My father gave my brother and myself a substantial sum of money. My father and I live in New York. My brother lives in Arizona and has an account with a national bank that has branches in both Arizona and New York. To avoid having the check lost in the mail, my brother in Arizona sent a personal deposit slip (with his name, address, and account number pre-printed on it), which we used to deposit the check in his account at a New York branch. The bank placed a twelve day hold on the deposit. Is a hold that long allowed?
Even though the check was deposited at a branch of the bank it was drawn on, the bank is permitted to treat it as a non-local check if the branches are in different states and in different check processing regions of the country (which they would be). The funds from such a check would have to be made available by the eleventh business day following the banking day of the deposit.
Business days are defined in the regulation as weekdays that are not federal holidays. The eleventh business day would be just over two weeks, assuming no holidays intervened. That's fifteen calendar days at minimum, and if the deposit is made on a Friday, it's seventeen days. It appears that the delay in availability was within the limits of the regulation.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Even though the check was deposited at a branch of the bank it was drawn on, the bank is permitted to treat it as a non-local check if the branches are in different states and in different check processing regions of the country (which they would be). The funds from such a check would have to be made available by the eleventh business day following the banking day of the deposit. 