I am confusing myself on Reg CC exception hold

If we have a new account holder who makes a deposit that is less than $5,000 and the check is out of state, what is the maximum time period that we can hold?

Within 30 days of opening the new account you can hold the funds as long as you state in your funds availibility disclosure regarding holds on new accounts.

The location of the paying bank is irrelevant. What is relevant is whether the check is an otherwise "next-day" item such as a cashier's, teller's or certified check.

If the check is a next-day item, you cannot place a new account hold on it because it's for under $5,000. You can, however, place a reasonable cause to doubt collectibility hold if circumstance warrant. A better decision in such a case might be to refuse the check for deposit, and accept it only for collection (or simply refuse it altogether).

If it's not a next-day item, you can hold the entire check amount for whatever period you have disclosed in your funds availability disclosure will apply to such checks. The regulation does not restrict the duration of such new account holds for other than next-day items, but you must state in your disclosure what duration your bank will use.

Thanks for clearing that up for me!