I understand the requirement to include the information/details/fact to support reasonable cause to believe a check is uncollectible as stated below in the regulation. In reviewing a hold completed by the bank, I'm questioning whether the documentation provided is sufficient. Reasonable cause reason used was noted as: "Was unable to verify account and check with Mary at ABC Bank." Based on the name of the actual bank, I doubt they verify anything. So I'm speculating our bank employee likely called the other bank, Mary answered the phone, and we asked about verifying funds/an account/check and she told us it is not their practice to do that. Is this documentation quoted above sufficient or not strong enough under the reasonable cause hold reason?

Reasonable cause to doubt collectibility -
(1) In general. Sections 229.10(c) and 229.12 do not apply to a check deposited in an account at a depositary bank if the depositary bank has reasonable cause to believe that the check is uncollectible from the paying bank. Reasonable cause to believe a check is uncollectible requires the existence of facts that would cause a well-grounded belief in the mind of a reasonable person. Such belief shall not be based on the fact that the check is of a particular class or is deposited by a particular class of persons. The reason for the bank's belief that the check is uncollectible shall be included in the notice required under paragraph (g) of this section.

You basically have no information other than the check in your hands, if that is the case.

these days, very few banks perform validation of accounts and whether checks are good or not via phone calls. Even so, I'd be hard pressed to state this is sufficient reason to doubt collectability of an item.

if you think it is not collectable, just refuse to accept if for deposit

To put this concept another way: The absence of additional information about the check does not constitute reasonable cause.

To add to what the others have said, I agree that you can't use the "reasonable cause" hold exception just because you weren't able to verify funds at another institution. If this person did get facts that would justify the hold reason, I agree with you that the description is not sufficient. In fact, it sounds to me like your team (or at least this person who placed this hold) probably needs additional training on this.

As far as a citation, the commentary isn't the most direct on the particular scenario of not being able to verify funds, but I think its clear enough that you would need factual information from the paying bank to lead you to the conclusion that a check won't be paid.

From the commentary as an example of when you can use the "reasonable cause" hold:
"b. The depositary bank may have received information from the paying bank, prior to the presentment of the check, that gives the bank reasonable cause to believe that the check is uncollectible. For example, the paying bank may have indicated that payment has been stopped on the check, or that the drawer's account does not currently have sufficient funds to honor the check. Such information may provide sufficient basis to invoke this exception. In these cases, the depositary bank could invoke the exception and disclose as the reason the exception is being invoked the fact that information from the paying bank indicates that the check may not be paid."

In addition, another part of the commentary says this:
"4. The regulation provides that the determination that a check is uncollectible shall not be based on a class of checks or persons. For example, a depositary bank cannot invoke this exception simply because the check is drawn on a paying bank in a rural area and the depositary bank knows it will not have the opportunity to learn of nonpayment of that check before funds must be made available under the availability schedules. Similarly, a depositary bank cannot invoke the reasonable cause exception based on the race or national origin of the depositor."

The bottom line is that not being able to verify with the paying bank whether a check is good or not, is not a fact that would give "reasonable cause to believe that the check is uncollectible."