Two Party Check

Not open for further replies.


New Member
A security deposit check from my previous renting complex which had my name as well as my exgirlfriends name on it was sent to her address as requested. However she took the check to a bank (which I do not know) without my consent signed only her name on a two party check and deposited it in her account. I was not their to sign nor give consent to this action. Now the money which belongs to both of us is in her account and my attempts to contact her are being unanswered. The people who sent the check did their part however whatever bank she cashed it at illegal cashed the check. She is banked with Wachovia and they checked her account through their fraud department and saw that there was no record of it in her account meaning she has deposited it in another bank. The bank which the renting complex go through is Bank of America they are not give me any information on the check and say they cannot help me.
She shouldn't have been able to deposit the cheque without your signature, and the bank she deposited it to should not have been able to negotiate the cheque (i.e. receive the funds from your rental company's bank) without it either. So two bad things happened. This is called "breach of presentment warranty".

Furthermore, the rental company's bank should not have honoured the cheque when the deposit bank presented it without both signatures. Somehow they did. I suspect the fact that they did something bad too is why they are reluctant to give any information. (And let's not rule out the possibility that she simply brought it back to Bank of America and cashed it. In which case BoA really screwed it up.)

You need to find out where it was deposited so you can correct the matter. The only way to do that is to get the information from the Bank of America. I suspect that what might happen is you have a claim against Bank of America for improperly paying out on the cheque. They are entitled to recoup the loss from whatever bank presented it to them for payment for breach of presentment warranty.

There's an interesting (but complicated) discussion of presentment warranty and two-party cheques in First Natl. Bank & Trust Co. of the Treasure Coast v. Belmont Natl. Bank (Ohio 2001) , here:
Not open for further replies.