Counterfeit Checks & Collection Letters: Time Limitations

Question:

What is the time limitation on Counterfeit checks on without entry/or on a collection letter? What is the time limitation on forgery signature?

Answer:

If I understand your question correctly, a bank has until midnight of the banking day following the banking day of presentment to return a check for a forged drawer's signature. Generally, the same time frame would be applied to a counterfeit check because its fundamental defect is that the drawer's signature is forged.

First published on BankersOnline.com 9/2/02