Two weeks ago we received notice of a without entry breach of warranty from the drawee bank on a $16,510 check. The maker has sent an affidavit of fraudulent activity with an altered payee claim. The check cleared the account almost three months ago. Our depositor was not aware of this alteration and received the check by a mail lottery scam with their name in the payee line. We, the depositing institution, acted in good faith and accepted the check for deposit. Our depositor waited for the check to clear and withdrew the funds. We are now being ordered to pay the full amount of $16,510 back to the drawee bank. I have gone through all the UCC sections for presentment warranties, imposters, ficticious payees and negligence contributing to forged signature or alteration of instument. Are we held liable for this item? And did the drawee bank meet the timeframe to return the item?
I am an attorney representing [Name of Bank Removed]. One of the Bank's customer's presented a check, which he claimed was from an inheritance. The check was drawn on a foreign bank in Canada. The bank placed a 15 day hold. Two months later, the check was determined to be counterfeit. I am attempting to sue the customer for the amount owing. It is my understanding that the UCC does not apply due to the fact that it is a foreign check. I am contemplating suing under an unjust enrichment and fraud theory. Any other ideas regarding a cause of action against the customer?
Question: What is the bank's responsibility (versus a customer's) for a counterfeit cashier's check, versus a counterfeit US Postal MO versus a counterfeit personal check?
What is the bank's responsibility (versus a customer's) for a counterfeit cashier's check, versus a counterfeit US Postal MO versus a counterfeit personal check? I have read and researched the UCC but cannot find what I believe to be a clear answer.
I am processing a loan in which we are taking a purchase money security interest in a wedding ring. Does this fall under Reg AA for household goods and will a UCC-1 actually perfect the lien?
If we are not making the spouse sign the note, but we are making the spouse sign the security agreement, isn't our right to perfect the lien by filing a UCC or EFS affected?
Question: At your Security Seminar I attended I wrote a note to myself that says, "Delete reference to stale date - 6 months." But I can't remember what you said!
Question: We had a depositor who sold something over ebay, and came in with one of "those" checks that was for more than she was due.
Who is liable on a corporate check payable to a vendor that was stolen in the mail and the payee changed to an unrelated third party? The check was cashed and the funds were ultimately taken out of the corporation's account. Is the payor bank, drawee bank or the drawer corporation liable? Which UCC provision covers this situation?
Question: Our customer came in with a counterfeit check from his statement that we paid over three weeks ago.