Answer:
If your customer uses any special deposit ticket that your bank requires as a condition of getting next day availability for a cashier's check and deposits the check in person with an employee of the bank to an account of a payee on the check, the customer would ordinarily get next day access to his funds (Reg CC, Section 229.10(c)(1)(v)). However, if the bank elects to impose an exception under Section 229.13(b) - the large deposits exception) and provides the depositor with appropriate notice under Section 229.13(g), the first $5,000 of the cashier's check will still be available on the first business day following the banking day of deposit. The remaining $5,000 of the check will be available on the seventh (local check) or eleventh (non local check) business day following the banking day of deposit. The exception doesn't simply take place. The bank representative has to actively decide to use the hold.
First published on BankersOnline.com 1/05/09
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