What is the liability of a collecting bank for accepting a check that is endorsed, but not as drawn?
If the wrong person obtained the proceeds of the check, the issuer of the check can make a claim against its bank which ultimately results in a claim on the bank that accepted the check for deposit. To start the chain of events in motion, the payee of the check has to provide the issuer of the check with an affidavit stating that the payee did not endorse or obtain any benefit from the check, and ask for the payment that has not yet been received. The depositary bank's liability is based on its warranty that it had the right to enforce the check, which it could not have if the payee didn't endorse it.
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If the wrong person obtained the proceeds of the check, the issuer of the check can make a claim against its bank which ultimately results in a claim on the bank that accepted the check for 