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Reg on Absence of Endorsement Guaranteed Stamp

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Question: 
Our Holding Company has recently collapsed multiple charters and set up regional offices. Each bank prior to the collapse had their own transit routing number and were similarly named: EXAMPLES: XYZ Bank N.A. Who,Texas (the surviving charter bank) 1113-1111-1 or XYZ Bank N.A.What,Texas formerly 1113-0000-0 now a regional office. On the Absence of Endorsement Guaranteed Stamp, the regional offices would like to continue to put their City State as they have in the past with the new TR# of 1113-1111-1. Is that permissible or do they need to show the City State as it matches the surviving charter? The regional offices would like to there is only one transit routing number 1113-11111-1 but the regional offices are wondering if on the Absence of Endorsement Stamp they can use the new transit routing number but still use the XYA Bank N.A. Athens, Texas and not the Tyler Texas charter name. Example below: CREDIT TO THE ACCOUNT OF THE WITHIN NAMED PAYEE ABSENCE OF ENDORSEMENT GUARANTEED XYZ BANK N.A ATHENS,TX rather than TYLER, TX which matches the TR# 1113-1111-1 I can't find any Reg language to answer this.
Answer: 

You won't find any regulation on this question because those old Absence of Endorsement Guaranteed stamps have been outmoded. They simply are not needed any longer.

Take a look at Texas UCC section 4-205. You'll see that when your bank is given an unendorsed check by a depositor, and you send it forward for collection, you obtain holder (or holder-in-due-course) status and make a warranty to those in the collection stream that your customer obtained money or credit for the check. That, I submit, is all that your outmoded stamp ever did for you.

First published on 09/23/2013

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