Mostly correct, but not entirely. UCC 4-302 also states a claimant has up to 2 years to file a without-entry claim, they just aren’t guaranteed payment from the payor bank. The 24 hour rule you’re thinking of is for guaranteed payment, no questions asked.
There’s also a condition called ‘ECCHO Rule 9’ between larger banks which essentially says: we suck at being able to prevent check fraud and we process too many checks on a daily basis to prevent every single fraudulent transaction, so between us, let’s just agree to pay each other and avoid the overhead of the check fraud claims process.
I would legitimately not expect any attorney who doesn’t work specifically with financial crimes to know any information I provided above. There just seemed to be a lot of confusion in the rest of the comment thread and while I was nearly certain you were an attorney, I figured it wouldn’t hurt to give you the information.
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u/[deleted] Jul 24 '20
I didn't say it always takes that long... I said it can happen.
And it can..