We are the bank of first deposit for a cashier's check returned to us due to a stop payment by the paying bank. It is past the 24 hour window. We need the proper verbiage or a sample template to demand payment, in writing, based on UCC. Do you have a sample?
A check clears on a business account. The signature is good, it is within check number range and there are no red flags. Three days later another check clears, but it is flagged as duplicate. The client claims the first check is fraudulent. What is our recourse and obligation to the business, and is this different than a consumer account?
"A" deposits a check from individual "B" in his account. The check bounces. Both banks are located and do business in Los Angeles county. How long (or how many days) the bank has to inform "A"?
- Please include the code / regulation reference.
- I understand that depending on different factors it could take from couple of hours up to 2 business days (for the bank) to find out that a check has bounced .... the question is when the bank finds out (a) the bank is obliged to inform A and (b) within xx number of days.
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.
Under the OCC's regulations can you deposit a check into the customer's account if the check is written to a different person and he or she has signed it over to the person that has the account?
Is it necessary to file a UCC along with a Commercial Mortgage?
We received an IRS Levy last week, and our customer had $800 available at the time the levy was received. We placed a hold on the funds. Two days later we received notice that a $3,000 check he deposited was being returned for NSF. This meant true account balance available would have been ($2,200) at the time of levy. When we received the $3,000 check back, we debited his account, and he was negative. He has since deposited cash and has $100 available (including the $800 hold for levy). Checks are now presenting that we could pay if the $800 hold was not there. What am I obligated to pay the IRS now?
If a UCC-1 is filed/recorded with the county, does it expire in five years like a UCC filed with the state does? If so, is the best practice to record a continuation with the county prior to the expiration date of the UCC?
Our customer wrote two checks to the same payee, one was dated 2/10/12 the second was dated 4/10/12. Towards the end of July, the payee notified our customer that he did not receive the checks. He signed an Affidavit of Forged Endorsement and we returned the check as fraudulent along with the affidavit. The depositing back disputed the item as a late return. Is there anything we can do now? Can we possibly claim breach of warranty?
We deposited an item for a member on 06/14/12. The item has been returned to us today (07/10/12) as "refer to maker" "altered item." I believe we can refuse the return due to the 24 hour return deadline being missed, is this correct?