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Delayed Large Item Hold

Answered by: 
John Burnett

Question: 
It was discovered two days after initial deposit date that a teller did not place a large item exception hold requested by the branch manager. Can we place a hold for the dollar amount that would have been held for 7 days from the date of deposit and mail the customer the form using large item exception hold and note the reason for the delay on the hold notice? What is a best practice for this type of situation?
Answer: 

You can place the hold, but it will have to make the funds available the same day they would have been if the hold had been timely placed. If you have lose two days, you have to make the funds available no later than the fifth banking day after you place the hold. And don't forget to send the depositor a notice of the hold.

This will not "cure" the teller's mistake, but it may provide the bank with the protection it would have had if the hold had been placed correctly.

First published on 12/10/2023

Filed under: 
Compliance
Filed under compliance as: 
Reg. CC

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