WAG 28-02-02: Reimbursement of a Check to a 2nd Endorser

A person, business, or financial institution that cashes a check made out to someone else is called a 2nd endorser. When a stop payment is placed on a check after the client signs Stop Payment and Recovery Agreement (Form 98), a 2nd endorser does not receive reimbursement for the check. In some cases, a 2nd endorser is eligible for reimbursement from the State if:

  • the client admits cashing the check; or
  • the Examiner determines that the endorsement signature is genuine; and
  • the 2nd endorser gives the check to Family Community Resource Center.

The LWU handles the reimbursement.