Who is Liable, Bank of First Deposit or Payor Bank?
by John Burnett, BOL Guru Guru BIOS Question: My corporate client has had a co-payee forge my client’s endorsement on a check made payable to the two corporations. The client has instituted suit against the payor bank and not the bank of first deposit. Is this a valid claim under the UCC, or is the payor bank free from liability? Answer: It’s a valid claim, and the paying bank will join the bank of first deposit in the suit, based on that bank’s endorsement and/or presentment warranties. First published on BankersOnline.com 3/7/05 Home | Compliance | Lending | Operations | Security | Marketing | Technology | eBanking BOL Archives Privacy Policy Important Disclaimer Recommend This Site ! Contact Us BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through t
