Are There Exceptions To The Funds Availability (Hold) Schedule?

Yes. There are six exceptions that allow banks to exceed the maximum hold periods in the availability schedules. The exceptions are:

  1. checks deposited to new accounts;
  2. large deposits ($5,000 or more in checks in any one day);
  3. edeposited checks;
  4. deposits made by check to accounts that are repeatedly overdrawn;
  5. deposits of checks for which the bank doubts collectibility; and
  6. deposits made under certain emergency conditions.

In the case of exceptions, the regulation provides that banks may extend the availability schedule by a reasonable period of time. The bank may be able to extend the availability for a longer period of time, but it must be able to prove that the additional time is reasonable.

Kristal M. Cowger,  Attorney at Law

Blado Kiger Bolan, Tacoma, Wash.

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