Definition of Case by Case Holds & Reg CC Holds

Jim Bedsole

You might start with a different terminology because case-by-case holds ARE Reg CC holds. I think you're talking about the difference between case-by-case holds and exception holds.

I generally start with talking about exception holds. There are six categories of exception holds and they are listed in 229.13. The six are: New accounts, Large deposits, Redeposited checks, Repeat overdrafters, Reasonable cause to doubt collectibility, and Emergency Conditions. All of these require some very specific criteria to come into effect, but when those criteria are met, you can generally delay availability for up to 7 business days. There are some specific nuances in some of these that could affect timing, but that's the general time period for exception holds.

Beyond that, whether case-by-case holds apply to you depends on whether your bank generally makes items available next business day. If you do not, you likely hold all items until the 2nd business day, and in that case, you would have no case-by-case holds. However, most banks do not take this approach. Most banks generally make most items available next business day (or sooner). For these banks, Reg CC still allows the bank to put in place a case-by-case hold. You don't need any reason to put a case-by-case hold in place. You just have to notify the customer when you do so that you have placed the hold and when the funds will be available. Funds subject to a case-by-case hold must be made available by the 2nd business day after receipt. With the advent of shorter time frames and the elimination of non-local items, I see fewer and fewer banks even messing with case-by-case holds as they really don't get you much protection for the work involved in placing them.