Pub. 1 2012 Issue 7

How long should I wait to know the check is “good?” It is almost impossible to tell when you have waited long enough. It is possible to be liable for the check for several years. Just because an account is credited and the bank releases any holds on the funds does not mean that the check is good. It is possible under normal circumstances for a check drawn on another U.S. bank to be returned for a forged maker’s signature two weeks after the deposit is made. If the check is drawn on a Canadian bank, the check can be returned several months later. If it is a fictitious check drawn on the U.S. Treasury, the credit can be reversed many months after the check was deposited. However, waiting weeks or even months is not always safe. If a legitimate check was stolen from the mail and then altered, the check can be returned for three years, or more, after it was deposited. When the check can be returned to the depository bank, the depository customer will be liable for the check. How can I verify that a check is “good?” It is almost impossible to tell if a check is “good?” It is often possible, however, to verify that the check is definitely invalid. If the check is drawn on a phony account or is a phony cashier’s check, contacting the bank it is alleged to be drawn on may help determine that it is worth- less. However, if you contact the bank, they cannot tell you whether or not the check was stolen from the mail and altered. Only the maker of the check can provide that information. You may be able to contact the maker of the check directly; however you should never use a phone number listed on the check. You will need to independently locate the phone number of the maker. However, even if you do all the verification possible, there is still a possibility that the check could be returned years later, and you will be stuck. Too Good to be True? Most of these scams fall into the “too good to be true” category. If it seems to be too good to be true, it is. The crooks take advantage of the fact that even their skeptical victims often can’t figure out how they are being scammed. Whenever you negotiate a check, you have the potential for long-term liability. If you are being asked to cash a check for a stranger and send someone part of the money, you are being scammed. Don’t do it. The Bottom Line When a check is cashed, your bank often allows the funds to be with- drawn within a few days. However, if the check is not valid, the depositor can be liable for the check for a very long period of time. You need to be skeptical of any check received from a stranger. If you are asked to deposit a check and send some of the funds to others, simply refuse. It could save you from a long-term financial mess. This article may be reprinted by any bank to provide to its customers. For more information, please give us a call at (785) 228-0000. 14 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s AD INDEX ATM Maintenance Integrated Coating Systems......................................pg 21 Banks Bankers Bank of Kansas (BBOK)..............................pg 2 First Bankers’ Banc Securities, Inc.......................... pg 31 First National Bank of Hutchinson........................... pg 30 INTRUST Bank........................................................pg 21 Certified Appraisers/Consultants Marketing & Consultant Services, Inc ..................... pg 30 Core Processors DCI........................................................................... pg 32 CPA/Accountants BKD............................................................................ pg 3 Education Graduate School of Banking University of Wisconsin – Madison...........................pg 7 Financial Services BankOnIt....................................................................pg 6 The Kansas Bankers Surety Company..................... pg 24 Pulse......................................................................... pg 15 Government Kansas State Treasurer.............................................pg 27 Integrated Services Diebold....................................................................... pg 5 continued frompage 12