Wednesday, November 3, 2010
For Deposit Only Indorsement
In class, we attempted to distinguish the decision in Schulingkamp (p. 574) with the statement in the text: "For Deposit Only makes the instrument a bearer instrument for any bank". We know a check with the restrictive endorsement of "For Deposit Only Acct. No 12345" can be only be deposited in the Payee's bank and in account No. 12345. A check with the restrictive endorsement of "For Deposit Only" can only be deposited in any bank where the Payee has an account. Do you agree? This analysis appears to be consistent with the Schulingkamp case and the text. Comments welcome!
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Why does the rule not read something like this:
ReplyDelete"A check with the restrictive endorsement of 'For Deposit Only' can only be deposited in any bank where the Payee has an account(their account) with No. 12345".