– Most Restrictive Order
New Account – §229.13(a)
- Does Account Qualify for “New Account Hold? (First checking account – consumer or business open for 30 calendar days or less).
- If account qualifies, place NEW ACCOUNT hold for reasonsable time period (typically 9 business days) on full deposit for non-official checks. ($200 rule does not appy)
- If account qualifiies and Official Check is deposited, place NEW ACCOUNT hold for 9 business days on all but first $5,000 of deposited checks.
- If account does not qualify for New Account hold, continue to next step.
Redeposit – §229.13(c)
•Does the deposit include a previously returned deposit item (returned for reason other than for
endorsement or post date)?
•If previously returned item is deposited, place EXCEPTION HOLD for REDEPOSITED Check for 7
business days on full amount of deposited checks. ($200 rule does not apply)
•If transaction does not include a redeposited check, continue to next step.
Repeat Overdrafts §229.13(d)
- Has the account been repeatedly overdrawn or would have been repeatedly overdrawn had the checks been paid (6 banking days or more in previous six months or 2 banking days or more in previous six months in amount of $5,000 or more)
- If account has repeat overdrafts, place EXCEPTION HOLD for REPEAT OVERDRAFT for 7 business days on full amount of deposited checks. ($200 rule does not apply)
- If customer is not a repeat overdrafter, continue to next step.
Reasonable Cause §229.13(e)
- Is there reason to doubt collectibility of deposit item (paying bank indicates it won’t pay, check is altered, stale dated more than six months, post dated)?
- Cannot place hold just because type of check (credit card advance, insurance check, etc.)
- If reason to doubt collectibility exists, place EXCEPTION HOLD for REASON TO DOUBT
- COLLECTIBILITY for 7 business days on full amount of deposited checks. ($200 rule does not apply)
- Document reason bank doubts collectibility on internal forms.
- If check is paid, refund any NSF/OD fees assocaited with hold.
- If no reason to doubt collectibility, continue to next step.
Emergency Conditions §229.13(f)
- Is the bank unable to make funds available due to emergency conditions (computer malfunction, natural disaster, war, etc.)?
- If emergency exists, place EXCEPTION HOLD for EMERGENCY CONDITIONS for 7 business days on full amount of deposited checks (or a reasonable period after emergency has ceased if longer than 7 business days after date of deposit). ($200 rule does not apply)
- If not, continue to next step.
Large Deposit §229.13(b)
- Does the deposit include checks totaling more than $5,000?
- If yes, place LARGE DEPOSIT HOLD on amount EXCEEDING $5,000 of deposited checks for 7 business days
- If no, continue to next step.
NOTE: Case-by-case hold may be placed for $4,800 for two business days on first $5,000. The first $200 must be made available the next business day.
Case-by-Case §229.10(c)
- Must include this option in Funds Availability Policy to use.
- May be used for any reason (hold amount under $5,000 for large deposit hold, want to verify funds, unable to use any of the reasons above)
- Must make first $200 of checks deposited available next business day ($200 total – not per check) Place CASE-BY-CASE HOLD for all but $200 of checks deposited for 2 business days.
