California Business Practice- April 2014

Monday, October 25, 2010

Teller or Teller's Checks UCC 3-104(h)

As suggested by a student (who was absolutely correct)- Teller's Checks are most often issued by credit unions. These checks are signed by a teller at the first or issuing institution. (see UCC 3-104) I confirmed this statement after class. By definition, Teller's checks are checks written by a financial institution on the funds from an account at another financial institution.

Under UCC 3-104(h) a Teller's check" means a draft drawn by a bank (i) on another bank, or (ii) payable at or through a bank. Teller's Checks generally are sold by banks to substitute the bank's credit for the customer's credit and thereby enhance the collectibility of the checks.
(http://www.fdic.gov/regulations/laws/rules/6500-3222.html)

Good job! Good Class!




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