Deposits On Behalf Of The Customer & "Less Cash"
by Mary Beth Guard, BOL Guru
Question: If someone comes in to make a deposit on behalf of a customer and the deposit has "less cash" would it be better for us to get the person whom we give the cash to sign the cash out ticket or check itself? Some have suggested they sign the back of the check under the customer's signature. We do that when the entire check is being cashed, but not for a partial deposit. There has never been a policy addressing this issue before and we wanted to see what would best CYA in this case.
Answer: That's a good question. My feeling is that it would be better to have the person who is taking the cash out sign the cash out ticket. My reason for this is because signing the back of the check makes the person liable as an accommodation signer, and that doesn't seem quite appropriate. Plus, if the person taking the cash doesn't have an account at your bank, there's no easy way to take advantage of the accommodation endorsement anyway.
Seems to me that the objective is to document who got the cash and having the individual sign the cash out ticket accomplishes this.
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