Answer:
Let's assume that the check is not drawn on your bank. It's payable to Adam Andrews, who is not your customer, and he's endorsed it over to your customer, Abigail Benjamin. You've decided to cash the check for Abigail, and the cash paid to her is $12,500.
Under normal circumstances, your teller is very unlikely to ask Abigail whether she's cashing the check for herself or on behalf of Adam Andrews, and you'd have to assume she's doing it for herself. Complete section A with information on Abigail and check "on own behalf" in Section B. In Part II indicate a negotiable instrument was cashed and record the cash out amount.
Suppose, however, that Abigail and Adam come in together, and Abigail tells your teller that she's endorsed the check as an accommodation to Adam, so that he can get the cash. In that case, Adam's info goes in Section A, Abigail's in Section B.
First published on BankersOnline.com 7/19/10
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