Our customers are provided endorsement stamps that dictate the routing of all returned checks to our bank account. Can this returned item endorsement be qualified, that is, can the endorsement state that the return endorsement for returned item funding be set up to be valid for amounts less than a specified amount, or must all returned item money be accepted?
You can try it, but be aware that the endorsement stamp instructions may be ignored. In fact, you have probably found that some paying banks may be ignoring the return item instructions that are currently included in endorsements, and they are simpler than any "greater than $X only" instructions could be. Regulation CC directs paying banks to send return items to the bank of first deposit when its endorsement is legible, and any adherence to instructions in a customer endorsement is already a departure from the regulatory requirement, albeit one with which the depositor and depositary bank are in agreement.
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You can try it, but be aware that the endorsement stamp instructions may be ignored. In fact, you have probably found that some paying banks may be ignoring the return item instructions that are currently included in endorsements, and they are simpler than any "greater than $X only" instructions could be. Regulation CC directs paying banks to send return items to the bank of first deposit when its endorsement is legible, and any adherence to instructions in a customer endorsement is already a departure from the regulatory requirement, albeit one with which the depositor and depositary bank are in agreement.
