We have a very good client (A) that has a deal that involves another company (B) and this is a very well known company. I guess through their deal the checks have to be made payable to A/B. So the checks are coming exactly like that - Pay to the order of A/B, but only using the first word of the company's name for A and the whole company name for B. My boss is saying it is ok to accept these checks.

My question is what does the "/" really mean? Does it mean it is payable to both or does AND have to be in there. There is no endorsement for B.

Do you think we should ask for the agreement that they have? I just want to know the risk involved with only having org docs for A and the name on the account is A. One last thing to mention is in the titling below the account name, we have A/B in paranthesis. Thanks!!

Without getting into the last half of your post, a check that is payable to A/B is treated in most states as an item that fits this definitional sentence in Section 3-110 of the UCC: "If an instrument payable to two or more persons is ambiguous as to whether it is payable to the persons alternatively, the instrument is payable to the persons alternatively."

The virgule (slash) is ambiguous. It means neither "and" nor "or." So it should, in most statements, be treated as if "or" appears.

Bank counsel should be able to determine what the case law in your state has decided.