If we have a customer that brings in a cashier’s check for deposit, but we have reason to believe the cashier’s check is fraudulent, could we place an exception hold for reason to doubt collectibility?
Yes, you may. Regulation CC states, in Section 229.13 (e) : (1) In general. Sections 229.10(c) and 229.12 do not apply to a check deposited in an account at a depositary bank if the depositary bank has reasonable cause to believe that the check is uncollectible from the paying bank. Reasonable cause to believe a check is uncollectible requires the existence of facts that would cause a well-grounded belief in the mind of a reasonable person. Such belief shall not be based on the fact that the check is of a particular class or is deposited by a particular class of persons. The reason for the bank's belief that the check is uncollectible shall be included in the notice required under paragraph (g) of this section.
Therefore, reason to doubt collectibility is a valid reason to place a check hold on a cashier's check that has been brought in for deposit. Keep in mind, however, that notice of the hold must be provided to the customer.
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