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Question & Answer
Question: Can a check payable to a corporation be split?
Answer: A check payable to a corporation should only be split to accounts in the name of the corporation-for instance the "ABC Corporate Working Account" and the "ABC Corporate Accounts Payable" account. If you split the check with part of it going into the corporate account and part as cash over the window, or to an unaffiliated account, there is no way you can guarantee the endorsement as the check is drawn. It is not good policy or procedure to split checks payable to a corporation, but rather deposit them in full. If they want to move funds into other accounts, it's better banking procedure to let them do so by writing a check to transfer the funds, or doing so at the ATM.
Copyright © 1994 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 4, No. 9, 3/94
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