Learn More - Click Here!

New Reply Thread Options
#1832026 - 07/11/13 02:49 PM Help- ATM Deposit
Anonymous
Unregistered

Need guidance. If a check is deposited into the ATM and it is made payable to cash with no endorsement,should we take the liberty of placing for deposit only on the back of the check and allowing it to credit the account?

I am thinking not. With the lack of endorsement, the transfer of ownership of the instrument has not taken place for us to be able to credit it.

I am inclined to send it back to the depositor to have them endorse it and redeposit.

Please advise
Last edited by JacFSB; 07/11/13 03:26 PM. Reason: added subject line detail
Return to Top Reply Quote Quick Reply Quick Quote
#1832044 - 07/11/13 03:15 PM Re: Help! Anonymous
Anonymous
Unregistered

Bump

Return to Top Reply Quote Quick Reply Quick Quote
#1832050 - 07/11/13 03:30 PM Re: Help! Anonymous
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
Adding an endorsement where none exists wouldn't be proper. And whether you add an endorsement or not, once you process the deposit and forward the item for payment, you're providing a transfer warranty for the deposit anyway.

That said, if your policy is to not accept unendorsed ATM deposits, then you woudl certainly be within your rights to reverse the credit to the customer and require their endorsement.

Is the depositor your customer, or another bank's customer?

Return to Top Reply Quote Quick Reply Quick Quote
#1832067 - 07/11/13 03:49 PM Re: Help! JacF
Anonymous
Unregistered

Depositor is our customer. Please explain how the transfer warranty works, if you don't mind.

Return to Top Reply Quote Quick Reply Quick Quote
#1832122 - 07/11/13 05:05 PM Re: Help! Anonymous
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
In layman's terms, you, as the depostory bank, warrant that the person who transfered this check to you (your customer) was the proper person to do so (among other things, but this is the portion that is relevant to this discussion), and that you have no knowledge of any facts to the contrary. You're making this warranty whether the prior endorsement is present on the check.

Since a check payable to "cash" is a bearer instrument (it can be negotiated by anyone), it doesn't need to be endorsed by a specific person, like a check with a specific payee does. But the endorsement still has value as it relates to memorializing the transfer from your customer to you. I'd suggest following through with your orioginal inclination and requiring the customer to endorse the check prior to acceptin gthe item for deposit.

Return to Top Reply Quote Quick Reply Quick Quote
#1832163 - 07/11/13 05:54 PM Re: Help! JacF
Anonymous
Unregistered

Thank you

Return to Top Reply Quote Quick Reply Quick Quote
Quick Reply:
HTML is disabled
UBBCode is enabled




Moderator:  MagicCity, P*Q, Truffle Royale