Answer:
If the check was handled by the Fed, the depositary bank has two calendar months from the date it is charged for the returns to make a late return claim. You would be charged for the share drafts once again, and you'd have twenty calendar days from the Fed's charge to your account to disclaim liability for the late return.
The drafts hit the account on 6/8. Your midnight deadline for return was the end of the day on 6/9. You returned the checks eight calendar days late. While you were probably obliged to reimburse your customer for the checks, you didn't have return rights.
First published on BankersOnline.com 9/27/10
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