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Depositing Check for LESS Than Face Value

Answered by: 
John Burnett
Brian Crow
Ken Golliher

Question: 
Can a business deposit a check for less than the face value of the check? We have had a check return twice due to NSF. We have the ability to verify funds prior to deposit and we feel that if the check were for a smaller amount it would clear. Is it legal to deposit a check for LESS than its face, and if so, how would one do that?
Answer: 

If the business is resubmitting the item as an RCK, NACHA rules prohibit the item from being submitted for any amount other than what is on the source document. Similarly, your state's Uniform Commercial Code would prohibit the altering of a dollar amount of a check. If the business wishes to attempt to attempt to deposit a check of lower value from this client, it must obtain a new check.

First published on BankersOnline.com 9/3/12

First published on 09/03/2012

Filed under: 
Operations
Filed under operations as: 
IT

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