Reg CC - Redeposit of Item Returned NSF

There is not a provision that gives the bank the right to redeposit an item returned for NSF. In fact, if the bank does redeposit the item on its own accord, it could be accepting liability that it doesn't realize. The holder of that check may have rights that the redeposit could jeopardize. If a customer wants the bank to automatically redeposit its deposited items that are returned, a prudent practice would be to have that customer execute a "hold harmless" agreement to the bank.

First published on BankersOnline.com 1/15/07