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#467467 - 12/08/05 02:59 PM Payable to Cash
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
Cheeseland
I'm obviously having a "duh" moment, but why can't a Cashier's Check be payable to cash (we have the remitter's name) if it is to be considered as good as cash and a stop payment cannot be made unless the item is lost, stolen or mutilated?

I know I should know this....

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#467468 - 12/08/05 03:21 PM Re: Payable to Cash
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,627
Cape Cod
There is no reason you'll find in the UCC. But if the issuing financial institution specifies it won't issue a cashier's check to "Cash," that is enough for me. If the institution is signing the check, it gets to decide the rules.
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#467469 - 12/08/05 04:40 PM Re: Payable to Cash
Midwest Banker Offline
Gold Star
Joined: Nov 2004
Posts: 349
Cheeseland
Thanks John. I've never worked for an institution who would allow a check payable to cash and someone asked me the other day and I couldn't provide them with what I felt was a strong answer

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#467470 - 12/08/05 05:08 PM Re: Payable to Cash
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,627
Cape Cod
It's about as strong as "Because I said so!" But I knew that was the final word when Mom or Dad used it when I was a kid.

They made the rules.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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#467471 - 12/10/05 12:29 AM Re: Payable to Cash
rainman Offline
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rainman
Joined: Nov 2004
Posts: 3,074
I think it's because a check made payable to cash is payable to "bearer" (i.e., as you said, it's cash) and most banks don't want to deal with the inevitable complaints that will come up when it's lost or stolen or whatever else and the bank won't issue a replacement check.
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