Judge Monaco and the Fantastic Floating Allonges: Cashing Someone Else’s Check
Posted on July 5, 2011 by Neil Garfield
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Judge Monaco and the Fantastic Floating Allonges
by Mike Wasylik – http://floridaforeclosurefraud.com/
Some foreclosure plaintiffs are trying to cash someone else’s checks.
Some foreclosure plaintiffs are trying to cash checks that don’t belong to them, and forging evidence along the way to help them do it. And here’s the sneaky trick they use to get it done.
Some foreclosure plaintiffs are trying to cash someone else’s checks.
Some foreclosure plaintiffs are trying to cash checks that don’t belong to them, and forging evidence along the way to help them do it. And here’s the sneaky trick they use to get it done.
Without it, the banking industry couldn’t exist: the Uniform Commercial Code, the law that tells banks how to handle checks and who gets to cash them. Before you cash your next check, take a look at the front. That part that says “Pay to the order of:” is pretty clear—it means that person, hopefully you, has the right to get money in exchange for that check. But that’s not the only important part.
Flip it over and write your name.
Somewhere on that check, usually the back, you signed that check, too. Maybe you just put your name, maybe you wrote “For deposit only.” Maybe you wrote “Pay to the order of…” and someone else’s name. All those markings are known as “indorsements” (sometimes spelled “endorsements”) and they instruct the person you give that check to, what they need to do with it. Just a signature? They can give you cash. Deposit only? Cash into your bank account. Pay to the order of someone else? Only that person now has the right to cash it.
Somewhere on that check, usually the back, you signed that check, too. Maybe you just put your name, maybe you wrote “For deposit only.” Maybe you wrote “Pay to the order of…” and someone else’s name. All those markings are known as “indorsements” (sometimes spelled “endorsements”) and they instruct the person you give that check to, what they need to do with it. Just a signature? They can give you cash. Deposit only? Cash into your bank account. Pay to the order of someone else? Only that person now has the right to cash it.
But the check doesn’t stop there. Unless you’ve presented that check to the bank it was drawn on—where the original maker of the check has an account—the bank or person you present it to has to then cash it themselves. Your indorsement to them, or if to no one, “in blank,” allows them to go ahead and present it to the next bank up the line. But they have to indorse it, too. Eventually the check makes its way back to the bank on which its drawn, gets paid off and canceled. And if the check runs out of room for the indorsements necessary to get there, you can attach a separate piece of paper to provide room for more. This additional paper is called an “allonge,” and it’s the way a lot of foreclosure plaintiffs are trying to cash checks made out to someone else.
Your home loan is the biggest check you’ve ever written.
Most people don’t realize, when they borrow money for a home, that they’re writing the biggest check they might ever see in their lives. Because the promissory note that gives the terms of the loan is just like a check—it’s a promise, signed by you, to pay a specific named party a specific amount of money. And unless there’s an indorsement on the note that says otherwise, only the bank named in the note can demand payment.
Most people don’t realize, when they borrow money for a home, that they’re writing the biggest check they might ever see in their lives. Because the promissory note that gives the terms of the loan is just like a check—it’s a promise, signed by you, to pay a specific named party a specific amount of money. And unless there’s an indorsement on the note that says otherwise, only the bank named in the note can demand payment.
A recent case out of Collier County, Florida, along with another case I witnessed just a month later, shows that these huge checks borrowers wrote on their home loans are getting cashed illegally by many banks. In the Faulk case, reported by Professor Adam Levitin, and by Yves Smith, the mysterious “fourth page” of the note, containing the indorsement, hadn’t been filed with the court, but instead has floating around separate from the note and in possession of plaintiff’s counsel. And this apparently was just fine with Collier County Judge Monaco, who signed off on an order essentially approving that state of affairs..
Judge Monaco and the Fantastic Floating Allonges by Mike Wasylik – http://floridaforeclosurefraud.com/ Some foreclosure plaintiffs are trying to cash someone else’s checks. Some foreclosure plaintiffs are trying to cash checks that don’t belong to them, and forging evidence along the way to help them do it. And here’s the sneaky trick they use to get it done. Without it, the banking industry couldn’t exist: the Uniform Commercial Code, the law that tells banks how to handle checks and who gets to cash them. Before you cash your next check, take a look at the front. That part that says “Pay to the order of:” is pretty clear—it means that person, hopefully you, has the right to get money in exchange for that check. But that’s not the only important part. Flip it over and write your name. Somewhere on that check, usually the back, you signed that check, too. Maybe you just put your name, maybe you wrote “For deposit only.” Maybe you wrote “Pay to the order of…” and someone else’s name. All those markings are known as “indorsements” (sometimes spelled “endorsements”) and they instruct the person you give that check to, what they need to do with it. Just a signature? They can give you cash. Deposit only? Cash into your bank account. Pay to the order of someone else? Only that person now has the right to cash it. But the check doesn’t stop there. Unless you’ve presented that check to the bank it was drawn on—where the original maker of the check has an account—the bank or person you present it to has to then cash it themselves. Your indorsement to them, or if to no one, “in blank,” allows them to go ahead and present it to the next bank up the line. But they have to indorse it, too. Eventually the check makes its way back to the bank on which its drawn, gets paid off and canceled. And if the check runs out of room for the indorsements necessary to get there, you can attach a separate piece of paper to provide room for more. This additional paper is called an “allonge,” and it’s the way a lot of foreclosure plaintiffs are trying to cash checks made out to someone else. Your home loan is the biggest check you’ve ever written. Most people don’t realize, when they borrow money for a home, that they’re writing the biggest check they might ever see in their lives. Because the promissory note that gives the terms of the loan is just like a check—it’s a promise, signed by you, to pay a specific named party a specific amount of money. And unless there’s an indorsement on the note that says otherwise, only the bank named in the note can demand payment. A recent case out of Collier County, Florida, along with another case I witnessed just a month later, shows that these huge checks borrowers wrote on their home loans are getting cashed illegally by many banks. In the Faulk case, reported by Professor Adam Levitin, and by Yves Smith, the mysterious “fourth page” of the note, containing the indorsement, hadn’t been filed with the court, but instead has floating around separate from the note and in possession of plaintiff’s counsel. And this apparently was just fine with Collier County Judge Monaco, who signed off on an order essentially approving that state of affairs.. Full story at http://floridaforeclosurefraud.com/
ocean11@the-beach.net
Ann
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Keep up the good work.