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?
When using the rate spreadsheet for possible HOEPA loans and the loan term is not exactly 1,2,3 years, say 52 months, should we use 4 years or 5 years, what are the rules for rounding?
If you have a business exempt as a Phase I and they are currently going through a reorganization, should you remove them as a Phase I Exemption?
The federal financial institution regulatory agencies have issued joint guidance on what constitutes an information security breach and how such a breach should be handled.
Question: Is there anything in the law or regulations that specify that a customer may not receive a copy of any CTR that contains his/her name?