Policy 2703: Reissuance of Forged Checks

Subject Area: Miscellaneous
Responsible Office: Financial Services
Sponsor: Associate Vice President for Finance
Originally Issued: March 1997
Revised: March 1999, February 2010, March 2013, May 2021
Refer Questions To: Maru Mendoza, 773-702-3690

Purpose: To provide replacement checks to University payees whose original checks have been forged, lost, misplaced or destroyed.

Policy

1. University payees are responsible for reporting missing checks to Financial Services (Accounts Payable).
2. Financial Services (Accounts Payable) is responsible for investigating a report of a missing check to determine if the checks have been forged or have not been otherwise presented for payment.
3. For lost, misplaced or destroyed checks that are less than one year old, Financial Services (Accounts Payable) is responsible for placing a stop payment on the check and will initiate a reissuance based upon request from the University department that initiated the original payment.
4. For lost, misplaced or destroyed checks that are greater than one year old, these checks are considered unclaimed property. In such instances, the payee is responsible for providing a completed and signed Affidavit and application for a Replacement Check form to Financial Services (Accounting). Financial Services (Accounting) is responsible for check reissuance upon receipt of the completed affidavit or other appropriate documentation demonstrating payment is still owed. Forms are available on the Financial Services website.
5. For forged checks, the payee is responsible for providing a signed and notarized Affidavit of Unauthorized Endorsement or Altered Item and a Statement of Fact to Financial Services (Treasury). The affidavit is provided upon request from Financial Services (Treasury).
6. Financial Services (Treasury) is responsible for filing loss reimbursement claims with the University’s banking institutions.
7. Ordinarily for forged checks, payees will be reimbursed after the University is reimbursed by its banking institutions. However, payees who are University students or employees may obtain a replacement check before the University is reimbursed if the forgery of the original check causes them undue financial hardship. A replacement check will be issued after:
   1. They have provided a notarized Affidavit of Unauthorized Endorsement or Altered Item and a Statement of Fact form;
   2. They have formally contacted Financial Services (Accounts Payable/Payroll) with delivery instructions for the replacement check; and
   3. Financial Services (Treasury) has filed a loss reimbursement claim with its bank.
8. In the event that the University reissued a check prior to reimbursement from the banking institution and subsequently the banking institution refuses to honor the University’s loss reimbursement claim, the University will seek reimbursement from the student or employee.
9. Payees who are commercial vendors of the University are not eligible to receive replacement checks before the bank compensates the University for a forgery loss.
10. Under no circumstance will the replacement of a forged check constitute assumption by the University of any liability for the forgery.