Final answer:
Under Regulation CC, there are two primary forms of holds placed on checks: case-by-case holds, where banks determine the necessity of a hold based on each specific check's circumstances; and exception holds, which apply to specific situations such as large checks or a history of overdrafts.
Step-by-step explanation:
Regulation CC, also known as Reg CC, is related to the Expedited Funds Availability Act, which governs the amount of time a bank can hold a deposited check before making the funds available to the depositor. There are two main forms of holds under Reg CC: case-by-case holds and exception holds.
A case-by-case hold is when a bank decides to place a hold on a deposited check based on the specific details of that deposit, such as the amount of the check, the history of the account, or doubts regarding the check's authenticity. Meanwhile, an exception hold applies in certain exceptional circumstances defined by Reg CC, which typically include large deposits, redeposited checks, repeated overdrafts, and reasonable cause to doubt the collectibility of the check.
These holds are in place to help banks manage the risk of check fraud and non-sufficient funds while also ensuring that customers have timely access to their deposited funds as required by law.