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Claim of Late Return-How Many Days?

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Question: 
We returned three checks that were written on 8/22 and 8/23 as forgeries. Today, I received a claim of late return. I thought we had 60 days to return these; can you please clarify the parameters for this?
Answer: 

Under your state's Uniform Commercial Code 4-301, the paying bank must identify and return a check with a forged maker's signature by midnight of the business day following the date the item was presented for payment unless you and the bank of first deposit participate in a a common clearinghouse that has different timeframes established for participating institutions.

If these items were returned through the Fed, then they are definitely late returns and the liability rests with your institution.

First published on 10/06/2019

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