Time Frame to Reject Return of Counterfeit Check

The paying bank became accountable for the amount of the check when it held it longer than midnight on Wednesday, February 29, 2012. Its return of the check on March 5 is a late return. Assuming that the return was handled via the Federal Reserve, the depositary bank now has a window of two calendar months from the date of the return item cash letter to submit a late return claim via the Fed. After two months, you can make a without entry claim directly with the paying bank.

First published on BankersOnline.com 5/21/12