Does anyone check for endorsements on cashiers checks that clear through the cash letter? In reviewing checks paid, we have found some checks that cleared with no endorsement.

Would we be held liable if someone were to claim their cashiers check was stolen or would the responsibility be on the bank of first deposit? Also, what would be the deadline for returns for missing endorsement?

Thanks

Endorsement claims on cashier's checks are under the same time constraints as those on other checks -- three years from the rise of the cause of action in most states (shorter in Georgia, Florida and possibly others).

As the issuer of the check, you could receive a claim from a payee for fraudulent endorsement (or lack of endorsement) and non-receipt of benefit from the check, which you would quickly turn into a claim for breach of transfer and presentment warranties against the depositary bank.

Thank you!!