What is or is not the regulation, rule, or policy, for a "for deposit only" combination with a special endorsement not to a bank, e.g., Pay to John Smith for deposit only"?
The words "for deposit only" in an endorsement only affect you as the holder of the check if the endorsement is to a bank. In this case, because the designated transferee is not a bank, there is no restriction. The language is complex, but it's found in the Uniform Commercial Code, section 3-206.
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The words "for deposit only" in an endorsement only affect you as the holder of the check if the endorsement is to a bank. In this case, because the designated transferee is not a bank, there is no restriction. The language is complex, but it's found in the 