We had a deposit made into an account holder's account and the checks were made payable to an organization (not the account holder). They were not endorsed over to the account holder either.
Where can I go and find the state law that addresses this along with the bank's liability in these issues?

When you processed the check, you guaranteed (to the maker) that the proper party got the value. Your liability is the amount of the check if the payee claims to the maker that they did not get the value.

If the maker is happy, "no harm, no foul."

Al

Thank you. I want tellers to understand that they need to pay attention and what the bank's liability is so where can I go and find rules on this.

You are liable to the person/company who wrote the check for the amount of the check and any damages that may have she/he/it may have incurred because of the misdirection of funds.

Check your state's version of the Uniform Commercial Code 4-207 and 4-208, transfer and presentment warranties. As Al pointed out, you have made a warranty to the drawee bank that the appropriate party received benefit from the funds. This statute gives the drawee bank the right to recover from your bank the amount of funds that were misappropriated in the event the payee claims forged endorsement. (In many states they have up to three years to make a claim.) Ask your tellers, "Can you guarantee that in three years we can recover these funds from our customer if there's a problem?"

you can also look at your own deposit account agreement which should have a section that deals with accepting deposits and paymetns