Those of you that allow your business customers to use a signature stamp to endorse their business checks do you also have them sign some type of indemnity agreement that releases the bank of any liability in the event of misuse/loss of the stamp? If so, would anyone be willing to share your agreement with me? I would love to check this one of my list of things to worry about!

Why would a business customer use a stamp of their signature. First, a business cannot sign its name, only a person can sign their name. Businesses usually endorse their checks with an endorsement stamp that says "for deposit only".

Whether or not they endorse the checks at all does not change the fact that you warrant to all future endorsers that the proper party got the benefit. If that did not really happen, you will get the check back and have to be made whole by your customer.

I must be confused by your question.

Al

Sorry..I guess I wasn't clear on my question. The business owner is giving one of his employees (a non-authorized signer)a rubber stamp with his signature on it so she can write checks and stamp his name on the signature line.

The use of facsimile devices (stamps) should be governed by your deposit agreement.