Postdating a

Postdating a

The effective length of the notice is just like a stop payment order.

In order to protect itself, therefore, a bank must build language into its deposit account contract to limit its liability.

If the customer has made a claim alleging that the check was stolen, you will want to determine if the endorsement has been forged by a thief. If an enforceable claim is made under Section 3-312 and the check is later presented for payment, you do NOT return it stop payment.

You return it marked, "Not properly payable due to enforceable claim made under UCC 3-312."Give the money back only on the condition that the customer post an indemnity bond or sign an indemnification agreement to protect you in the event the check shows up and gets paid before the claim becomes enforceable.

Now it's three years down the road and the two of them are getting a divorce.

For the first time ever, he writes a check on the account.

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The claim only becomes effective if the item is not presented for payment and paid in the meantime.

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