$200 Reg CC Change Only Apply to Local Checks?

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Question:

Does the $200 change to Reg CC apply to Local Checks only or do we also need to give $200 when we place an extended hold on a check that is for $5000 or more?

Answer:

When you place a large deposit hold, the availability of the first $5,000 must conform to Regulation CC rules. If the bank has disclosed in its account disclosures the possibility of case-by-case holds, and elects to impose a case-by-case hold in conjunction with the large deposit exception hold, the first $200 of the check would have to be available on the first business day after the day of deposit, the next $4,800 of the check on the second business day, and the balance of the check by the 7th business day.

Similarly, if the bank is not a next-day availability bank (it routinely delays availability of all but next-day items until the second business day), it would have to provide next-day availability for the first $200 of the large check, second day availability for the next $4,800, and availability for the rest of the check by the 7th business day, if it imposes a large deposit exception hold on a check over $5,000 (and the check is not a next day item).

First published on BankersOnline.com 10/31/11