Answer:
Answer by John Burnett:The same as it is for returning any check unpaid -- by the drawee bank's midnight deadline: midnight of the banking day next following the banking day on which the check was presented for payment.
Answer:
Answer by Ken Golliher: This "reason" for return is often abused. Some banks, in fair retaliation, automatically protest these items as "late returns" whenever it is not absolutely clear that the midnight deadline was met. So, if you fudge the timeframe, your chances of getting caught are good. Your own records will supply the proof necessary to shift the risk of loss back to your bank where it belongs.
The proposed revisions to Regulation CC openly contemplate eliminating "refer to maker" as an acceptable reason for return. Accordingly, banks would be well advised to begin weaning themselves from this practice and giving other banks a candid explanation for why an item is being returned unpaid.
First published on BankersOnline.com 10/15/12
print
share