Do Reg CC hold rules apply to a check payable to customer and Bank (insur co check for car repairs). I have a branch that accepted the check for deposit and put a 6-month hold on it. I don't believe they can do this. Any help appreciated. Thanks.

You're correct. They can't do this. Yes, the Reg CC rules apply.

The term of the hold is based on the reason for the hold. If the hold is for "doubt collectibility", you can place the hold for as long as you want until the check actually clears. At that point, the funds are available. Other than that, I would follow Reg. CC to a T.

Complianceman -- "Doubt collectibility" holds are considered reasonable if the funds are made available on the 7th business day or 11th business day following the banking day of deposit (local checks 7 days, others 11 days). Although the closing sentence of section 229.13 states that a bank may hold a deposit longer, the bank has to be able to demonstrate how it is that the longer hold period is reasonable.

I cannot recommend with a straight face that any banker seriously consider placing arbitrary holds in excess of the Reg CC limits.

Thanks for your help.