Can a Bank NOT release the first $225.00 on funds that are deposited from Repeat Overdrafters, New Accounts, Doubting Collectability or redeposited items?

Repeat OD - (d) Repeated overdrafts. If any account or combination of accounts of a depositary bank's customer has been repeatedly overdrawn, then for a period of six months after the last such overdraft, Secs. 229.10(c) and 229.12 do not apply to any of the accounts.

Reasonable Cause - (e) Reasonable cause to doubt collectibility--(1) In general. Sections 229.10(c) and 229.12 do not apply to a check deposited in an account at a depositary bank if the depositary bank has reasonable cause to believe that the check is uncollectible from the paying bank.

Redeposited Check - (c) Redeposited checks. Sections 229.10(c) and 229.12 do not apply to a check that has been returned unpaid and redeposited by the customer or the depositary bank.

New Accounts - You may hold the full amount unless the check is a Treasury Check, Postal Money Order, A check drawn on a Federal Reserve Bank or Federal Home Loan Bank, State/Local Government, or Cashier's Check. See 229(c)(1)(i) - (v) for more details.

229.10 and 229.12 provides the availability schedule. 229.13 outlines the exceptions.

Anon, with all the new technology and potential for fraud, the bank should probably be doing a risk analysis on opening up questionable accounts, or even keeping the bad ones.

The requirement to make $225 available the next business day only applies to case by case holds, not exception holds.

lol. And that is a much simpler and more direct answer than the one I gave.