Time and Money
A $10,000.00 check, drawn from a mortgage lender`s escrow account based in NY, was deposited into a business checking account. The bank put an eleven (11) working days hold on it. Is this acceptable?. one (1) week into the hold some checks came in for payment and were returned, unpaid by the bank as Uncollected funds and the account was charged $30.00 for each of the returned checks. Is the bank right?
Asked on 7/13/03, 3:06 pm
1 Answer from Attorneys
C. David DuMond
Law Offices of David DuMond
Re: Time and Money
If your account is an established (more than 30 days) customer account, then the maximum hold is 5 business days. If not an established account, then the bank can hold your checks as long as it wants. See the Expedited Funds Availability Act. http://www.bankrate.com/brm/frames/hyperlink.asp?link_address=http://www4.law.cornell.edu/uscode/12/ch41.html
Answered on 7/13/03, 7:48 pm
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