It depends...if they checked out a regular book with a regular due date and are overdue, they WILL be able to check out other items. However if they got a notice and the book is recalled and overdue, they will NOT be able to check out any other items. They HAVE to return that book first.
Depending on how overdue it is, they may still be able to renew online but they can ALWAYS renew in person.
If you are ever unsure the best thing is to send them to the LC Desk.
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