Holding a Cashier's Checks

In what cases can a bank place a hold on a cashier's check?

You can place a hold on amounts over $5,000. For example, if you have a deposit for $8,000 in the form of a CC, you can put a hold on the $3,000.

Just for arguments sake, but wouldn't holding a cashier's check defeat the purpose of getting a cashier's check unless you suspected fraud?

Who's argument - the law allows it.

If the customer meets the definition of a repeat overdrafts, you can place a hold on the cashier's check. Also, if the customer's account meets the definition of a new account, you can hold the amount over $5,000.