For ATM deposits of state or local government checks we would like to require that that this type of check be deposited at the branch using a special deposit ticket. We would disclose this in our Funds Availability Policy. Would we be out of compliance if a state or local government check was deposited through the ATM and we place a hold for 5 days.

The Funds Availability Training Guide from Kirchman states that when state and local government checks are deposited at one of your ATMs rather than in person, the bank must make the funds available by the second business day if they are payable to the holder of the account into which they are deposited. Also, checks of any type deposited at an ATM that you do not own must be made available by the fifth business day. In another section it states that you may require a special deposit slip for state or local government checks. I'm not sure how this would affect the above requirements, we don't require special deposit slips so I'm not at all familiar with them.