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Case by Case Hold on 50,000 Cashier's Check

If a customer deposits a cashier's check for $50,000 and the branch wanted to place a case by case hold, should the first $5000 still be made available and the remaining $45,000 held for two business days?

Answer by Ken Golliher: It would be a large dollar exception, not a case by case, hold. It would just be for a period shorter than allowed by the regulation.

Its purpose would be beyond my imaginings. The primary reason to put a hold on a cashier's check is that you doubt its authenticity. This hold isn't long enough to help you if it's counterfeit. All it is capable of doing is annoying the customer.


Answer by John Burnett: Case by case holds cannot be placed on next-day items. A case-by-case hold is one that applies to non-next-day checks that a bank normally gives next-day availability. It simply imposes the section 229.12 availability limits (second business day availability) on the amount of those checks that exceeds the first $200.

First published on 9/24/12

First published on 09/24/2012

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