Answer:
If it is to be handled as a “return item,” you have until your midnight deadline under the UCC, which means sending the check on its way back to the depositary bank by midnight of the business day that follows the banking day on which the check was presented for payment. If the customer on whose account the check was drawn later claims the check was not authorized to be paid to the identified payee or for the stated dollar amount, the paying bank can give notice of a claim for breach of warranty within 30 days to avoid reducing the claim amount.
If the claim is made more than 30 days after the paying bank learns of its customer's claim that the check was not authorized, the obligation of the depositary bank is reduced to the extent of any losses it sustains as a result of the delay.
The claim under Regulation CC cannot be made more than one year after the fact are known to the paying bank. This period may be shortened in some states that have a shorter claim period under UCC section 4-406, such as Florida and Georgia.
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