State of Qatar v. First American Bank
United States District Court for the Eastern District of Virginia
885 F. Supp. 849 (1995)
Relevant factsFree
An employee defrauded the State of Qatar (plaintiff) by generating checks for false or duplicate invoices, forging indorsements, stamping the checks 'for deposit only,' and depositing them into his own personal accounts at First American Bank and Central Fidelity Banks (defendants) over a six-year scheme; when Qatar discovered the fraud, it sued the banks for conversion, arguing they failed to honor the restrictive indorsement's requirements.
IssueFree
Whether, under the Uniform Commercial Code, a restrictive indorsement of 'for deposit only' on a check requires the depositary bank to deposit the funds only into the account of the last indorser of the check.