by Rob Robinson, Camels Eye, Ltd.
Problem 11 - continued:
Re: Liability of the bank on checks paid during the past year bearing forged signatures:
When can a stop payment be placed on a cashier's check?
One of our branches sold an official check for $1,000.00. The written amount is for the $1,000.00, but the check protect embossing was for $10,000.00. Do we have the right to place a stop payment on it since it isn't lost or stolen?
Are the return time frames different for an altered check versus a counterfeit check?
We received a request from Bank A for reimbursement on an altered check that we accepted, in good faith, for deposit over three months ago and which Bank A paid. The check was "payable through" another bank. What is our liability in this case? What is the "payable through" bank's liability? What UCC Section should we reference in answering the request?
Question: We don't have a written policy for customers regarding the use of rubber stamps for signing business checks.
I recently took a loss on a washed check. I was the depository bank. I am trying to find out if I had to take that loss. As the depository bank, I know we warrant the check but there was no way to tell that this check had been washed. Are we still responsible? The maker's bank did not discover the alteration until the customer received their statement. We took the loss but I am just trying to understand it better. Also where do I find the rules for this?