Hold Liability

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Question:

What type of action could be taken against a financial institution that places a hold on a cashier's check that is less than $5,000.00? Can the employee responsible for placing the hold be held personally liable for failing to comply with Reg CC?

Answer:

Section 229.21 of Reg CC contains the provisions for civil liability with regard to compliance with the regulation requirements, including improperly holding a cashiers check. I don't believe there are specifications for individual liability, but I believe the employee could be held individually liable under FIRREA provisions if the violation was intentional.

First published on BankersOnline.com 4/09/07