Endorsement: Payable to Bank

Posted By: complyguy

Endorsement: Payable to Bank - 04/02/03 04:15 PM

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?
Posted By: Jill

Re: Endorsement: Payable to Bank - 04/02/03 04:45 PM

This might help. Link
Posted By: Don_Narup

Re: Endorsement: Payable to Bank - 04/02/03 09:13 PM

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.