ABC Security Company has a checking account under “ABC Security Co.” They have bought out another security company (XYZ Security) and in the contract that they provided to us, XYZ Security’s name will remain the same and people will still being writing checks payable to “XYZ Security”. ABC Security wants to deposit XYZ Security’s checks into ABC Security Company’s existing checking account and not have to revise the name on the account or open a new account just for XYZ Security. Our legal counsel said this was ok. The issue now is what is acceptable for them when they deposit these checks? Can they continue to keep the same endorsement they are using now which is “For Deposit Only-ABC Security Company” or will they have to endorse it differently?

The ideal indorsement would be "ABC Security Company, DBA XYZ Security." It's one thing for you, the bank, to know the history and allow ABC to put XYZ checks into the ABC account, but check issuers might not like seeing the ABC indorsement (by itself) on checks payable to XYZ.

Thanks!