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Dealing with Government Checks

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Do state and federal government checks require an endorsement or can they be stamped "For deposit only"?

State regulations can vary. The federal rules are found in 31 CFR Part 240. An endorsement is required, but it can be supplied by the bank if it does so with the payee's authorization (which is assumed if the check is deposited to the payee's account).

As a practical matter, a missing endorsement would not create a problem unless the rightful owner of the check (the payee, presumably) contends that the check was negotiated without his/her authorization. If the payee's account is credited, that's a tough argument to make.

First published on 9/27/10

First published on 09/27/2010

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