collection. Mgmt has their own ideas.

Well, if you invoke a reasonable cause, it has to be reasonable. Doesn't sound like this is a forte of management