Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#94789 - 07/08/03 01:54 PM Endorsement Problem?
Lestie G Offline

Power Poster
Joined: May 2002
Posts: 3,608
Near the Land of Enchantment
I'm not a UCC expert - so I'm hoping for a little help to be sure I've got this right.

The bank wrote a check to an estate. The check was payable only to the estate. It was endorsed by one of the executors individually, then deposited into the executor's personal account. We returned the check "not endorsed as drawn" and it was properly endorsed, then rerun. It appears to be deposited to that some personal account, however.

The sticky part of this is that there is more than one executor on this estate, and the other one is throwing a fit because the money didn't make it to her. While I understand her frustration, I think we are out of the picture. We issued a check to the estate (no executors were named as payees). The check was properly endorsed, so we have to honor it. We can't control where the bank of deposit allows it to be deposited.

I think the only courses of action for the executrix would be to go after the bank that allowed the check to be deposited into a personal account, and even that might be a tough case to make. She could also sue the other executor for misappropriating the estate's funds, I guess.

Am I missing anything? Does my bank have any liabilities or responsibilities? Does the executrix who didn't see benefit of the money have any course of action other than what I listed?
_________________________
Opinions my own.

Return to Top
Operations Compliance
#94790 - 07/08/03 02:00 PM Re: Endorsement Problem?
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
I think you are right. The co-executors claim is now against the other co-executor. I believe in Texas, they each can act on their own, unless it involves real estate.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  Andy_Z, John Burnett