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Endorsements of a Joint Check to be Deposited
I wanted to joint accountdeposit an insurance check, which was an overpayment on an account. The check. was made out to both my husband and I. Our bank account is in both names as well. I endorsed the check: deposit only with the account number. The bank refused to deposit because it was not endorsed with signature from both of us. My husband is frequently out of town for work, and this has never been a problem before. Can they refuse to deposit without signature endorsement?
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 Yes. Your bank can require that you both endorse the check before it is deposited.
Although the law (section 4-205 of the Uniform Commercial Code) allows a bank to accept an unendorsed check for deposit, there are some checks that banks are particularly concerned about when it comes to getting customer endorsements. High on the list of those checks is any check issued by an insurance company.
That's because many insurance companies have requirements (sometimes printed on their checks, sometimes not) that payees on its checks actually endorse them before negotiation. That is their way of demonstrating that the payee was alive when the check was endorsed. If the insurance company in your case insisted on both endorsements, the check could be returned and charged back to your checking account, creating a frustrating mess for you and your bank.
Get your husband to endorse the check, and then endorse it personally yourself as you're about to hand it to the bank teller for deposit. Then, if you continue to have any questions about your bank's particular policies or procedures for handling jointly-payable checks (or any other of its policies), the best source for that information will be your bank's branch manager, but of course, if you have questions about banking in general, come back to us at www.BankingQuestions.com!
Published on BankingQuestions.com 8/30/06
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