FUNDS AVAILABILITY / HOLDS POLICY
We will not cash a check on a negative account or an account where a loan is 10+ days negative unless approved by management or they are cashing an Employees Emergency Fund check. U.S. Postal Money Orders, cashier’s, teller’s, certified checks, checks drawn on FRB or FHLB, state and local government checks, U.S. Treasury Checks, and traveler’s checks will never have a hold placed.
To determine the availability of deposits, every day is a business day except Saturdays, Sundays, and Federal Holidays.
** FOR DEPOSITS MADE IN THE BRANCH OR THROUGH NIGHT DROP **
NEW ACCOUNTS (LESS THAN 30 DAYS OLD) FUNDS AVAILABILITY:
New accounts under 30 days old can only cash county payroll checks, U.S. postal money orders, cashiers’ and tellers' checks, certified checks, checks drawn on FRB or FHLB, state and local government checks, and U.S.
Treasury Checks and traveler’s checks. All other checks will have a nine (9) business day hold, regardless of amount.
ESTABLISHED ACCOUNTS (OVER 30 DAYS OLD) FUNDS AVAILABILITY:
STARTER CHECKS: Account owner information must be written on the check upon deposit. Starter Checks are to be deposited into the savings account only with a maximum of seven (7) business day hold. This is due to having reasonable cause to doubt a starter check's collectability and/or authenticity.
INSURANCE CHECKS: Checks from a known insurance company that are properly endorsed will not have a hold on the check (Example: Nationwide, State Farm, MetLife, Allstate, Progressive, Geico, etc.).
PAYROLL CHECKS: Payroll checks drawn and issued from a company or business and marked as payroll will not have a hold placed on them.
CHECK DEPOSITS UNDER $5,525.00: If you have funds in the account to cover the amount of the check, a hold will not be placed on the check. If not, a check aggregate of $1,200.00 or under will not have a hold placed on it. If it is $1,201.00 or more, the first $225.00 will be made available, and the remainder will have a two (2) business day hold placed on it if the amount of funds is not currently available at the time of deposit.
LARGE CHECK DEPOSITS OVER $5,525.00: The first $225.00 will be made available immediately, $4,800.00 will be available after a two (2) business day hold, and the remainder will be available after seven (7) business days.
EXTENDED HOLDS: Extended holds of up to seven (7) days will be placed on redeposited checks, checks deposited into accounts with repeat overdrafts, emergency conditions, and for reasonable cause if there is a belief PWC ECU will not receive payment for the check.
** REMOTE DEPOSIT CAPTURE **
If you deposit a check remotely through online banking, the check must be legible, endorsed with an actual signature, have the account number written, and FOR MOBILE DEPOSIT ONLY must be clearly written, or the Mobile/remote deposit box must be checked (if equipped). A minimum of a five (5) business day hold is automatically placed on the check, and only $225.00 is available until the deposit is reviewed and the hold is released. Reasonable Cause Holds may be placed up to seven (7) business days after review. All other policies listed on this document apply after the review period.
** DEFINITIONS **
New Account: An account is considered a new account during the first 30 calendar days after it is established. However, it is not considered a new account if each customer on the account has had another transaction account (including a dormant account) at the depository bank for at least 30 calendar days within 30 calendar days before the account is established.
Redeposited Items: Items that have been returned for nonpayment by the payor institution and are now being redeposited by your member. If the check is returned for a procedural reason that has now been corrected (i.e., missing endorsement, postdated check, etc.), you cannot place a Redeposited Item Hold on these checks. If the item was returned for bad signature, insufficient funds or other non-procedural reasons, then the Redeposited Item Hold is appropriate.
Repeat Overdraft Holds: These are available for the check deposits of members whose accounts have been repeatedly overdrawn. Per Reg CC, repeatedly overdrawn means one of the following two definitions and is applicable for the next 6 months following the determination date when you decided the member was a Repeat Overdraft Member:
a. Overdrawn (or would have been overdrawn if checks hadn’t been returned) for six or more business days during the previous six-month period (6 separate days or 6 days in a row); OR
b. Overdrawn by at least $5,525 on two or more business days in the past six months.
Reasonable Cause Holds: Placed if the institution reasonably believes it will not receive payment for the check. This hold could be placed in many situations, including the following examples:
a. The paying financial institution has sent a notice of dishonor stating that it will not pay the check;
b. It looks like the person presenting the check for deposit signed both names to a check payable to two people (We are unable to verify the endorsement of a joint payee);
c. The check is being deposited more than 6 months after the date on the check (stale-dated) or the check is being deposited before the date on the check(post-dated);
d. You have information that the depositor is involved in fraudulent activities (check kiting, etc.), the depositor is insolvent or that the paying institution is insolvent;
e. You have confidential information that the check may not be paid (be sure to retain documentation to support use of confidentiality reason); or
f. There are erasures or other alterations visible on the check.
Emergency Conditions: Conditions that are outside of the credit union’s control allow you to place extended holds on deposited items. The following are examples of potential emergency conditions:
a. Power or equipment failure at the financial institution;
b. Another financial institution is insolvent;
c. During a state of war;
d. In any other emergency outside of the institution’s control