Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BETHALTO, Ill.-CUNA, in conjunction with the Illinois and Wisconsin Credit Union Leagues, filed a joint amicus brief a little over a year ago arguing a lesser liability for Olin Employees Credit Union (now Olin Community Credit Union) for accepting fraudulent checks. A member of the credit union had stolen checks from her employer and forged the checks before depositing them into her account at the credit union. The employer subsequently sued the Olin Employees CU for wrongful conversion of negotiable instruments, according to CUNA Assistant General Counsel and Senior Compliance Counsel Mike McLain. A lower court ignored the Uniform Commercial Code three-year statute of limitations, saying that the 269 checks-deposited over a seven-year period-constituted one transaction totaling $335,000. Following CUNA and the leagues’ March 5, 2004 amicus, the U.S. 7th Circuit Court of Appeals vacated the lower court decision, agreeing that the checks negotiated more than three years prior to the suit being filed were beyond the statute of limitations, bringing Olin Employees CU’s liability down to around $100,000.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.