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Is it within compliance regs to put a hold on an out of state check on new customer?

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Question: 
Is it within compliance regs to put a hold on an out of state check on new customer?
Answer: 

You can hold a check because it is a new account, but you can't hold a check just because it is from out of state. The general rule for doubting collectibility states that there is "the existence of facts that would cause a wellgrounded belief in the mind of a reasonable person" that the check is uncollectible.

First published on BankersOnline.com 11/11/02

First published on 11/11/2002

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