I came across several checks while completing a forensic examination which had a blank or restrictive endorsement followed by a Prior Endorsement Guarantee (PEG) stamp. These checks were part of a forged endorsement of the true payee. They were deposited at the fraud perpetrator's depositary bank. Does the PEG stamp constitute a second endorsement? What liability, if any, exists between the depositary and the true payee for the use of this stamp on items containing forged endorsements?
What is the time period for a customer/bank to claim a forged endorsement?
After reading the question on forgery returns answered by Mary Beth Guard, it appears that this deals with forged maker's signature. Is this the same with counterfeit checks? I assume the liability on counterfeits also resides onthe drawer bank. However, in the case of forged endorsements, which are also being sent as without entry items (collections), it seems a little more complicated. Could you expand some to address these other issues?