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Home >> Checks/Money Orders >> Checks You Received
Trouble Obtaining a Cashier's Check
Can a federally chartered bank refuse to exchange a check drawn on them by one of its customers and made payable to a business for a cashier's check when the check is presented to the bank by an authorized agent of the payee? I was refused this service last week and my bank said that it was because my company had an account at a different bank.
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 In a word, yes. A bank is under no obligation to exchange or cash a check payable to a business, even if the business has its deposit accounts with the same bank.
Businesses (other than sole proprietorships) do, as you've suggested, act through agents. Agents are normally appointed by a governing body of the business (a board of directors for a corporation, for example), and have specifically-enumerated actions they can take. Most businesses don't appoint check-negotiation agents.
Even if a business were to appoint an agent with authorization to negotiate checks payable to the business, a bank with which the business does not do business would not know of or be able to verify the authorization. Many banks now suggest that businesses deposit checks or, for larger checks, have their own banks handle them for collection, if necessary. They have the legal right to do so.
Published on BankingQuestions.com 8/28/07
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