Answer:
Answer by John Burnett:
The account number is merely a notation. It means nothing when it comes to enforcing the endorsement on the check.Since the check was neither payable to the business nor endorsed by the business, the business is not liable on the individual's endorsement.
At most, the business' account number on the back of the check will (perhaps) tell you where you can try to reach the individual who endorsed the check.
Answer:
Answer by Ken Golliher:
Nothing to add to what John said, just want to make certain you believe he is right. Tellers are trained to write account numbers on the back of a check only to prove they verified that the payee is a customer. It is not a grant of authority to charge a returned check against an account - that has to come from your contract or state law as a right of offset.
In your example, the payee is not a customer, but a corporation that he is connected to is - you do not have right of offset. The fact that I sign on a corporate account with your bank should have no effect on your willingness to cash a check payable to me.
First published on BankersOnline.com 3/24/03
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