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#1557342 - 05/26/11 06:06 PM endorsements on checks
Anonymous
Unregistered

A young customer (19) comes into the bank with a large check over $50,000 payable to his dad, a non-customer, and wants to open a new money market business account using $40,000 and putting the rest into his existing SP checking. The father endorsed it as far as we know. The teller deposits the check without requiring the young man to endorse.
I think there could be a problem for the bank if there is ever a problem with that check. My supervisor feels its the father's fault for signing it and it is fair game to who ever negotiates it. If find that to be careless and shows the bank did not take care when accepting the check for deposit.
This is only one of numerous endorsement issues I have found, but maybe I am living in the olden days as I was told by the CEO.
I appreciate any feedback, even if it is to confirm that after 25 yrs in banking I am getting too old for this job.
Thanks!

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#1557344 - 05/26/11 06:09 PM Re: endorsements on checks Anonymous
BSABecky Offline
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BSABecky
Joined: Mar 2011
Posts: 126
Seymour, IN USA
Oh, my. Yes, the proper endorsement would be the father's signature, then 'pay to the order of', then the son's name, then the son would need to sign. I sort of don't know what else to say, but that was rule one when I learned the art of tellering. smile Now, 7 years later, that would prompt suspicion from me for sure. I don't know what I'd be doing at this point.
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#1557413 - 05/26/11 07:08 PM Re: endorsements on checks BSABecky
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 6,685
Illinois
Quote:
The father endorsed it as far as we know



This is your real cause of concern more than the son not endorsing the check. Most states have adopted the standard verbiage of the Uniform Commercial Code. The statute of limitations for the drawee bank to come after you with a forged endorsement claim from the father is three years. Will the son still have $60,000 on deposit with you in three years for you to recover?
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