Foolish question. While researching the loads of info available on Reg CC, I have seen the following scenerio and am confused why anyone would do it. In some info, it appears that a case by case hold and a large deposit exception hold are used in conjunction. For a non local check this allows the first 5,000 to be released before the 5th day. If you are putting a case by case hold, I would guess there is a valid reason for wanting to hold the funds until the 5th day. What am I missing?

See this example from the commentary:

2. The following example illustrates the operation of the large
deposit exception. If a customer deposits $2,000 in cash and a $9,000
local check on a Monday, $2,100 (the proceeds of the cash deposit and
$100 from the local check deposit) must be made available for withdrawal
on Tuesday. An additional $4,900 of the proceeds of the local check must
be available for withdrawal on Wednesday in accordance with the local
schedule, and the remaining $4,000 may be held for an additional period
of time under the large deposit exception.

The bank would be providing a case by case hold for the $4900 held if the bank has a policy of providing next day availability instead of holding all checks the maximum time allowed by law.

Thank you for clarifying