Reg. CC

Posted By: HR Banker

Reg. CC - 02/03/04 01:29 PM

I have a deposit consisting of two checks, $420 & $500. The $500 check is o.k. & we don't intend to hold for it. The $420 check we do want to hold. Since the customer deposited $800 and got $120 back in cash can we place the hold for $420 or do we have to make $100 available since the hold only pertains to the one check?
Posted By: JacF

Re: Reg. CC - 02/03/04 01:45 PM

You can hold the full $420 because the $100 next-day availability is covered by the $500 check. Of course, this assumes that the $500 check is subject to holds (not a next-day item, as defined by Reg CC.)
Posted By: Anonymous

Re: Reg. CC - 02/03/04 02:02 PM

JacFSB,

1. Wouldn't the $100 availability be covered by the $120 cash back?

2. What did you mean by the sentence "Of course, this assumes that the $500 check is subject to holds (not a next-day item, as defined by Reg CC.)"?

Reg. CC is a tough one.............
Posted By: Georgia Golfer

Re: Reg. CC - 02/03/04 02:17 PM

Jac means that the $500 is not a cashiers check, US treasury, or other item that must be available the next day. There is a great Reg CC paper in the Bankers Tools section called the Basics of Funds Availability. It's really good and covers CC from front to back
Posted By: HR Banker

Re: Reg. CC - 02/03/04 02:22 PM

Thanks to everyone for their help!
Posted By: JacF

Re: Reg. CC - 02/03/04 03:09 PM

Quote:

1. Wouldn't the $100 availability be covered by the $120 cash back?


The fact that the customer received $120 back doesn't affect what you can and can't hold. Reg CC addresses the items included in the deposit, regardless of the cash back.