Legal Question in Credit and Debt Law in Virginia

Bounced Checks

Two checks (cumulative over $300k) were written from a brokerage account, it was signed by a one of the joint account owners b/c of the death of the other account owner. The checks were deposited but then the brokerage stated that signature was not recognized b/c the deceased account owner did all of the signing previously and the funds were removed from the destination account. After verifying the second ower could write checks, it was discovered that the account was closed after the checks were written and the checks could not be cashed. Does a signed check carry any contractual implications, Is this considered a ''bounced check'' and if so, what are the options for recoverng the funds and possible penalities for these actions.


Asked on 5/14/04, 6:16 pm

1 Answer from Attorneys
John Sawyer Sawyer & Azarcon, P.C.

Re: Bounced Checks

I strongly suspect that there is more to this story than meets the eye. If the bank refuses to pay the balance to or as directed by the rightful owner then they are in breach of contract. For $300,000, you need to consult with a local attorney, ASAP, because you do not have the expertise to handle this matter on your own.

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Answered on 5/15/04, 7:51 am


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