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#273748 - 11/10/04 06:59 PM Cashed Checks and Offset
Kaos Offline
100 Club
Kaos
Joined: Dec 2002
Posts: 130
Does the right of offset cover a situation where the customer cashes a check instead of depositing it into his account and the check is returned account closed?

Our Harland Deposit Agreement states... "for any liability or debt" under the offset section. But isn't a cashed check final according to UCC?

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#273749 - 11/10/04 11:11 PM Re: Cashed Checks and Offset
Kaos Offline
100 Club
Kaos
Joined: Dec 2002
Posts: 130
Anybody?

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#273750 - 11/11/04 03:18 AM Re: Cashed Checks and Offset
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,000
Cape Cod
Cashing an on-us check is final payment. Cashing a check drawn on another bank is simply an accommodation, and you can pursue the person who negotiated it to you. That creates an obligation. If your state law permits offset in such a situation, go for it. If not, perhaps you'll need to use other collection methods, such as small claims court.
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John S. Burnett
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