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Two Signatures Required?
Answers by Dana Turner, Barbara Hurst and Sam Ott, BOL Gurus

QUESTION: When a check is payable to two parties without "and" or "or" written on it, do I need one signature or two?

ANSWER by Dana Turner
BIO AND CONTACT INFO
This could be yet another in a good crook's bags of tricks. The answer depends upon the type of check (U.S. Treasury vs. personal) and what the presenter intends to do with the funds (get cash or deposit into an account).

To be safe, require that both signatures must be signed in an employee's presence whenever your suspicions are aroused. It would also be helpful to your staff if you made this requirement a written policy.

ANSWER by Barbara Hurst
BIO AND CONTACT INFO
I'll add to Dana's response - and as usual I'll disagree with part of it! The new UCC says that in order for a check to require two endorsements (please stay on track - "signatures" appear on the front of a check... "endorsements" appear on the back) the check must say "and". If the word "and" does not specifically appear, the Uniform Commercial Code says the intent is "or". So the only time you need two endorsements is if the word "and" is in the payee portion of the check. Having so said - there are insurance checks that require all endorsements - and will print that requirement right on the back of the check. So will medical claim checks. In those cases, AND ON ALL JOINTLY PAYABLE INTERNAL REVENUE CHECKS, (please note the emphasis!!!) you will want to require more than one endorsement. Keep in mind that one endorsement deposited into a jointly named account that only requires one signature to withdraw is NOT two endorsements.

ANSWER by Sam Ott
BIO AND CONTACT INFO
I believe the section of the UCC that Barbara is refering to is 3-3-110(d). An easy way to find a specific UCC section is from the Uniform Commercial Code links on the BOL Launch Pad.

First published on BankersOnline.com 1/7/02





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