Limitations on Next Day Availability

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Question:

After researching Reg CC, I've concluded that we are only required to provide next day availability on cashier's checks that are drawn on our bank. Is that correct? Can we place holds on cashier's checks drawn on other banks using the case-by-case hold guidelines for local and non-local checks?

Answer:

You may have misread the regulation. All cashier's checks drawn on U.S. banks are next-day items, if deposited in person to an account of the payee. You may require that a special deposit ticket be used to identify the deposit as including a cashier's check.

If the check qualifies but is not deposited in person with an employee of the bank, it may be treated as a second-day item.

Case-by-case holds are not available for deposited cashier's checks. You may, however, use an exception hold if you do so correctly.

First published on BankersOnline.com 06/7/04