Check Clearing Policies

Availability of Funds and Collection of Checks

Your Ability to Withdraw Funds

    Like most financial institutions, our policy is to delay the availability of funds that you deposit in your account. During the delay, you may not withdraw the funds in cash and we will not use the funds to pay checks that you have written. Please remember that even after we have made funds available to you and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit. If you have any questions please call your Firs Star Bank representative for assistance.

Determining the availability of a deposit

The length of the delay is counted in business days from the day of your deposit. Every day except Saturday, Sunday and a federal holiday is a business day.

The length of the delay varies depending on the type of deposit and is explained below.

Same-day availability

Funds from the following deposits are available on the first business day after the day of your deposit: Payroll Checks, Insurance Checks, Government Checks, Cashiers Checks, Travelers Checks and Money Orders.

Other check deposits

To find out when funds from other check deposits will be available, look at the first four digits on the routing number of the check. Some checks are marked "payable through" and have a four or nine-digit number nearby.  For these checks, use this four-digit number (or the first four digits of the nine-digit number), not the routing number on the bottom of the check, to determine if these checks are local or non-local.  Once you have determined the first four digits of the routing number, the following checks will show you when funds from the check will be available.

If your deposit includes both local and non-local checks, only a total of $100 from the checks will be available on the first business day after the day of your deposit.

Automated Teller Machine (ATM) Deposits

A deposit made through an ATM will be available for withdrawal within three business days.

Refusal of a Deposit

We reserve the right not a accept deposits. In some circumstances, items unacceptable for deposit may be processed as collection items.

Hold on Other funds (Check Cashing)

If we cash a check for you that is drawn on another bank, we will withhold the availability of a corresponding amount of funds that are already in your account.  These funds will be available at the time funds from the check we cashed would have been available if you had deposited it.

Endorsement 

It is important that you place your endorsement on the back of all checks you are depositing.  A 1-1/2 inch area has been designated for your endorsement.

Please ask a First Star Bank employee about the proper placement of your endorsement.  If your endorsement is illegible because you have endorsed the check in the wrong location, you will be liable for any resulting losses.

Your Responsibility 

You agree that First Star Bank may deduct the amount of a check deposited to your account from your balance if First Star Bank receives notice that the check has been unpaid.  First Star Bank may make this deduction even if the unpaid check has not been returned to the bank.  You agree that First Star Bank may charge a unpaid check against your account even if First Star Bank could claim reimbursement for the check from the bank on which the check was drawn or from some other bank.

You agree that First Star Bank may charge a check back even if the charge results in an overdraft.

Longer delays may apply

Funds you deposit by check may be delayed for a longer period under the following circumstances:

·          We believe a check you deposit will not be paid.

·          You deposit checks totaling more than $5,000 on any one day.

·          You redeposit a check that has been returned unpaid.

·          You have overdrawn your account repeatedly in the last six months.

·          There is an emergency, such as failure of communications or computer equipment.

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available.  They will generally be available no later than the 11^th business day after the day of your deposit.

Special rules for new accounts

If you are a new customer, the following special rules will apply during the first 30 days your account is open.

Funds from electronic direct deposits to your account will be available on the day we receive the deposit.  Funds from deposits of cash, wire transfers, and the first $5,000 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federal, state and local government checks will be available on the first business day after the day of your deposit.  The excess over $5,000 will be available on the ninth business day after the day of your deposit.  If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 will not be available until the second business day after the day of your deposit.

If you have any questions, Contact:

                                                                First Star Bank

                                                                418 W Broad Street

                                                                Bethlehem, Pa 18018

                                                                610-691-2233

©First Star Bank, 2005