Check Endorsements- John Doe by Mary Doe

Answered by:

Question:

I have a question about check endorsements. For example, assume a check is made payable to John Doe. Mary Doe brings in check to cash and endorses it John Doe by Mary Doe. John Doe doesn't appear to be our customer. We have no way of knowing if Mary Doe has authority to sign for John Doe. Should this check have been cashed?

Answer:

Without a valid POA that endorsement is meaningless.