Soulution
06-24-18, 06:13 PM
Hello all!
I just opened an account with a local bank a couple weeks ago with the redemption verbiage added in the signature card. I feel like I have been studying lawful money pretty thoroughly for the past few months, and that I have a firm understanding, but I still have doubts. These doubts could just be because I am nervous/excited.
It was quite the learning experience! I walked into the bank and asked to setup an account. They sat me down with an employee who helped me get everything in order. When handed the signature card, I used one of the examples found in this video (https://www.youtube.com/watch?v=tUXWaizMuFo) - "All transactions redeemed in lawful money per. 12 U.S.C. 411" -
I admit I should have used my own words instead of "copying and pasting" and this means I was probably not as prepared as I had thought. Regardless, the employee looked everything over without expressly acknowledging the signature card, and we proceeded with getting the account established. After the account was setup, and I was on my way, a different employee (likely the manager/supervisor of the employee helping me) stopped me and asked about my signature card. She was concerned by it, and asked me to explain what I meant by it. I told her that it was the type of endorsement I wished to use for the account. I think she was more concerned with "All transactions" more so than she was with the lawful money aspect of it because she responded by telling my that the bank was not liable if any transactions did not abide by my demand. What she told me (paraphrasing) was that the Check 21 Act (https://en.wikipedia.org/wiki/Check_21_Act) Public Law 108-100 (https://www.gpo.gov/fdsys/pkg/PLAW-108publ100/html/PLAW-108publ100.htm) allowed the bank to process digital checks and to convert paper checks to digital checks, which results in group, or rapid, processing. This means that there is not someone looking at each individual check. She also said that banking has changed since 9/11, but did not give any further examples of how. So, it seems to me that she was clarifying the bank not having liability if a check went unnoticed, and not redeemed for lawful money. Also, in my contract with this bank under the DEPOSIT RULES they state that "[W]hile we may accept non-conforming endorsements, you will be responsible for any loss incurred by us due to the delay in processing or returning the item for payment."
I understood lawful money, and the redemption thereof, to be more of an accounting and tax issue instead of something more tangible like actually receiving different notes. Having the redemption verbiage on my signature card makes this account a lawful money account, correct? Further, all deposits into this account will be redeemed in lawful money regardless of paper check, remote deposit, direct deposit, etc., correct? I receive paper checks from work and will write the redemption on the rear with my signature for the sake of being thorough.
I truly appreciate the people at StSC! You all are such intelligent people, and very generous with what you know. I hope to be able to contribute, and be a productive addition to this group soon!
Thank you all very much, Ryan
5132
I just opened an account with a local bank a couple weeks ago with the redemption verbiage added in the signature card. I feel like I have been studying lawful money pretty thoroughly for the past few months, and that I have a firm understanding, but I still have doubts. These doubts could just be because I am nervous/excited.
It was quite the learning experience! I walked into the bank and asked to setup an account. They sat me down with an employee who helped me get everything in order. When handed the signature card, I used one of the examples found in this video (https://www.youtube.com/watch?v=tUXWaizMuFo) - "All transactions redeemed in lawful money per. 12 U.S.C. 411" -
I admit I should have used my own words instead of "copying and pasting" and this means I was probably not as prepared as I had thought. Regardless, the employee looked everything over without expressly acknowledging the signature card, and we proceeded with getting the account established. After the account was setup, and I was on my way, a different employee (likely the manager/supervisor of the employee helping me) stopped me and asked about my signature card. She was concerned by it, and asked me to explain what I meant by it. I told her that it was the type of endorsement I wished to use for the account. I think she was more concerned with "All transactions" more so than she was with the lawful money aspect of it because she responded by telling my that the bank was not liable if any transactions did not abide by my demand. What she told me (paraphrasing) was that the Check 21 Act (https://en.wikipedia.org/wiki/Check_21_Act) Public Law 108-100 (https://www.gpo.gov/fdsys/pkg/PLAW-108publ100/html/PLAW-108publ100.htm) allowed the bank to process digital checks and to convert paper checks to digital checks, which results in group, or rapid, processing. This means that there is not someone looking at each individual check. She also said that banking has changed since 9/11, but did not give any further examples of how. So, it seems to me that she was clarifying the bank not having liability if a check went unnoticed, and not redeemed for lawful money. Also, in my contract with this bank under the DEPOSIT RULES they state that "[W]hile we may accept non-conforming endorsements, you will be responsible for any loss incurred by us due to the delay in processing or returning the item for payment."
I understood lawful money, and the redemption thereof, to be more of an accounting and tax issue instead of something more tangible like actually receiving different notes. Having the redemption verbiage on my signature card makes this account a lawful money account, correct? Further, all deposits into this account will be redeemed in lawful money regardless of paper check, remote deposit, direct deposit, etc., correct? I receive paper checks from work and will write the redemption on the rear with my signature for the sake of being thorough.
I truly appreciate the people at StSC! You all are such intelligent people, and very generous with what you know. I hope to be able to contribute, and be a productive addition to this group soon!
Thank you all very much, Ryan
5132