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Printable Guidelines for Cashing Business Checks

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Question: 
I have a customer who is the sole member of a corporation. He has been told by his attorney and accountant that he can cash a check made payable to the corporation. This is not our bank's practice. Can you direct me to something printable to give to my customer stating guidelines for cashing business checks?
Answer: 

The attorney is correct in that the checks can be cashed by him by anyone that cares to accept them. That, however, does not mean the bank has to play that game. The attorney could also have told your customer that the corporation's board of directors would have to adopt a resolution allowing him to endorse and cash the checks, and that creditors of the corporation m(including the IRS) might have reason to challenge the transactions in court if the corporation ever gets into financial difficulty.

At the end of the day, it's a policy decision of your bank, regardless of what your customer's attorney may have told him.

First published on BankersOnline.com 8/15/11

First published on 08/15/2011

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