24H Deadline to Return Counterfeit/Forged Payee?

The Midnight Deadline is literally midnight of the banking day next following the banking day of presentment of an item. For a check presented for payment on Monday (generally reviewed for pay/return decisions on Tuesday), the check must be on its way back to the depositary bank by 11:59 pm local time on Tuesday. If the check itself cannot be returned, then a notice describing the check fully or a legible image of the check may be returned in lieu of the check.The midnight deadline applies to counterfeit checks and forged drawer's signatures. It does not apply to forged, missing or fraudulent endorsements, since the paying bank isn't able to discern such problems with information under its control.

First published on BankersOnline.com 3/11/13