Computer Generated Check Signature
Question: We just noticed that one of our customers is using computer generated checks for his business, and the checks bear printed signatures put on by his computer. We don't have a facsimile agreement for this account. What kind of trouble are we in? We checked back, and found he started using these checks almost a year ago.
Answer: You're not in any trouble at all. If he has been using the checks for a year, the so called signatures are ratified due to the fact that he has raised no objections to your honoring the checks for all that time. In the Uniform Commercial Code the term signature is defined to be something made manually or by means of a device or machine or made by the use of any name, including a trade or assumed name; or by a word, mark or symbol executed or adopted by a person with present intention to authenticate a writing. If he had stated his intent to you before he started using the computer generated checks, you certainly would have wanted the agreement on file. However, as all this time has gone by, any agreement at this point would be superfluous.
Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 3, 4/05
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