Situation:
7/16, a customer of ours deposits checks into her account, and later withdraws the funds.
The bank that these checks are drawn on notifies us that their customer has stated that the checks were stolen and their signature was forged. They have him sign an affidavit and send it to us asking for payment. They notify us after they have cleared their customer’s account, 7/30.
My question, if they accepted these checks, never returned them to us marked ‘stolen’ or ‘fraudulent’, and let them clear their customer’s account, are they liable because they didn’t check signatures?