I found this good information about forged endorsements on your site; however, I am wondering what the drawee bank liability would be if they don't return a check that has no endorsement at all? As a matter of law, a drawee bank does not have a duty to conduct any review of payee endorsements on checks received from a depository bank. Under the UCC, a check bearing a forged endorsement is not properly payable (Revised UCC . 4-401). If the drawee bank pays a check bearing a forged endorsement, then it is obligated to recredit the drawer account for the item.
What is the time frame that a customer has to report "check fraud" (forged signature or endorsement) on an account (consumer or business) to be reimbursed by the financial institution?
Can a non-account holder sign over a government check to an account holder for deposit or cash on his/her account?
We have received from another bank a copy on a check, affidavit of forgery and a cover letter stating that the check is forged and under sections 3-417 and 4-207 of the Uniform Commercial Code guidelines they would like reimbursement for this item. Our customer cashed the check on her account Jan 11, 2006. The other bank paid the check on Jan 13, 2006. The letter is dated for March 8, 2006 and we received it on March 10, 2006. Do we have an obligation to reimburse this bank for this item?
What is the time frame for a customer to assert a Forged Endorsement. I just received one that was negotiated by us on 7/15/03 that was just claimed on 3/15/06. Is this out of the time frame?
I received a tax return check for deposit on long time client (good history) Mr. C.(only person on account) the check made payable to both Mr and Mrs C. Can I accept this check with both signatures and Mrs C's. ID?
I filed a check fraud affidavit with the drawing bank. The depositing bank sent a letter stating that they have no liability on a forged check endorsement because of the time frame. The check cleared six years ago but only came to our attention this year. They also stated that there were no more funds left to provide to me. I think this is indicative that they know the account the check was deposited to. After two subpoenas and two letters from my attorney, they are insisting they do not have this information. What can I do to get the information and money?
What are our rights to return an item when it is returned through the Fed -- post the 24-hour rule -- for "refer to maker?" We find this occurs most often when we discover a check kite and start returning items to the other bank -- all of a sudden they start returning checks for "refer to maker" that are long past the right of return.
We have a customer who is a personal injury attorney. It is not unusual for him to deposit very large settlement checks into his business account. These checks are made out to his client and himself as their attorney. I believe he is endorsing their name and then his own. On all of the checks, the endorsements look the same. I brought it to the tellers' attention that they are accepting checks that I believe to be possibly forged endorsements. One of them said they think he has POA on his clients. Should we required him to provide us a copy of the POAs before allowing him to deposit the checks?
Question: We had a check deposited into one of our single name accounts over a year ago, and the drawee bank has now sent it to us with an affidavit of forged endorsement.