Quote Originally Posted by hvncb View Post
I am new as well. I have already endorsed two checks via 12.411 and have the same questions to 'correct' previous redemptions to lawful money. Having read Mr. Merrill's comment that 'bank relied on our signature, etc' and part of me agrees it may be "water over the bridge" Nonetheless, question remains in my mind how UCS 12.411 applies ONLY at time of endorsement: "They shall be redeemed in lawful money on demand..." this is open ended; ie, it does not state a specific time, event (endorsement) or has expiration period. Why not deposit a check w/ naked endorsement, take Fed Res notes and then demand 'lawful money'...who will say "oops, sorry, too late!".......also saw part of another post "By the time you are holding cash, you have already made your demand.." again...why is it too late?...not clear. regards!

There are a couple suitors who have no choice but to try it. They just cannot submit to a payment plan for the remainder of their days. So I am helping give them a shot at it. The sad part about it is that if you have been endorsing private credit from the Fed, that is your signature bond. All you have is ignorance of the law to plead in order to get your money back. If they are penalizing you though; the new $5K frivolous penalty fines, I feel that there is some good chance you can shut that up. You really don't owe them a penalty when you are the victim of fraud by omission!

So get straight about making your demand for lawful money first. There is no harm whatsoever and you do not need to be very brave to start writing a non-endorsement on your paychecks and Signature Card. It is not until April 15th that you have to decide if you are going to be brave.


Regards,

David Merrill.