What is the statute of limitations of a fraudlent endorsement. From what point does this time limit start and where in what article do I locate. This is for the State of Texas. Thank You

Let me go into a little further detail. A commercial customer brings in checks or money orders made payable to the business or is indorsed with pay to the order of "the business". The items are indorsed by Joe Blank, indorsed by again by Mary Someone. These items are then cashed. The commercial company states that one of the indorsements are fraudlent.
Help! Thanks

I hope someone can point this out quickly. I have a very similar situation too. We are the depositing bank, our customer didn't know first endorsement was forged, now payee of check has claimed forged endorsement with his bank. We too are need to know a time frame. Have you posted in the State Forum?

In most states the UCC allows three years for an individual to claim forged endorsement. In these cases you would debit the business account for the amount of the check. This is the risk that currency exchnages and other MSB's take when accepting second and third party checks for cash. Their only recourse is against the individual who cashed the check at their establishment.

Thanks, we have to eat this one!