For detailed procedures, see Placing a Hold.
Overview
Regulation CC (Reg CC) is a banking regulation set forth by the Federal Reserve. Reg CC details the rules banks must follow to make funds deposited into accounts available for withdrawal. The regulation defines specific reasons deposits may be held and the corresponding amount of time the bank may hold the funds. Funds on hold are not available to the client for check clearing, Automated Teller Machine (ATM) cash transactions, checks negotiated at the teller line, online banking transfer or bill payment, or check card purchases until the day after the expiration date of the hold. Note: Associates may be held accountable for carelessness or negligence related to losses for failure to place a hold.
Capital City Bank policy is to place a hold on all checks deposited into any deposit account (for example: Demand Deposit Account (DDA), Negotiable Order of Withdrawal (NOW), Savings and Money Market Account MMA) using the guidelines outlined in this article. The associate accepting the deposit is responsible for issuing the hold notice and ensuring the hold is placed on the account.
See Holds Covered by Reg CC, Regulation CC Hold Calculator, or Funds Availability Chart for more information.
Account Open 30 Days or Less
A new account, as defined by Reg CC, is an account open for 30 days or less.
Limited Exception: A new account is an account opened by a client with no previous accounts with CCB. New clients always open new accounts. A newly-opened account is not a new account when the owner has had another transaction account (DDA or NOW account) at the bank for at least 30 days prior to opening the account.
Deposited Items
A 9-day hold is required on all checks as permitted by the Reg CC Funds Availability Chart.
If a hold is waived, override approval is required from a Teller Experience Supervisor, Client Experience Manager, Remote Facility Supervisor, or bank officer. If override approval is provided, the approving associate's name (first initial/full last name) and phone extension must be written in the upper left corner on the front of the check.
The hold policy is applicable to business accounts; however, hold waiver consideration for business deposits may be given to the following:
- Known businesses
- National account
- Items being deposited are consistent with the nature of the business
- Officer relationship
- Type of items or dollar amount
Not On-Us Items Presented for Cash
Items must be deposited. A 9-day hold is required on all not-on-us checks as permitted by the Reg CC Funds Availability Chart.
If a hold is waived, override approval is required from a Teller Experience Supervisor, Client Experience Manager, Remote Facility Supervisor, or bank officer. If override approval is provided, the approving associate's name (first initial/full last name) and phone extension must be written in the upper left corner on the front of the check.
Account Open 31 - 90 Days
Deposited Items
If an account is open 31 - 90 days, a Case by Case hold is required on all checks as permitted by the Reg CC Funds Availability Chart.
A hold can be waived for known payroll checks or payroll checks previously deposited/cashed and cleared. For all other checks, override approval is required from a Teller Experience Supervisor, Client Experience Manager, Remote Facility Supervisor, or bank officer.
If override approval is provided, the approving associate's name (first initial/full last name) and phone extension must be written in the upper left corner on the front of the check.
The hold policy is applicable to business accounts, however, hold waiver consideration for business deposits may be given to the following:
- Known businesses
- National account
- Items being deposited are consistent with the nature of the business
- Officer relationship
- Type of items or dollar amount
Not On-Us Items Presented for Cash
Items must be deposited. A hold is required on all not-on-us checks as permitted by the Reg CC Funds Availability Chart. Known payroll checks or a payroll check previously deposited/cashed and cleared may be cashed.
If a hold is waived, override approval is required from a Teller Experience Supervisor, Client Experience Manager, Remote Facility Supervisor, or bank officer. If override approval is provided, the approving associate's name (first initial/full last name) and phone extension must be written in the upper left corner on the front of the check.
Account Open 90 Days or More
For deposited items and not-on-us checks presented for cash, holds may be placed on a case-by-case, exception or large deposit basis for accounts opened 90 days or more. The decision to place a hold is made by the associate accepting the item for deposit or cash.
Associates may be held accountable for carelessness or negligence related to losses for failure to place a hold.
Placing Holds - Decision Guide
Consider the type of item being deposited or presented for cash:
Known Payroll Check
Known payroll checks or a payroll check (for example: McDonalds, Macy's Outback) previously deposited/cashed and cleared may be cashed.
If the payee and the CCB account owner are the same, a hold is not required unless there are extenuating circumstances (for example: extremely large check amounts, the check is stale-dated, or the CCB account deposited check is drawn on is overdrawn).
Local and State Government Checks
If the payee and the CCB account owner are the same, a hold is not required unless there are extenuating circumstances (for example: extremely large check amounts, the check is stale-dated, or the CCB account deposited check is drawn on is overdrawn).
Client's Personal or Business Check Drawn on Another Financial Institution
Pay attention to clients who make regular deposits with checks made payable to himself/herself that are drawn on his/her account in another financial institution.
The client may be writing checks on uncollected funds in one account, and then covering them with checks drawn on uncollected funds in the second account. Note: This is also known as kiting. These checks must be looked at closely to determine if we should place a hold. The client’s relationship with CCB would be a strong determining factor in the decision-making process.
In Silverlake, select a Client Information File (CIF) inquiry to determine the client’s account relationship with CCB. A CIF inquiry generates a list of the client’s accounts and any other account relationships.
The following information is available at the account level:
- Special instructions or messages
- Date the account was opened
- Current and available balance at the time of the transaction
- Average collected balance - If a check is returned, can we collect it from the client?
- Month to date average balance
- Date of last deposit
- Date last overdrawn
- NSF/OD/Returns information
- Officer initials - If a client has an officer’s initials on their account, contact the officer about the client’s relationship and if it is necessary to place the hold.
Some questions to consider in the decision-making process:
- How long has the client banked with CCB?
- What are the client's normal deposit transactions (for example: Electronic Fund Transfer (EFT), in person, ATM).
- How often does the client make deposits?
- Is this an even dollar item?
- Is the item one that makes sense for the client?
If the client is a well-known established client that you are very familiar with and you are comfortable that if a deposited item should be returned, the bank would be able to recover the funds, it would not be necessary to place a hold unless there are extenuating circumstances.