Should a check with two payees with "and" separating them be deposited into a joint account?

The ideal would be to deposit the check into a joint account. At least then, if one of the endorsements was forged, you'd be able to demonstrate that both parties received value.

From a practical perspective, we all see this sort of thing. If you know your customer and you're comfortable that both endorsements are genuine, you'll probably accept the check for deposit to an individual account. Just understand there is a risk (which is mitigated by your customer knowledge) that one of the endorsements is forged and you'll end up in the middle of a nasty mess.

Also from a practical viewpoint, I'd get more careful about who gets the proceeds as the dollar amount gets larger. Consider calling the payee who's not receiving the money, and asking if his/her endorsement is genuine.

First published on BankersOnline.com 9/2/02