I have a business account with a local bank, and I have customers that will write a check and leave the 'Pay to the order of' line blank. I use my business endorsement stamp and stamp the back of the check. The bank is telling me I need to either have the customer fill in this line or stamp/write my business name on the line or they won't accept the checks for deposit. Is this a law or policy?
It's a policy. It's legal to complete a text by inserting the payee name in such cases. It's also a smart step to take, since it can prevent a thief from inserting his or her name as payee and claiming that your business didn't have a right to endorse the check. Your bank is using its influence, because it can refuse to take a check for deposit, to encourage you to protect your business and the bank.
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It's a policy. It's legal to complete a text by inserting the 