HOLDS ON CHECKS RECEIVED FOR DEPOSIT IN THE CREDIT UNION

When a member presents a check, the credit union has the right to place a hold on all but $100 of that check for a specified number of days.  This is to ensure to the credit union that the funds to cover this check are available.  New features have been added in Program #2 to make this process easier for the credit union.

UNDERSTANDING THE DETAILS OF A CHECK HOLD

• You can set parameters in Program #47 Option C that cause the system to automatically enter a hold on a check received that exceeds a specified amount.    NOTE:   THE CHECK HOLD FEATURE IN PROGRAM #2 DOES NOT WORK IF THERE IS NO DOLLAR AMOUNT IN THIS FIELD.   (Shared Branch check holds are determined by the transaction code used, and do not require this field)

• $100 of a check is made available to the member at the time the check is presented.
   
• The remainder of the check (in even dollars to the nearest dollar) is held for the number of full calendar days (including weekends and holidays) specified by the teller.  
   
• The hold is placed upon the funds in the share type specified by the teller
   
• The system creates Transaction Code #492 in Program #7 for each check hold placed.  This transaction is for $0
   
• A memo appears on the member voucher, in member history and on statements showing the amount of the hold, the share type held and the last date funds will be held
   
• At 12:01AM the morning following the last hold date, the hold will automatically be removed.  

    EXAMPLE:   A check is received on December 1 for $500 and the teller places a 3 day hold on the funds.

                    A hold is placed on $400 immediately

                    December 2 is the first full day of the hold

                    December 3 is the second full day of the hold

                    December 4 is the third full day of the hold

                    The hold is released at 12:01AM  December 5

PROGRAM #47 OPTION C - MAXIMUM CHECK AMOUNT

Checks received over the amount listed in this field will automatically default to a 7 day check hold when logged in the Funds Received window.  The teller has the option to change the number of days and share type.

FUNDS RECEIVED WINDOW

When checks are logged in the Funds Received window in Program #2:

• If the check amount exceeds the amount entered in Program #47 Option C, the system will automatically default to a 7 day hold to R share type.
• The teller has the option to change the number of days (1-9) and the share type to be held.
• If the check amount does NOT exceed the amount entered in Program #47 Option C, a hold cannot be done in the Funds Received window, and must be done in Program #5 Option D.

MEMBER VOUCHER

The member's voucher will show the hold(s) placed on funds and the last date funds will be held.

MEMBER HISTORY

A entry is placed in the member's history showing the details of the hold on funds.

PROGRAM #5 OPTION D

As in the past, this option shows any funds held for a specified number of days.  

• Holds placed via Funds Received window will appear in this option
• Changes in the number of days or share type can be done in Program #5 Option D
• A new hold can also be placed on funds using this option.
• A Transaction #492 is created for any change made in this program, generating a new memo in the member's history reflecting the change.

LISTING OF ALL CHECK HOLDS PLACED WITHIN SPECIFIED SEQUENCE RANGE

• Program #7
• Use Option E to set a specified sequence range
• Choose Option H
• No Teller Password
• Choose Option 2
• Enter 492  (to search for transaction code 492)
• You will receive a list of all transaction holds in that sequence range
• F/C field shows the amount of the hold that was placed
• Principal field shows the date thru which funds will be held