Answer:
The section you cite might readily convince a layman that you may refuse to accept a check for deposit. However, the piece of legal architecture that is truly missing is any suggestion under the law that you must accept an item offered for deposit. You don't need to offer any justification for a refusal to accept an item for deposit. The phrase from Reg CC did nothing more than acknowledge the right, it certainly did not create it.
First published on BankersOnline.com 11/27/06