Deadline For Returning Forged Signatures

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Question:

A customer came in and singed an affidavit of unauthorized signatures. According by- laws can we return these checks. The checks were forged on 5-21-02 and 5-17-02 the affidavit was signed June 7th 2002. The checks were deposited in another bank. According can we return these checks? What is the time framed for signatures that are forged.

Answer:

Assuming that your deposit customer is claiming that his/her (the drawer's) signatures were forged, you've gone past the deadline.

The deadline for forged, unauthorized or missing signatures of the drawer is the business day following presentation.

In general, that's the deadline for anything that you should be checking that has to do with your deposit account and your relationship with your customer, such as balance, stop payments, drawer signature, date. It does not affect things outside your ability to determine, such as endorsements.

First published on BankersOnline.com 8/12/02