Answer:
Regulation E addresses electronic fund transfers. The rights, responsibilities and duties of banks and their customers regarding checks are addressed in the appropriate state's Uniform Commercial Code (UCC), and in deposit account contracts. Regulation E is a consumer protection regulation; the UCC is not a consumer protection law.
That said, if push comes to shove in a court case over stolen and forged checks, the court is likely to consider whether the police report would have any bearing on whether a given check was authorized by your depositor.
First published on BankersOnline.com 6/13/11