Are there checks which cannot be converted into a third party check? I'm thinking of the proceeds check drawn from an investors money market mutual funds account held by an investment bank.
Untitled
Some checks carry legends that say they can only be cashed or deposited by the payee. They tend to be checks designed as part of credit card or home equity line marketing plans, in which the payee is encouraged to take an advance. Unless there is a legend on the front or, more often, in the endorsement area on the reverse of the check, the check should be negotiable to a third party other than a bank.
Outside the U.S. -- in the British Commonwealth and other areas of the British empire, checks that are crossed (two parallel diagonal lines on the face of the check, usually in top left, with or without "&Co." between them) are non-negotiable, and must be deposited to an account of the payee. Sometimes the words "not negotiable" appear as well. Because of the different definition of "not negotiable" in the U.S., crossed checks often cause confusion among U.S. bankers.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Some checks carry legends that say they can only be cashed or 