Skip to content

Returning Check Not Endorsed Over to Corporation

Answered by: 

Question: 
An individual deposits a check made out to himself into a checking account owned by his closely held corporation. The check was not endorsed over to the corporation. If the check is returned, can we legally charge it back to the corporation?
Answer: 

Yes. Section 4-214 of the Uniform Commercial Code gives you chargeback rights if you've given your customer credit for the item, and those rights aren't affected by the fact that the customer had not endorsed the item.

First published on BankersOnline.com 7/15/13

First published on 07/15/2013

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics