Dealing with Attorney/Client Checks
by Mary Beth Guard and John Burnett Guru BIOS
Question: An attorney banks with us. He is a personal injury attorney, and most checks he deposits are
payable to him and his clients. They both endorse the checks and the attorney deposits them into his account, and then distributes the funds. What documentation,
if any, should we be getting from the other party on the check?
Answer: It’s impractical to require any documentation from the attorney’s clients. If you want the attorney’s business, you must assure yourself that the attorney
will be able to cover any of these deposited checks in the event there is a problem with indorsements. If you don’t think the attorney can do so (or will), reevaluate
your business with the attorney.
The original version appeared in the September/October 2004 edition of the Oklahoma Bankers Association Compliance Informer.
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