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Endorsement Of Checks Payable To Joint Tenants
by John Burnett, BOL Guru
BIO AND CONTACT INFO
Question: Can a check payable to John Doe and Jane Doe be deposited (without endorsement) to a joint account of John Doe OR Jane Doe? Also, what endorsements are needed to a check payable to John Doe, Jane Doe, Jt Tenants and a check to John Doe, Jane Doe JT ROS?
Answer: A check payable to "John Doe and Jane Doe" that is not endorsed can be accepted for deposit to a joint account of "John Doe or Jane Doe." The bank is presumed to supply the endorsement of both parties. Caveat: Because it SHOULD work this way does not always make it so. We have heard of lawsuits over such situations when one or the other of the payees places the check on deposit in a joint account, then draws the funds out. Other joint owner of check and account sues, claiming no consideration. Courts have unfortunately found for the plaintiff in some such cases.
Endorsement needed for a check payable to "John Doe, Jane Doe, JT" or to "John Doe, Jane Doe, JTROS" is, in my opinion, that of either payee. Absent the conjunctive "and," a check is presumed payable to either. [Ref. UCC §3-110(d)]
First published on BankersOnline.com 08/11/03
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