My bank requires proof of endorsements on all parties when I deposit a two/three party check. I have been asked to provide info on all payees and their endorsements to assure the payees would receive benefit. Is this practice common among all banks?
Banks in general have gotten much stricter in accepting for deposit any check with multiple payees or with multiple endorsements. They have done so because of the potential for an endorsement to be invalid because of a forgery. Forged endorsements create a possible three-year period during which a bank could be pressed to honor a warranty that all endorsements are genuine and authorized, so many banks, wishing to avoid risk, are clamping down on multiple endorsement checks.
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Banks in general have gotten much stricter in accepting for deposit any check with multiple payees or with multiple endorsements. They have done so because of the potential for an endorsement to be invalid because of a forgery. Forged endorsements create a possible three-year period during which a bank could be pressed to honor a warranty that all endorsements are genuine and authorized, so many banks, wishing to avoid risk, are clamping down on multiple endorsement checks.
