I feel stupid asking this question, but my searches through BOL and textbooks haven't yielded a clear answer.
I worked a relief shift at the drive-through a few days ago, and I noticed that three business deposits had the checks endorsed "Pay to the order of XYZ Bank, for deposit to account of Acme Widget Company, account #123456789".
I seem to recall a discussion about the dangers of accepting a check payable to the bank when the bank is not the party benefitting from the funds, but I can't find it.
I think it was about consequences of the bank becoming a holder in due course.
Could someone conversant in UCC steer me in the right direction or just tell me outright whether or not there's a problem?