One of our customers took a check made payable to her husband John Doe and XYZ, forged his signature/endorsement and endoresed her name to deposit into her account. Husband not on account. Husband who is now ex-husband has brought in a copy of the check in question (obtained by issurer)stating his now ex wife forged his name. Upon researching the transaction our bank was at fault for taking the depoist with out XYZ's endorsement. My question is what is the statute of limitation given this scenario? Is it three years as outlined in the UCC 3?

A claim for a breach of warranty is governed by section 3-118(g) of the UCC and, under the model language, the time frame is three years. I do not have access to Tennessee statutes today, but I believe Tennessee went with the model time frame...

Banks should do their job and make sure checks are improperly endorsed. When they fail to make sure checks are properly endorsed they should be held accountable.