Regulation CC requires that financial institutions include a notice of funds availability on the front of all pre-printed deposit slips. The notice need state only that deposits may not be available for immediate withdrawal. The notice is required only on deposit slips that are preprinted with the customer's name and account number and furnished by your institution in response to a customer's order. Banks can hold deposit check case by case basis. Most institutions make check available next business day. Those institutions that do this can still apply a case-by-case hold to items without any specific reason for doing so. In this type of case-by-case hold, the date the funds must be available depends on whether the items are a local or a non-local item. For local items with a case-by-case hold, the item must be available on the second business day following day of deposit. For a non-local item under a case-by-case hold, the funds must be available by the fifth business day after the day of deposit.
To hold the funds for a longer period of time than the case-by-case hold will allow, you must have a legitimate exception hold reason. Under an exception hold, a local item does not have to be made available until the seventh business day following the day of deposit. A non-local item does not have to be available until the eleventh business day following the day of deposit. If your deposit does not meet any of these criteria, you are limited to the two day and five day case-by-case holds for the deposit, unless you refuse the items for deposit or require them to be deposited into a non-transaction account where Regulation CC does not apply.
General CC rule
Large deposits (greater than $5,000)--Any amount exceeding $5,000 may be held. Your institution must make the first $5,000 of the deposit available for withdrawal according to your availability policy and the remainder within the "reasonable" time frames discussed above.
- Redeposited checks--May be held unless the check was returned because an endorsement was missing or because the check was postdated. In such a case, if the deficiency has been corrected, the check may not be held as a redeposited check.
- Deposits to accounts that are repeatedly overdrawn--An account may be considered repeatedly overdrawn and items may be held if
- · Reasonable cause to doubt the collectability of a check--Doubtful collectability may exist for postdated checks, checks dated more than six months earlier, and checks that the paying institution has said it will not honor. The general criterion for doubting collectability is "the existence of facts that would cause a well-grounded belief in the mind of a reasonable person" that the check is uncollectible. The reason for your belief that the check is uncollectible must be included in your notice to the customer.
- On six or more banking days during the previous six months the account had a negative balance, or would have had a negative balance had checks and charges been paid, or
- On two or more banking days during the previous six months the account balance was negative in the amount of $5,000 or more, or would have been had checks and charges been paid.
For more information see Expedited Funds Availability Act