Depository Bank Response Time for Breach Claim

Question:

We submitted a breach of warranty claim regarding a forged endorsement on a check for $169,338.01. We submitted an indemnified copy of the check along with the signed and notarized affidavit of forgery. We are located in New Jersey. How long does the depository bank have to respond? They say that they have 90 days.

Answer:

Breach of warranty claims and related time frames are a part of the UCC. Although it is a uniform law, as each state adopts it they may tweak it a bit, making each state's version likely to be slightly different. The answer to your question will depend upon your states UCC, so I would suggest that you talk with an attorney that is familiar with the New Jersey UCC.

First published on BankersOnline.com 5/13/13