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#27006 - 08/06/02 08:53 PM Checks Payable to Bank
Marathon Junkie Offline
Member
Joined: Mar 2001
Posts: 50
I need some help finding an article or some information which states that checks made payable to "Bank" can only be used for services, fees or loans. Further, checks made payable to "Bank" cannot be used for the customer to withdraw cash from his or her account. Those checks need to be made payable to "cash." Could anyone point me in the right direction? Any help would be greatly appreciated.
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#27007 - 08/06/02 10:04 PM Re: Checks Payable to Bank
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
If you have access to a copy, take a look at Brady on Bank Checks, ¶¶ 13.01 - 13.07. You'll find a long list of reasons a bank must be careful when handling checks payable to itself (along with some cases in which failure to do so came back to bite the bank in the assets).

Incidentally, one other situation where a check payable to the bank would be appropriate -- deposit of federal tax payments with IRS-supplied coupons. Many businesses now use electronics and ACH to make these deposits, but a lot more still use the old coupon method.
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BankersOnline.com
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#27008 - 04/02/03 09:37 PM Re: Checks Payable to Bank
complyguy Offline
Gold Star
complyguy
Joined: May 2001
Posts: 494
PA
Quote:

If you have access to a copy, take a look at Brady on Bank Checks, ¶¶ 13.01 - 13.07. You'll find a long list of reasons a bank must be careful when handling checks payable to itself (along with some cases in which failure to do so came back to bite the bank in the assets).

I checked our Brady - unfortunately, it is dated 1977, and the index doesn't even match the topic we're discussing here. I put in a request for a new edition - at $355, it comes out to only $13.65/year for another 26 years.

Incidentally, one other situation where a check payable to the bank would be appropriate -- deposit of federal tax payments with IRS-supplied coupons. Many businesses now use electronics and ACH to make these deposits, but a lot more still use the old coupon method.



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#27009 - 04/02/03 10:11 PM Re: Checks Payable to Bank
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
The Dalton case, found in BOL CourtWatch,
http://www.osca.state.mo.us/courts/pubopinions.nsf/ccd96539c3fb13ce8625661f004bc7da/ff8f56fe928e523b862566b0006704f5?OpenDocument
provides an excellent explanation of the risks involved.
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