Answer:
Answer by Randy Carey: Unless the meaning of the restrictive endorsement is addressed in your State law, the endorsement really has no meaning.
Answer:
Answer by Sonja Kriegsmann: Information about endorsements can be found in your State's UCC at sections 3-204, 205, and 206. The depositor may be trying to use a qualified endorsement such as this to limit their liability. You might check what your deposit account rules say about endorsing items. They may support a decision not to accept items endorsed in this manner, although catching them may be a challenge. You may want to chat with management or an attorney about the risk to the bank of accepting this type of endorsement and if that is something the bank is prepared to do.
First published on BankersOnline.com 6/3/13
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