Are there exceptions to the funds availability (hold) schedule?

Yes.  The regulation provides six exceptions that allow banks to exceed the maximum hold periods in the availability schedules.  The exceptions are considered safeguards against the risk associated with each.  These are the exceptions:

  • Checks deposited to new accounts
  • Large deposits ($5,000 or more in checks in any one day)
  • Redeposited checks
  • Deposits made by check to accounts that are repeatedly overdrawn
  • Deposits of checks for which the bank doubts collectability
  • 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. Here are some examples:

  • An extension of up to five business days for most checks
  • An extension of one business day for checks that are drawn on, and deposited into, the same bank
  • An extension of up to six business days for funds deposited into an ATM not owned by the bank

Therefore, a local check that had an exception hold would generally have seventh business day availability. 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.

July 2017