Holds/Reg CC
According to Reg CC, what constitutes a "large check"?
Check in an amount exceeding $6,725
Length of membership: What is the key date we consider regarding membership length and check holds?
30 days - all checks on new memberships are subject to an extended, non-tiered hold.
How is a third-party (signed-over) check properly endorsed?
"Pay to the order of Person B (person negotiating check)"
Person A (original payee) signs
Person B signs last
True or False: We can verify for a member whether a check they present is "good."
False! We can discuss concerns, but we cannot say a check is "good" or "bad."
What amount does Lake Trust make available immediately on all checks we choose to negotiate?
$275.
Technically, Reg CC stipulates this be available on the first business day after the deposit, but we choose to make the funds available upon deposit.
Name three things that would give a membership "derogatory status."
What kind of checks should always be endorsed and deposited in full?
Insurance, governmental, tax, or title checks.
Explain the difference between a "post-dated" and "stale-dated" check.
Post-dated: Check bears a date in the future.
Stale-dated: Check bears a date greater than six months ago.
We can negotiate these checks (as well as undated checks), but are not obligated to do so and must convey to the member that they're assuming the risk for these.
What type of hold would you place if you had good reason to believe a check would not clear?
Collectability (seven-day tiered hold)
Transaction History: Share how you would research a member's transaction history to confirm whether a similar check has been deposited in the past
How should an on-us check made out to a business be cashed for a non-member?
Trick question! Business checks need to go into business accounts, so non-members cannot cash on-us checks made out to businesses (unless it happens to be a business with LT accounts and they're happy to just deposit it in full there)
How should a member endorse when their name has changed and a check is made out to their former name?
Sign old name first. Sign new name underneath old name.
NOTE: We must have documentation of this name change!
$500 is available immediately, the rest is on a two-day hold, no matter the ATM.
Funds on Deposit: We should look for 75% of funds required for checks below $_____ and 100% of funds for checks over $_____.
$5,000
Name three things we verify before cashing an on-us (Lake Trust-issued) check for a non-member
Any check number below what is considered a "low check number"?
Check numbers below 600.
Name three types of checks we must make available on the first business day after the date of deposit
NSF Activity: How many NSFs within six months is considered a red flag that should trigger a check hold?
Six NSFs in six months.
Also, an account that has been in the red more than two days in the last three months.
Who can negotiate a check written to
"Serena Williams/Venus Williams"?
Slashes are interpreted as "or" and means either payee may endorse or negotiate the check.
A non-member presents an on-us check from a local business. Upon reviewing the account balances, you see that this check will not clear due to insufficient funds. Demonstrate how you would handle this conversation with the non-member.
"Thank you for your patience! Unfortunately, I am not able to cash this check at this time. We recommend reaching out to the person who issued you this check for more information. Here is your check back for now."