Claims Example

Foreign Check Rider

A customer deposits a Canadian check of $65,000 into her savings account, which she has had at her (U.S.) community bank for 6 months. After the Canadian institution pays the check and her bank receives the funds, the customer withdraws the funds out of her account. Subsequently, the Canadian institution discovers that the check is counterfeit and returns it. Because the customer does not have sufficient deposited funds to offset the amount the bank is required to return, the bank suffers the consequential financial loss.