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Requirements for Endorsements

A large check is made payable to Corporation ABC. Can an individual just write "Corporation ABC" as an endorsement with no additional signature, and then deposit that check into a separate corporation's account? Isn't a person's endorsement required? Are there laws about banks' requirements for endorsements?


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A signature is what your customer says it is, and it need not include an individual's manual signature. However, endorsements that are simply the name of a business are usually only seen when checks are being deposited in an account of that business.

It is irregular at best for checks payable to one corporation to be deposited to an account of another corporation, with or without endorsements. The norm would be for the check to be deposited to the account of the payee corporation, and that corporation would issue its own check to the second business, instead.

Published on BankingQuestions.com 5/05/10