I'm not very familier with this issue and am hoping you can help me. A teller at the bank accepted a check for deposit made payable to two parties but failed to obtain the endorsment of one of the parties; a five-day case-be-case hold was placed at the time of the deposit. The check hasn't been returned yet but we are anticipating it very soon. Would you please instuct me on the appropriate action the bank should take, including what type of notice should be sent to the customer? Certainly the normal Reg CC hold notice isn't sufficient? Or, should the bank just debit the customer's account for the amount and send the check back to the customer?

When you say you are anticipating the return, have you been notified by the paying bank or agane that tehy are returning the item for improper/missing endorsement? If you have been notified, then yes, you should notify your customer and withdraw the funds from their account, or place a hold until the item is returned. Notification to your customer as soon as possible should be done. Additionally, you should get the returned item back to your customer ASAP.