If I make a notation on the memo line of my check and the payee marks through that notation, has the payee defaced my check? What can result from this?
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First, the check is still payable. The memo line has little affect on the check being cashed. Where this can come into play is what the memo line said. It also depends on your state laws. In some cases, writing "Payment in full" in the memo line is binding when a debt is paid. If the person cashing that check allows it to go through, but later claims that was only part of the amount owed, they may or may not have a claim. In some states it clouds the issue and in others it may have no impact whatsoever. Your attorney, familiar with your state laws, those of the state where the recipient is, and the Uniform Commercial Code for these states can answer your question more specifically.
Published on BankingQuestions.com 3/13/08
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First, the check is still payable. The memo line has little affect on the check being cashed. Where this can come into play is what the memo line said. It also depends on your state laws. In some cases, writing "Payment in full" in the memo line is binding when a debt is paid. If the person cashing that check allows it to go through, but later claims that was only part of the amount owed, they may or may not have a claim. In some states it clouds the issue and in others it may have no impact whatsoever. Your attorney, familiar with your state laws, those of the state where the recipient is, and the 