We have a bank that is requesting payment because they have a forgery. The forgery is of the drawer's signature. The bank did not send the check back within 24 hours and admits that it was a late return. They keep telling us that under UCC rules they have one year to recover the money from the Bank of First Deposit because the customer has one year to report a forgery. It is my understanding that they did not return the check in a timely manner and their bank is the one out the money. They could have checked their signature card for the proper signature and returned within the deadline. Their customer was out of town and they could not verify with their customer that the check was forged. Their response back to us is that we are the endorsing bank, therefore we are responsible to them for payment. Who will be the loser on the money?
We have a loan to John Smith secured by a CD in the name of John Smith and John Smith dies. Can we lose our lien position to other governing laws concerning the estate of the deceased person, sole survivorship rights, or the Will of the deceased?
I know you can't "stop payment" on a cashier's check but you can "refuse to pay" if the remitter or payee asserts a claim in writing because the check is lost, destroyed or stolen? Can we charge the customer our Stop Payment Fee of $20.00 for this service or would we have to change our Schedule of Fees to include a "Refusal to Pay" fee before we could charge for this service?
In a community property state, in regards to married couples, do both spouses have to sign the UCC2 to perfect our lien or will one signature suffice as long as they both sign the security agreement?
The hurricane season is almost over. But that doesn't mean the financial storms have passed. Your worst problems may lie ahead if you are not careful.
Question: In one of your past issues on the Question and Answer page you addressed the problem of the bank that cashed a counterfeit check.
Our DDA statements state that if the customer does not dispute the information within 10 days of receiving it, it is considered correct. We have a customer that claims a girl friend forged his name to checks going back to January 2005. Are we obligated to reimburse him for this money?
Question: At one of your Security Workshops you presented some information on UCC 3 and 4 amendments including a statement you made about "stale dated checks".
Question: We have had a discussion on whether or not we should be checking the date and amount on checks that come in for payment that our customers have had printed that say right