Ordinary Care in Sight Examining Checks
by Mary Beth Guard and John Burnett Guru BIOS
Question: We bulkfile our checks. We are reviewing signatures on large items of $2,500 and up. We feel this
is using “ordinary care” as mentioned in the Uniform Commercial Code. What are the courts requiring and
what are other banks using as “ordinary care”? A colleague has questioned whether we need to check any signatures.
Answer: The standard for "ordinary care" requires that the bank have a standard operating procedure for examination of checks, and that it adhere to it. The
SOP should reflect industry standards in the business area in which the bank operates.
Courts generally measure a bank’s care in this area against the standards used by peers in the market area. We aren’t in a position to provide that information.
The original version appeared in the September/October 2004 edition of the Oklahoma Bankers Association Compliance Informer.
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