Can you tell me specifically about restrictions? A check made payable to XYZ Company is drawn on account number 12345, Regions Bank, XYZ Company. It is endorsed: XYZ Company, For Deposit only, account number 12345. It was presented and deposited into a different bank account: XZY Company account number 67891. Is the bank that took the check liable for cashing that check with the improper endorsement?
Yes. Once the payee files a claim with the issuer of the check that it didn't get the funds, the issuer's bank will file a claim to recover the funds. The depositary bank made a warranty that the correct party got the funds. If that's not the case, it will have to pay and attempt to collect from whoever got the credit.
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Yes. Once the 