Check Cashing Guidelines

Holds/Reg CC

100

According to Reg CC, what constitutes a "large check"?

Check in an amount exceeding $6,725

400

Name three types of checks we must make available on the first business day after the date of deposit

• U.S. Treasury checks payable to the member
• Checks drawn on Lake Trust Credit Union
• State and Local government checks payable to the member.
• Cashier’s, certified, and teller’s checks payable to the member
• Federal Reserve Bank checks, Federal Home Loan Bank checks, and postal money orders, if these items are payable to the member

"Member in Good Standing"

100

Length of membership: What is the key date we consider regarding a membership's length and check holds?

30 days - all checks on new memberships are subject to an extended, non-tiered hold.

200

Transaction History: Share how you would research a member's transaction history to confirm whether a similar check has been deposited in the past

• Select account > "Balance History" > change dates and review for similar deposits > "tMagic Review" for check image.
  
  
• Select account > "History Query" > filter "Transaction Type" for "Deposit" only > change dates and review for similar deposits > "tMagic Review" for check image.

300

Funds on Deposit: We should look for 75% of funds required on checks below $_____, 100% of funds on checks over $_____

$5,000

500

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.

Check Procedures

100

How is a third-party (signed-over) check properly endorsed?

"Pay to the order of (Person B)"
Person A (original payee) signs
Person B signs last

400

Name three things we verify before cashing an on-us (Lake Trust-issued) check for a non-member

• Two pieces of valid ID for the payee
• Confirm non-member status in DNA
• Run OFAC on the payee
• Verify funds are available in maker's account
• Verify that the check is in sequence in the maker's account
• Verify maker's signature on file
• Ensure the payee has endorsed the check
  
  

Wild Card

100

True or False: We can verify for a member whether a check they present is "good."

False!

300

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!

400

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. 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."