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#12013 - 04/19/01 09:10 PM Check Review Tolerances
Kathy Curtis Offline
New Poster
Joined: Apr 2001
Posts: 2
Washington, DC
We are currently reviewing our large item tolerances that require a staff member to review checks to verify signatures and decide whether to either pay or return the item. Our large item cutoff is currently $5,000. Can I have some feedback please on what large-item dollar amount is in effect at your banks? Do you also have staff review for whether items are in check sequence order or not? Do you do anything special with altered checks? Are items reviewed for stale or post dates? Do you have automated systems that provide some assistance with these verifications? Any feedback would be most appreciated.
Thank you,

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Security - PUBLIC
#12014 - 05/31/01 01:59 PM Re: Check Review Tolerances
Barbara Hurst Offline
Barbara Hurst
Joined: Dec 2000
Posts: 61
The amount of the item cutoff, I've found, varies greatly with your location - and the location of your depositor. In Salina, Kansas I've found as low as $1,000. In New York City it can be as high as $25,000. Try some of your surrounding financial institutions to get a feel for what is right in your circumstances and geographical area. No one I know does check sequence order any more. Bulk filing did away with that practice some time ago. From a security standpoint, I love it! But I'm afraid from a time study viewpoint, it has been done away with. As far as an altered check is concerned - if it is drawn on you, coming in for payment, and shows signs of obvious alteration, if you cannot contact your depositor, I would not hesitate to return it at once through the work, with the reason for return being "Suspected or Obvious Alteration". The new UCC removes the liability from the financial institutions on stale and post dated items, for the most part. No one I know of reviews for dates. Automated systems would have a hard time being applied to any of these facts, though I'm sure in time we'll see some sophisticated program in use.

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