Can a bank accept an check made payable to a trust for deposit into a personal account?
We seem to be seeing more and more checks made payable to 'John Doe Life Estate' or 'John Doe, Life Tenant'. Could you explain what that means to us when John Doe wants to negotiate that check? We had a customer today with a check written like this and she explained that the reason her's said that is because when she passes, the checks from the oil and gas company will continue to go to her children at the time of her death. Any further explanation you could provide would be super!
We have a commercial account which has had fraudulently created checks presented against it. When we returned these items to the bank that cashed them, that bank sent them back stating there was only a 24 hour window to return. We initially returned them back as fraud within two weeks of receipt. Shouldn't that bank accept the check and the loss?
Recently we have been receiving Breach of Warranty Claims for fictitious checks and/or forged maker signature checks drawn on the Bank's submitting the claims.
My understanding is that under the UCC the paying bank has until its midnight deadline to return a check for these reasons. We initially denied the claims, but have now received demand letters stating that are in breach of warranty provisions.
Along with these claims, banks are providing hold harmless agreements stating that their customer has filed formal complaints with law enforcement. From what I can ascertain they are attempting to use the warranty to claim that the creation of a fake check is an "alteration". We don't belong to a clearing house that allows warranty claims on fraudulent checks.
Any insight you can provide is most greatly appreciated.
What is the best way to handle an insurance check made payable to an individual that's being deposited into a business account? For example, John Doe was in an auto accident. His insurance company sent the auto body shop a check made payable to John for repairs. The auto body then deposits the check into their business account. Same type of example for medical claims as well.
We have an account that has been closed for several years due to the account being compromised. We recently have had some checks come through our cash letter and want to know the best reason to provide for returning them. I don't want to return them as forgeries because I do not have an affidavit signed by the customer. Is there a reason of "account closed at customer's request due to forgery"? Our processor says they can not use this reason.
Is there a limit on how many times a check may be presented to the drawer bank for payment?
Security and compliance officers need to work together implementing the new Same-Day Settlement rule that went into effect on January 3, 1994.