Reg CC split deposits and holds

Posted By: CARM9

Reg CC split deposits and holds - 07/07/11 08:02 PM

If a client deposits a local check for $1,000.00 and receives $500.00 back, if an extended hold is placed on the check, should the hold notice reflect the net amount of $500.00 or the entire check amount of $1,000.00. If the client already has cleared funds in their account wouldn't they be drawing on these funds and the entire amount of the check be held? Conversely, if they do not have sufficient funds then the bank has already gone beyond the requirements for Reg CC by giving the client access to these funds and their net available would be a negative amount if we place a hold for the entire check amount?
Posted By: rachelchri

Re: Reg CC split deposits and holds - 07/12/11 01:39 PM

I'm not entirely sure what your hold notices look like, but the one we use at our Institution have both the "Amount of Check" and also wording that states "We are delaying the availability of $__________ from this deposit."

IMO I would put $1,000.00 in the "amount of check" and $500.00 in the delayed availability portion.