[TheBank]

For an on us check deposited, I see that those funds must be available the next business day according to Reg CC. Is that the case if the account from which the on us check was written from only had a check deposited into it that had not yet cleared? In other words, can we place a hold on an on us check deposited to VSB account “A” if that check is from VSB account “B” if account “B” had a zero balance and a local check was deposited that same day to account “B”? The local check deposited to account “B” had not yet cleared and there was no case by case or large deposit hold on that check deposited to account “B”. If yes, what type of hold, and if no, should we have gone back to account “B” and placed a case by case or large deposit hold on the deposited check to account “B”?

We are trying to figure out what we can do in this situation and not violation Reg CC, but still protect the funds as much as we can.

Topic

[Kimberly Boatwright, CAMS, CRCM]

The rules do not allow for any “On-Us check” to be placed on hold. In account B that you reference, when was the deposit made (you have timing issues to consider)? Was this a new account? Would you have reasonable cause to have held the check? Was it a large check?

More details would help to see if there is a way to protect the funds. Dollar amounts, dates of the deposit, and account status (new, frequent overdrafts) will help in determing what actions can be taken to protect the funds.

NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.

THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE

[Author]

Replies