We're trying to get our money and here are the facts. 1.Our customer has a loan from us. 2.Customers house burned down. 3.Insurance company issued check made payable to customer, Our Bank, and third part. 4.Customer endorsed check "For Deposit Only" and deposited in personal account at another bank. My question is, what is the time frame for us to recover funds from the other bank since the check was processed without our endorsement? I've been searching a UCC site and am still looking.

Thank you for any input.

Check with the insuror. You probably have a separate right to claim for the fire loss, to the extent that you're damaged by the loss of the house. If you are successful in pursuing your claim with the insuror, they will bear the burden of recovering from the insured.

There is a three year limit on endorsement claims on checks (most states).

My question would also be is your customer past due on his loan? Is the loan secured by the house? Have you contacted the insurance company and asked them to return the check for improper endorsement?