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Using "New Account" Reason to Place Exception Hold

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Question: 
A customer opened a new transaction checking account on 8/17/11. On 9/2/11 the customer deposited a not on-us Official Check in the amount of $4000.00. Is the bank allowed to place an exception hold on this deposit using the New Account reason?
Answer: 

For mandatory next business day items as described in Sec. 229.10(c)(1) (i) through (v) and Sec. 229.10(c)(2) of Reg CC you are required to make the first $5,000 available the next business day. In your example the Cashier's or Teller's check is below this threshold so you could not apply a new account hold assuming the deposit was made in person to an account of the payee.

First published on BankersOnline.com 3/5/12

First published on 03/05/2012

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