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#2139372 - 07/25/17 01:39 PM Purchase of Monetary Instrument Question
Wildcat Rampage Offline
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Joined: Aug 2016
Posts: 91
Kentucky - Home of the 8 time ...
While I don't think it's optimal, I've found that on occasion we will allow customers to purchase monetary instruments with third party checks. I've only seen it with transit checks, but have no doubt we'd allow it with an on-us check. The customer for whom this has been allowed, has a sufficient account balance to cover any item being presented, so risk is moot.

This would seem to me to be the equivalent of a cash purchase of a monetary instrument and when it aggregates to $3,000 or more I feel as if I should track it. Am I correct or am I simply creating more work for myself?
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#2139375 - 07/25/17 01:47 PM Re: Purchase of Monetary Instrument Question Wildcat Rampage
Daisy Doodle Offline
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Joined: Feb 2014
Posts: 1,030
Southern U.S.
Our MIL records all purchases of monetary instruments, whether purchased with cash or not, however, only cash purchases are required to be tracked. I would not consider this a cash purchase anyway, because there's no cash.

Third party checks present other concerns besides risk of loss though. If your customer check cashing, for example? Is he allowing a non-customer to use his bank account?

If you have done all your due diligence on the situation, I would require the third party check to be deposited to his account and the MI be purchased out of his account.

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#2139376 - 07/25/17 01:48 PM Re: Purchase of Monetary Instrument Question Wildcat Rampage
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
I am simply creating more work for myself - is the answer
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#2139380 - 07/25/17 01:54 PM Re: Purchase of Monetary Instrument Question Wildcat Rampage
Wildcat Rampage Offline
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Joined: Aug 2016
Posts: 91
Kentucky - Home of the 8 time ...
Thank you both.
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