TJ Vargas signed the back of his checks for deposit and then lost them on the way to the bank. When he contacted the issuers of

Question

3 years ago

14

TJ Vargas signed the back of his checks for deposit and then lost them on the way to the bank. When he contacted the issuers of

the checks to try to have them reissued, he discovered that the checks had already cleared. How could he have made a restricted endorsement to ensure that they would get deposited only into his account?
a. For Deposit Only. TJ Vargas.
b. Pay to the Order of TJ Vargas.
c. For Deposit Only (3846933720). Midwest Bank. TJ Vargas.
d. Pay to the Order of Midwest Bank. TJ Vargas.

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1 answer:

Diano4ka-milaya [45] · Answer 1 · 2022-04-25T14:53:03+03:00

Answer:

c. For Deposit Only (3846933720). Midwest Bank. TJ Vargas.

Explanation:

When TJ Vargas signed on the back of the check for deposit, he did not specify a particular bank account or was to be paid to.

If a fraudster stole the check and put another account number, the bank will be obligated to transfer to the account they see on the back of the check.

To ensure the endorsement instructs the bank pay only to his account he has to sign for deposit and in addition provide the account to be credited.