Does Reg CC apply to checks drawn on foreign banks? If it does is their an extended period allowed to place the hold in addition to the maximum allowed by Reg CC?

(Remember to completely answer the question. Links to "Read a Reg" and citations are helpful.)

Classic Compliance answer.... "It depends"

It depends if the check is drawn on or payable through a U.S. branch of a foreign bank. To follow the regulatory bread crumb trail, we first look at the definition of a check in Regulation CC - 12 CFR 229.2

(k) "Check" means--
(1) A negotiable demand draft drawn on or payable through or at an office of a bank;
(2) A negotiable demand draft drawn on a Federal Reserve bank or a Federal Home Loan bank;
(3) A negotiable demand draft drawn on the Treasury of the United States;
(4) A demand draft drawn on a state government or unit of general local government that is not payable through or at a bank;
(5) A United States Postal Service money order; or
(6) A traveler's check drawn on or payable through or at a bank.
Note: The term "check" does not include a noncash item or an item payable in a medium other than United States money. A draft may be a "check" even though it is described on its face by another term, such as "money order." For purposes of subparts C and D, and in connection therewith, subpart A, of this part, the term "check" also includes a demand draft of the type described above that is nonnegotiable.
(7) The term check includes an original check and a substitute check.

Okay - so a check has to be payable through a bank, so now we take a look at the definition for "Bank" and we see that it does not include foreign banks:

(e) "Bank" means--
(1) An "insured bank" as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) or a bank that is eligible to apply to become an insured bank under section 5 of that Act (12 U.S.C. 1815);
(2) A "mutual savings bank" as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);
(3) A "savings bank" as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);
(4) An "insured credit union" as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752) or a credit union that is eligible to make application to become an insured credit union under section 201 of that Act (12 U.S.C. 1781);
(5) A "member" as defined in section 2 of the Federal Home Loan Bank Act (12 U.S.C. 1422);
(6) A savings association as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) that is an insured depository institution as defined in section 3 of that Act (12 U.S.C. 1813(c)(2)) or that is eligible to apply to become an insured depository institution under section 5 of that Act (12 U.S.C. 1815); or
(7) An "agency" or a "branch" of a "foreign bank" as defined in section 1(b) of the International Banking Act (12 U.S.C. 3101).
For purposes of subparts C and D of this part and, in connection therewith, this subpart A, the term bank also includes any person engaged in the business of banking, as well as a Federal Reserve bank, a Federal Home Loan bank, and a state or unit of general local government to the extent that the state or unit of general local government acts as a paying bank. Unless otherwise specified, the term "bank" includes all of a bank's offices in the United States, but not offices located outside the United States.
Note: For purposes of subpart D of this part and, in connection therewith, this subpart A, bank also includes the Treasury of the United States or the United States Postal Service to the extent that the Treasury or the Postal Service acts as a paying bank.

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But we're not done yet, because we still need to look at the commentary for these definitions to be sure we have any clarifications that the regulators intended. There is a lot of stuff in the Commentary that is not germane to this questions, so I'll take the liberty of editing:

First - the Commentary on the definition of "check":

1. Check is defined in section 602(7) of the EFA Act as a negotiable demand draft drawn on or payable through an office of a depository institution located in the United States, excluding noncash items. The regulation includes six categories of instruments within the definition of check.
2. The first category is negotiable demand drafts drawn on, or payable through or at, an office of a bank. As the definition of bank includes only offices located in the United States, this category is limited to checks drawn on, or payable through or at, a banking office located in the United States.
10. The definition of check does not include an instrument payable in a foreign currency (i.e., other than in United States money as defined in 31 U.S.C. 5101)

And now the Commentary for the definition of "Bank":

1. The Act uses the term depository institution, which it defines by reference to section 19(b)(1)(A)(i) through (vi) of the Federal Reserve Act (12 U.S.C. 461(b)(1)(A)(i) through (vi)). This regulation uses the term bank, a term that conforms to the usage the Board has previously adopted in Regulation J. Bank is also used in articles 4 and 4A of the Uniform Commercial Code.
2. Bank is defined to include depository institutions, such as commercial banks, savings banks, savings and loan associations, and credit unions as defined in the EFA Act, and U.S. branches and agencies of foreign banks. For purposes of subpart B, the term does not include corporations organized under section 25A of the Federal Reserve Act, 12 U.S.C. 611--631 (Edge corporations) or corporations having an agreement or undertaking with the Board under section 25 of the Federal Reserve Act, 12 U.S.C. 601--604a (agreement corporations).

3. Unless otherwise specified, the term bank includes all of a bank's offices in the United States. The regulation does not cover foreign offices of U.S. banks.

Okay - so a check payable in U.S. currency drawn on a branch of a foreign bank branch that is located in the U.S. is subject to Reg CC just like any other check.

A check drawn on a branch located outside of the U.S - regardless if the bank is a U.S. Bank or foreign bank - is NOT subject to Reg CC and you can place as long a hold as you want on it.