Skip to content

Notice of Delayed Availability

Answered by: 

Is a Notice of Delayed Availability form required to be mailed to customers who deposit local checks in excess of $5,525 or is it only required if a statutory exception hold is invoked or a case-by-case hold is placed? In other words, if a local check deposit of $6,000 was done at the ATM and the funds are being held $225 (first day) $5,300 (second day) $475 (7 days) would the customer need to be mailed a form?

Although your bank's Funds Availability Policy disclosures given at account opening may include wording to indicate that you may place a case-by-case or exception hold, when you do place a hold that will delay customer availability past your normal availability (which could be same-day, next-day or $225 next-day and 2d day for balance of deposit), you need to provide a customer notice. In other words, at account opening, you explain what your normal availability policy (applicable to most deposited checks) is, and if you delay availability on a deposit longer than your "normal" time period, you have to provide a written notice to the depositor (the "depositor" is the individual making the deposit, if made in person, and the account holder otherwise).

In your hypothetical, you would place a large-deposit exception hold on the excess over $5,525, delaying availability of $475 to the seventh business day following the banking day of deposit. That requires a written notice to the depositor at the time the deposit is made in person (which won't be possible for an ATM transaction), or placed in the mail or delivered as soon as practicable, but no later than the first business day following the day the facts (supporting the decision to place the hold) become known to the depositary bank, or the deposit is made, whichever is later.

First published on 01/24/2021

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics