Answers about Funds Availability

I re-deposited a check. Now the bank says that it has placed an exception hold on my funds. What does that mean?

The bank may use an exception hold on a check that was previously deposited but was returned unpaid. This allows the bank to lessen the risk associated with this transaction.

An exception hold may not be applied to any check (including an “official type” check) that has been returned unpaid and re-deposited if the reason for the return was a missing endorsement or a post date and that reason no longer exists.

The bank may generally extend the availability schedule for local checks by five business days.  Therefore, a local check that had an exception hold would generally be available no later than the seventh business day.

In addition, you may want to review your account agreement provided to you at the time the account was opened, which should explain the availability rules applicable to your account.

August 2010