IBA Compliance Connection

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We are installing new, deposit-capturing ATMs. Do deposited checks need to be endorsed? We are concerned because the machine does not check for or require endorsements before depositing checks.

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Deposited checks do not need to be endorsed under the UCC, though it may be a good policy to require endorsements. Under Section 4-205 of the UCC, a bank is entitled to enforce a check or item that the customer delivers to the bank, “whether or not the customer indorses the item.” 810 ILCS 5/4-205.