Question & Answer

Question: How should we treat a check that was returned for a missing endorsement when the customer brings it back to the bank properly endorsed? Is this subject to any exception holds?

Answer: When that check comes in, you should treat it like a new item. What was missing was in the payee's control, not the drawer. So you have no reason to be concerned about the check itself. As long as no other hold exceptions apply to the customer - such as excessive overdrafts - you should treat the check as a routine item.

Copyright © 1998 Compliance Action. Originally appeared in Compliance Action, Vol. 3, No. 9, 7/98