APPROVING ENDORSEMENTS

We run a signature verification program and review any items that fall out of the acceptable range. We also review endorsements on these items and return any that are improperly endorsed (meaning payable to a business and endorsed by a person or payable to several parties and endorsed by only one ("and" payees).

Because of whining in the past, we now notify the branch that houses the account that we are returning the items and the reason. Lately they are asking if we can honor the item if the maker says they spoke with the payee and they did deposit the check.

Feelings on letting maker verify endorsements? thank you!

We also review endorsements on these items and return any that are improperly endorsed (meaning payable to a business and endorsed by a person or payable to several parties and endorsed by only one ("and" payees).

Waste of time. You already have a warranty that the named payee received the funds from the BOFD. If they didn't, you have a claim against the other bank. Why spend the money to do this and possibly inconvenience your own customers when their checks are returned??

For those who wonder where that warranty is, take a look at UCC 4-205. I believe that every state has adopted it. If the item is endorsed, but incorrectly, the presentment and transfer warranties will apply.

thank you!