Your source for the latest technology information of interest to credit unions across America.
Subscribe to our weekly e-mail newsletter and/or our monthly newsletter and stay on top of the latest technology trends in Hardware, Software, ATMs, Biometrics, Wireless, Online Banking, Marketing, Security, Internet Access and Call Centers.
Legal Issues of Checks
Understanding endorsements and handling checks is crucial to making sound check cashing decisions. A check is a unique type of contract where ownership can be transferred by way of the endorsement on the back of the item. This program will look at who has the right to endorse the back of a check, and where is proper endorsement placement. We will also look at what happens if a check is not endorsed properly, when it may be best not to accept the check at all due to missing or problem endorsements and why we do not put business checks into personal accounts and why we do not give less cash on business accounts.
Many "tricky" issues will be discussed, such as deceased accountholders, business accounts, endorsements for minors, income tax check endorsements, trustee endorsements, and endorsements by powers of attorney. Learn the safe way to handle checks and be sure that you and your FI can be protected from loss on the negotiable instruments.
You won’t want to miss this session! The information provided will produce confidence and a thorough understanding of the legal issues of endorsements.
- Who is the person entitled to endorse the check?
- What is a valid endorsement?
- Bearer versus Order Checks
- Who is the holder of a check, and what is the holder in due course?
- Ambiguous endorsements
- Endorsements for minors, deceased parties, business accounts
- Witnessed endorsements
- Check cashing issues for business accounts
- Endorsements on income tax checks
- Trustee and power of attorney endorsements
- The simplest rule about checks that will save your FI thousands of dollars
- The connections between checks and account agreements - if you have not signed the signature card you cannot get the money
- Postdated, stale dated, erasures, alterations and more lessons we need to learn
- Why your institution needs to know about the negligence rule and the statement rule
- Should we check endorsements and send them back as "missing"?
- Treasury checks, postal money orders and other special checks
- Why we absolutely do not give cash back, cash or deposit into personal accounts checks made payable to a business
Who Should Attend: This informative session is for tellers, head tellers, cashiers, managers, branch operations, bookkeeping, compliance officers who okay checks and deposit representatives who work with checks and accounts.
Speaker: Deborah Crawford is the President of Gettechnical which is a Virginia based training company. She specializes in the deposit side of the FI and is an instructor on IRAs, BSA, Deposit Regulations and opening account procedures. She has 30+ years of combined teaching and banking experience.
Legal Issues of Checks