Case by Case Hold on 50,000 Cashier's Check

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Question:

If a customer deposits a cashier's check for $50,000 and the branch wanted to place a case by case hold, should the first $5000 still be made available and the remaining $45,000 held for two business days?

Answer:

Answer by Ken Golliher: It would be a large dollar exception, not a case by case, hold. It would just be for a period shorter than allowed by the regulation.

Its purpose would be beyond my imaginings. The primary reason to put a hold on a cashier's check is that you doubt its authenticity. This hold isn't long enough to help you if it's counterfeit. All it is capable of doing is annoying the customer.

Answer:

Answer by John Burnett: Case by case holds cannot be placed on next-day items. A case-by-case hold is one that applies to non-next-day checks that a bank normally gives next-day availability. It simply imposes the section 229.12 availability limits (second business day availability) on the amount of those checks that exceeds the first $200.

First published on BankersOnline.com 9/24/12