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#71359 - 04/02/03 04:15 PM Endorsement: Payable to Bank
complyguy Offline
Gold Star
complyguy
Joined: May 2001
Posts: 494
PA
I feel stupid asking this question, but my searches through BOL and textbooks haven't yielded a clear answer.

I worked a relief shift at the drive-through a few days ago, and I noticed that three business deposits had the checks endorsed "Pay to the order of XYZ Bank, for deposit to account of Acme Widget Company, account #123456789".

I seem to recall a discussion about the dangers of accepting a check payable to the bank when the bank is not the party benefitting from the funds, but I can't find it.
I think it was about consequences of the bank becoming a holder in due course.

Could someone conversant in UCC steer me in the right direction or just tell me outright whether or not there's a problem?

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Operations Compliance
#71360 - 04/02/03 04:45 PM Re: Endorsement: Payable to Bank
Jill Offline
Member
Jill
Joined: Dec 2002
Posts: 60
Mississippi
This might help. Link

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#71361 - 04/02/03 09:13 PM Re: Endorsement: Payable to Bank
Don_Narup Offline

Power Poster
Joined: Jul 2001
Posts: 3,708
Las Vegas Nevada
This endorsement in no way is a problem and IS NO DANGER TO THE BANK. In fact this is a standard endorsement that has been around for many many years and endorses the check for deposit only to a business account at your bank.

Take a look at the endorsement stamps put out by your new accounts dept. Your bank provides this endorsement when a customer orders an endorsement stamps.
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