Also why checks no longer have a time limit as to when they can be returned, and why you no longer get your original "paid" check back in your monthly statement.
I was a banker most of my life, albeit most of it on the technical side and I don't agree with this. In almost all circumstances banks have very tight deadlines for returning checks.
Anymore almost all checks are held at the point of deposit or even by the depositor. Very few checks make it to the bank on which it is drawn, everything is imaged based. So it is practically impossible to return checks with a statement even if the bank wanted to do so.
Also remember this is a Chapter 11 Bankruptcy (Reorganization), not a Chapter 7 (Liquidation)
They changed the rules years ago, again why you don't get your checks back, and why banks now require so much info on an account holder ( under the cover of fighting terrorism?), because if a claw back occurs, the bank does not want to left with no recourse. You probably have many current banking friends that can verify this, don't think I favor it one bit. I think the general public confuses bank "holds" with checks clearing. Also if fraud is part of the bankruptcy, the 180 day limit is waived till whatever the statue of limitations are for the alleged crime.
I have only been retired two years, but I am going to spare the others all the dead horse beating. In my opinion you don't have all your facts straight. Your opinion of my view is probably the same so let's just leave it there.
We could, but somebody is mistaken, and if it's me, I want to know. You sound like you have a better/faster back channel to get to the facts. That option being declined, I will dig further. My difficulty, when I submit this question, my gut feeling is those who really know, prefer not to have full disclosure, as keeping the public selectively uninformed is to the banking worlds advantage,
Just to be clear, the issue is, as I see it here, "is there a time limit as to how long a deposited check can be returned to the originator?".
I'll get right on it.
1st discovery subject to 60+15 day limits
What is the Purpose of Rule 9?Forged and counterfeit items are sometimes recognized
by bank customers after the midnight return deadline.
Rule 9 allows the Paying bank to file a claim to recover
from a fraudulent item after the UCC midnight return
deadline. Rule 9 shifts responsibility, in some cases,
from the Paying bank (as assigned in UCC Article 4
(4-407 & 4-408) to the depositor when there are sufficient
funds in the depositor’s account.
Why Shift Responsibility?
Checks are no longer processed as in the past:
Financial institutions (FIs) no longer verify signatures
on all checks.
Checks are collected using digital images so the
Paying bank never sees the paper check.
Items can be remotely deposited so even the
Depositary bank does not see the physical item.
