|
 |
Home >> Checks/Money Orders
Cashier's Check Endorsed to Third Party
Can a cashier's check be endorsed by the payee and then transferred to another person?
|
Untitled
|
 Certainly. In the U.S., a check payee can transfer his/her interest in most checks by endorsing the check and delivering it to the intended transferee. It's usually wise to name the transferee in a special endorsement: "Pay to [name of transferee], [Signature of payee]."
Some checks have restrictions printed on them indicating that they may only be deposited by the payee. In such cases, a transfer other than to a depository institution would probably not be acceptable to the issuer of the check, and the check could legally be dishonored. In many countries, particularly those following British banking laws and customs, a check can be "crossed" with two diagonal lines, often in the upper left corner, to indicate that it can only be deposited. Although cashier's checks are almost never restricted in such a way, many financial institutions no longer accept checks that have already been transferred by endorsement to a third party, so unless the third party is a business that routinely deposits third party checks, it's a good idea for the intended transferee to find out how its bank feels about accepting such a check for deposit.
Published on BankingQuestions.com 10/09/08
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
