02/04/2002
When a counterfeit check is not returned to the depositing bank within the required 24 hour period, who is liable for the loss, the drawee bank or their customer assuming the customer exercised ordinary care and notified the bank upon discovery during a timely bank reconciliation? There appears to be some evidence that the drawee bank can pass the risk of loss on all counterfeit checks to their customers through their deposit account agreement. However, this would appear to circumvent the banks responsibility to only charge a customer's account if an item is properly payable and signed by an authorized individual. Otherwise why even have a signature card?
02/04/2002
What are the information security needs of a bank?Which laws/guidelines deal with information security needs of the bank?What are the steps involved in designing a security policy for a bank?
02/01/2002
The Federal Trade Commission has proposed changes to its Telemarketing Sales Rule ("TSR") and asked for public comment. One of the changes is triggered by provisions in the Patriot Act.
01/07/2002
Does Reg E require a new disclosure by Jan. 1, 2002? I read that somewhere but can't seem to find any more info on the details.
12/03/2001
Can a licensed check cashing business be exempted from CTR filing? I have always thought if they were licensed it was OK to exempt them, but now I am getting conflicting information.
12/03/2001
To reassure my superiors, please clarify the information on your article in Bankers' Hotline<a href="http://www.bankersonline.com/articles/bhv11n07/bhv11n07a18.html">Volume XI, Number 7 </a>in the Q&A section. You are stating that the liability for forged endorsements falls on the depository bank. We have been physically reviewing endorsements on checks over $750.00. This policy has been in effect for some time. Would it be OK for us to change our "written" policy to not include reviewing the incoming checks?
12/03/2001
I work at a local community bank, where we know all of our customers real well. Question: A check payable to corporation, customer brings in to cash. He is signer on account. Is there a problem as to why we would not cash the check, since he is one of the signers.
12/03/2001
Is it allowable to xerox a person's driver's license photo? Some tellers were doing this for non-customers cashing checks at our bank, but another employee says we cannot do that.
11/05/2001
A longtime customer's employee has stolen checks from his business account. The employee was not an authorized signer on the account. Isn't there a provision in the UCC that says the bank is not liable for unauthorized signatures if the suspect is an employee?
11/05/2001
In the past year, my Bank has experienced an increase in losses due to bad checks (mostly because holds (1) are not being placed and (2) the hold is expiring before the check is returned. Management wants to implement a new hold policy where we place an exception hold on every deposited check that is not onus. I have told them they can't do this but they won't listen even when I explained the penalties involved. Any guidance?