Our general policy is to make funds available from cash and check deposits available to the depositor immediately. At that time, depositors can withdraw the funds in cash and we will use the funds to pay checks that the depositor has written. Funds from electronic direct deposits will also be available on the same day we receive the deposit. In some cases, we may delay the depositor’s ability to withdraw funds beyond the day of deposit. Then the funds will generally be available by the second business day after the day of deposit.
Notwithstanding the foregoing, anytime the Association determines there is reasonable cause to doubt the collectability of a deposit item, we will invoke the procedure authorized by Regulation CC to place a case-by-case hold on the item. In this instance, we will provide the customer with the case-by-case notice under Regulation CC and hold the funds pursuant to Regulation CC’s normal availability schedule. Effective July 1, 2020, the first $225 of a check with a case-by-case hold placed on it will be made available immediately. This amount will be indexed to inflation every five years.
Regulation CC also authorizes the ability to extend holds beyond the normal availability schedule for certain exceptions denoted in the regulation. Where appropriate, Highland Federal will invoke these exception holds and provide the proper notice to the customer.
For new accounts, as deemed necessary, we shall make available the funds represented by on-us, local, and nonlocal checks on the 7th business day after the banking day of deposit.
We shall provide funds availability training to all employees involved in deposit operations or any other bank activity governed by Regulation CC.