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#14725 - 11/30/07 03:24 PM check signed by unathorized signer
Anonymous
Unregistered


An old landlord of mine was holding two checks of mine (my company's actually) that my business partner had written to him and signed for some back rent. When we left the premises we agreed that he would use my last month's rent and security deposit as payment and to void those two checks. Long story short, my business partner never cancelled the checks and 2 months later (4 days ago). I saw that he cashed them. HERE'S THE CATCH - it turns out that my business partner (who signed the checks) is NOT a signer on the account! The bank did not catch this and withdrew the funds anyhow. Is there anything i can do??? The other thing is - she has signed many checks from this account, including the withdrawal of funds all because we thought she was a signer - but for some reason never filled out a signature card. We were not aware of this mishap until she tried to withdraw money 3 days ago and the bank denied her (for the first time) saying she was not a signer.

Is there anyway we can dispute those 2 checks my landlord cashed since technically she is not a signer on the bank account?

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#14975 - 12/27/07 07:01 PM Re: check signed by unathorized signer [Re: Anonymous]
Anonymous
Unregistered


You should contact your bank and ask them to return the checks since your partner is not a signer. At this moment your bank may ask you to file a police report and I am not sure that you want to do that, since she signed checks before.

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#15404 - 01/31/08 05:47 PM Re: check signed by unathorized signer [Re: Anonymous]
John Burnett Administrator Offline
Compliance is my life

Registered: 10/27/00
Posts: 12642
It's too late for your bank to return the checks. And your bank has an excellent counter to your claim of unauthorized payments. By allowing transactions over your business partner's signature, you in effect could be said to have ratified the payments. You only get a reasonable time to enter claims for unauthorized payments of this type. And "reasonable" could be as little as 30 days from when the first unauthorized payment showed up in a statement.

If you have an attorney friend, ask him or her to discuss your case with you in light of the Uniform Commercial Code, section 4-406, as enacted in your state.

And by the way, not to rub salt in your wounds, but isn't it a bit ironic that you expect the bank to have caught the unauthorized signatures when even you thought your partner was authorized to sign on the account?

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