My company receives joint issued checks from a lender that are made out to the borrower (an individual) and my company (a corporation). How can we deposit these checks into our business account?
Joint payees are often seen on insurance checks for automobile collision claims. The checks may be jointly payable to the insured and a lien-holder, or to the insured and an auto body shop. In either case, the endorsement of both payees is required.
If your business routinely receives jointly-payable checks, your bank should be willing to accept those checks for deposit to your account, provided the other payee has endorsed the checks first. Because banks have added risk in accepting such checks for deposit (the other payee's endorsement could be a problem for up to three years), it would not be unusual for it to require some form of protection from loss on this sort of check. That could be in the form a separate deposit account that would stand as security against any litigation on forged endorsements.
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