Raul has had a very successful weekend with his lawn mowing and lawn care business. He makes a deposit of $6,500. The depositary bank may place a hold on the funds for how long?

Question

Quizplus · Accepted Answer

Under the Expedited Funds Availability Act, banks can hold local checks for two business days. However, for non-local checks or in certain exceptional cases, the hold can be extended up to seven business days. Given the amount Raul is depositing, the bank might consider it an exceptional case, allowing for an extended hold of up to seven business days. Since banks do not count weekends or holidays, this could effectively become eight calendar days or more, depending on the timing of the deposit.

Raul Has Had a Very Successful Weekend with His Lawn