Chapter 27

Hey all,

My mom works at a bank so Professor Custin asked me to ask her a couple questions to help clarify our class discussion last week. Here are the main points:

1) If somebody writes me a check, and I endorse the back of the check but I do not write "for deposit only," then I lose the check before I bring it to the bank, the check turns into a bearer instrument and whoever finds it can cash the check.

2) However, if I write "for deposit only" on the back of the check and I endorse the check, then it doesn't matter if I lose the check because it can only be deposited into an account with my name on it.

3) It doesn't matter what you write on the back of the check first (for deposit only and then your signature or the other way around). All that matters is that both components are there.

4) Also, if you bring a check to the bank that is not endorsed on the back, most tellers will make you sign it before you give it to them.

5) Lastly, banks used to require that you write your account number on the check, but now it is not required for security reasons.

Hope that helps!