We had a customer contact us regarding stolen checks drawn on his business that appeared on his bank statement. I understand that we did not meet the midnight dead line for returning a forged signature. The checks also had no endorsement by the payee and no bank endorsement either. Fed record indicators show the bank of first deposit for processing as a large bank that clears items for many banks. We are not able to identify the original bank of first deposit. We are wondering what our options are. Does the bank of first deposit share any responsibility due to the missing endorsement?
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.
If someone has a plenary guardianship should the checks issued for the ward be deposited into a guardianship account and then disbursed or can the guardian cash them?
A business customer was paid by check payable to himself instead of the corporation for the services rendered on behalf of the corporation. Can that check be cashed against the business account OR can it be deposited in his corporate account?
What is the bank's liability when a customer claims a check that cleared their account is unauthorized, but due to the check design, the bank's image of the check does not show the customer's signature? (i.e. the design on the check just scanned black, covering up the signature). I know we could request the actual item from the depositing bank, but there is no set time that banks have to keep the actual check, and most probably destroy them within 30-60 days. If the customer doesn't report the unauthorized item before the actual check is destroyed, we would have no way to know whose signature was on the check. How would the customer sign an affidavit of forged signature if they can't even see the signature on the check?
What procedures or guidelines do you have for verifying funds over the phone with a merchant or FI?
I was reading a response to the "Non-customer Check Cashing" question.Must we cash a check drawn on us for an ex-customer? We recently placed a judgment against the payee (ex-customer). The check is properly payable, funds are available (the maker is a very good customer) and we can verify the payee. Are we required legally to cash the check?
Can a Credit Union put a stop payment on a cashiers check that has already been processed? Also do we have to accept that return or can we (the Bank) send it back to them?
Assume a customer has an account with us and writes a check to someone, and that someone uses the mobile banking deposit function on their account with Bank of America. They deposit that image to their account. Then they present the check to us for cash. When the inclearing item from B of A came into us, we return it as duplicate. The Fifth Third (our correspondence bank) is stating that we need to go to B of A to get our money back. I disagree. Please advise.
Our bank has begun operating ATMs which do imaged check and cash deposit. Our processor told us that ATMs not located at a branch location (i.e. remote ATMs) must accept deposits from non-customers. They can't cite law to that effect. Is this law, or just how they want us to do it?