If the checks were not properly payable and you paid them anyway, I am not sure that extends your midnight deadline. But I am not sure we have enough facts. I would sit down with your legal counsel.
Fake Checks w/o Payee or Endorsement
A corporate customer's account was recently compromised. Information from an authentic check was used to create fictitious checks. Numerous $100 checks were negotiated. The fake checks don't include a payee name. In addition, the checks don't have any type of endorsement. If we consider these checks bearer instruments, and no endorsement is required by UCC, do we have any recourse with the institution who processed the (fictitious) checks, or is the loss on our side since the customer failed to identify the fake checks in time for a timely return?
First published on 09/12/2021