Informalities or infirmities that make a negotiable instrument technically invalid. A small percentage of the checks and other items presented to a bank, especially through a clearinghouse, contain some formal irregularity. This necessitates their return to the presenting bank or firm for correction or reissue. Banks usually provide themselves with printed forms to be attached to such checks explaining the reason for their return.
The chief formal irregularities that require the return of checks are alteration, counter-signature missing, dated ahead, drawn against uncollected funds, duplicate paid, endorsement not exactly as drawn, endorsement illegible, endorsement incorrect, endorsement missing, filling (words and figures differ), guarantee of amount needed, guarantee of endorsement needed, insufficient funds, no account, no advice to pay, no instructions to pay, not due, not handled through exchange, original paid, past due, payment stopped, recalled, sent wrong, signature incorrect, signature missing, signature unknown, two signatures required, etc.
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