when a bank has holdovers it will provide the depositor with a deposit ticket processed on the date that it received the instruments nevertheless this situation can give rise to holdover float whereby the money represented by the holdover checks briefly exists in duplicate once in the account against which the holdover checks are drawn and a second time in the account into which they are deposited 
to avoid holdover float some banks will post a debit to the account in which the holdover checks are to be deposited when the holdover items are processed the next day this debit will be zeroed out additionally some banks will require customers who frequently cause holdovers to sign an agreement specifying the conditions of the holdover other banks on the other hand address this issue by refusing to allow holdovers at all instead they simply instruct customers that holdover items will be processed on the next business day banks will typically only permit holdovers on behalf of customers with good credit ratings when bank examiners see holdovers occurring they typically take care to ensure that the holdovers are processed the next business day and that holdover debits are zeroed out regularly holdover timingalthough holdovers are generally rare at individual banks they are relatively common if viewed at the level of the overall financial system for instance the federal reserve has observed increased levels of holdover float on tuesdays due to the backlog of checks that were deposited but not processed over the preceding weekend similarly holdover float is generally highest in december and january due to unprocessed checks deposited during the holiday season temporary disruptions to banking hours such as severe weather events can also leave holdover floats in their wake 1scammers can take advantage of holdovers on check clearing to commit fraud check kiting for example targets banks or retailers through writing a series of bad checks sometimes drawn on multiple accounts reducing holdoverswhile holdovers allow for checks to properly clear they also provide banks with essentially free funds in order to keep banks from misusing these funds the monetary control act of 1980 specified several provisions to prevent or minimize holdovers some of these measures included having the federal reserve charge banks for certain activities like manual check processing and encouraged the use of electronic payments networks and computer readable check account routing information these allowed for much quicker and more efficient processing of checks and other payments reducing holdovers and shortening float time 