[TheBank]

For a large local check deposit, where the excess of $5,525 is held using the large deposit exception hold, and the first $225 is made available the next day, what type of hold complies with Reg CC for the $5,300 portion? We must make the $5,300 portion available the second day after the deposit date, but what should be disclosed as the reason for that portion of the hold, case by case, or large deposit?

[Kimberly Boatwright, CAMS, CRCM]

For case-by-case – regulations indicate:
•Must include this option in Funds Availability Policy to use.
•May be used for any reason (hold amount under $5,525 for large deposit hold,)
•Must make first $225 of checks deposited available next business day ($225 total – not per check)
•Place CASE-BY-CASE HOLD for all but $225 of checks deposited for 2 business days.

For large deposit – that would be the reason you are doing it. But from a UDAP perspective you would need a good reason that wasn’t unfair to the customer. These holds have been cited as UDAP issues for some FIs. Without clear policy and understanding for placing the hold.

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

• This reply was modified 1 year, 10 months ago by Kimberly Boatwright, CAMS, CRCM.

[Author]

Posts