What's the point of endorsing a check?

[yhelothar]

Just wondering. I never had a check rejected from not signing the back.
It's not like someone could hijack your check anyways if the pay to the order of is made out to you.
And there's always a documented scan of the check when you deposit it anyways.

I'm guessing it's much like signing the receipt when you pay with card - no one cares?

 

[sjwaste]

You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

 

[Soundmanred]

Originally posted by: sjwaste
You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

 

[sjwaste]

Originally posted by: Soundmanred

Originally posted by: sjwaste
You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

Here's a link to UCC Article 4. It's a legal term of art. Take your bullshit elsewhere.

EDIT: Bonus. Article 3.

 

[gorcorps]

Originally posted by: sjwaste

Originally posted by: Soundmanred

Originally posted by: sjwaste
You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

Here's a link to UCC Article 4. It's a legal term of art. Take your bullshit elsewhere.

EDIT: Bonus. Article 3.

You dumbass... he's saying you spell like a dipshitter. ENDORSE not INDORSE

can't believe you quoted a bunch of BS when he was just correcting your spelling

 

[sjwaste]

Originally posted by: gorcorps

Originally posted by: sjwaste

Originally posted by: Soundmanred

Originally posted by: sjwaste
You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

Here's a link to UCC Article 4. It's a legal term of art. Take your bullshit elsewhere.

EDIT: Bonus. Article 3.

You dumbass... he's saying you spell like a dipshitter. ENDORSE not INDORSE

can't believe you quoted a bunch of BS when he was just correcting your spelling

My spelling was not incorrect. Please see the referenced Uniform Commercial Code.

 

[sjwaste]

By the way, UCC 4-205, as adopted by your particular state, forms the basis for the bank to accept a check that you havent indor.. err, signed the back of.

 

[Juked07]

Originally posted by: gorcorps

Originally posted by: sjwaste

Originally posted by: Soundmanred

Originally posted by: sjwaste
You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

Here's a link to UCC Article 4. It's a legal term of art. Take your bullshit elsewhere.

EDIT: Bonus. Article 3.

You dumbass... he's saying you spell like a dipshitter. ENDORSE not INDORSE

can't believe you quoted a bunch of BS when he was just correcting your spelling

If you click the links you'll see that "indorse" is in fact correct. It's a variant that's less common colloquially but apparently is used in official settings. You look a little silly now, btw.

 

[sjwaste]

Originally posted by: Juked07

If you click the links you'll see that "indorse" is in fact correct. It's a variant that's less common colloquially but apparently is used in official settings. You look a little silly now, btw.

Only on ATOT could such a simple question, with the answer in the first response, go off on such a tangent. I'm happy to have contributed to it

 

[yhelothar]

Originally posted by: sjwaste
You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

So let me get this straight... if I indorse a cheque, it allows for anyone to deposit it?

 

[sjwaste]

Originally posted by: astroidea

So let me get this straight... if I indorse a cheque, it allows for anyone to deposit it?

In theory, yes. If you sign the back without any limitation, it becomes a bearer instrument. Whoever is holding it can demand payment. You can put limiting language on it, though.

I always sign the back of my checks and put "For deposit <my acct #> only". Well, not always. I often don't even sign them, or just sign them when I get to the bank and realize that I haven't done that yet.

There are limitations to all of this, defenses and such. Also, there are rules for when the bank can dishonor (not pay) on the instrument in UCC 4.

But yeah, if someone's willing to accept it, you can negotiate a check to them and they can cash/deposit it.

 

[DayLaPaul]

You do know that you can also double endorse a check, right? So even though the check is made out to you, you could endorse it over to me by writing "Pay to the order of DayLaPaul" then signing underneath it. Some banks won't cash a check that's been double endorsed, but I was recently able to cash my friend's paycheck by having him endorse it over to me in the presence of my bank teller.

Also, I've noticed that even with banks with a policy to not accept double endorsed checks, I've had success slipping one through the system by depositing through the ATM (disclaimer: I am in no way trying to promote check fraud).

 

[guyver01]

Originally posted by: DayLaPaul
I've had success slipping one through the system by depositing through the ATM (disclaimer: I am in no way trying to promote check fraud).

ive done that too..

was about 2 years ago, my ex & i were in the middle of a divorce...

no way was she gonna sign a refund check over to me...

so i signed my name... left her name off

put it thru the ATM.. and 2 days later, it cleared into my checking acct.

 

[axelfox]

Negotiable Instruments all over again

*head explodes*

Holder in due course? *BOOM*

 

[allisolm]

Originally posted by: Juked07

Originally posted by: gorcorps

Originally posted by: sjwaste

Originally posted by: Soundmanred

Originally posted by: sjwaste
You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

Here's a link to UCC Article 4. It's a legal term of art. Take your bullshit elsewhere.

EDIT: Bonus. Article 3.

You dumbass... he's saying you spell like a dipshitter. ENDORSE not INDORSE

can't believe you quoted a bunch of BS when he was just correcting your spelling

If you click the links you'll see that "indorse" is in fact correct. It's a variant that's less common colloquially but apparently is used in official settings. You look a little silly now, btw.

If only ATOT was an official setting.

 

[Juked07]

Originally posted by: allisolm

Originally posted by: Juked07

Originally posted by: gorcorps

Originally posted by: sjwaste

Originally posted by: Soundmanred

Originally posted by: sjwaste
You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

Here's a link to UCC Article 4. It's a legal term of art. Take your bullshit elsewhere.

EDIT: Bonus. Article 3.

You dumbass... he's saying you spell like a dipshitter. ENDORSE not INDORSE

can't believe you quoted a bunch of BS when he was just correcting your spelling

If you click the links you'll see that "indorse" is in fact correct. It's a variant that's less common colloquially but apparently is used in official settings. You look a little silly now, btw.

If only ATOT was an official setting.

I don't understand your comment. The fact that "indorse" is not the term that the typical ATOT user would choose does not make it any less correct. The fact is that gorcorps called another user a dumbass for a "spelling mistake" that was actually correct. I don't see how an informal setting changes this at all.

 

[sjwaste]

Originally posted by: Juked07
I don't understand your comment. The fact that "indorse" is not the term that the typical ATOT user would choose does not make it any less correct. The fact is that gorcorps called another user a dumbass for a "spelling mistake" that was actually correct. I don't see how an informal setting changes this at all.

Haha, he got me. I was sitting there thinking, "How can I give an informed response that answers the OP's question, but also stirs the pot since the correct answer isn't supposed to be in the first response here at ATOT?"

Then a lightbulb went off in my head. I'll spell it like they do in the Uniform Commercial Code, the very source of the correct answer. Heads will explode, people will flame me!

/sarcasm

Seriously, I never expected that it would cause this much controversy. I'm sort of surprised that someone called me a dumbass after I posted a link, but I guess nobody reads those. "Indorse" happens to be a very correct spelling in the English language and also happens to be in the statutory text. I guess I should drink some Brawndo and dumb it down next time.

 

[Regs]

Bascially OP, it's a battle of words.

 

[spidey07]

Ownage of the year nomination. sjwaste is the owner.

Soundmanred and gorcorps are the recipients of this prestigious award.

 

[manlymatt83]

Originally posted by: Juked07

Originally posted by: gorcorps

Originally posted by: sjwaste

Originally posted by: Soundmanred

Originally posted by: sjwaste
You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

Here's a link to UCC Article 4. It's a legal term of art. Take your bullshit elsewhere.

EDIT: Bonus. Article 3.

You dumbass... he's saying you spell like a dipshitter. ENDORSE not INDORSE

can't believe you quoted a bunch of BS when he was just correcting your spelling

If you click the links you'll see that "indorse" is in fact correct. It's a variant that's less common colloquially but apparently is used in official settings. You look a little silly now, btw.

Yeah. PWNED.

 

[dabuddha]

Originally posted by: spidey07
Ownage of the year nomination. sjwaste is the owner.

Soundmanred and gorcorps are the recipients of this prestigious award.

I second this nomination.

 

[spidey07]

Originally posted by: dabuddha

Originally posted by: spidey07
Ownage of the year nomination. sjwaste is the owner.

Soundmanred and gorcorps are the recipients of this prestigious award.

I second this nomination.

It's got all the makings. Very first post by sjwaste CLEARLY shows he knows what he is talking about, answers OPs question very succinctly. In the first response nonetheless. Then the fail comes. Then the ownage.

And it's all quoted for posterity.

 

[Kev]

Originally posted by: astroidea
So let me get this straight... if I indorse a cheque, it allows for anyone to deposit it?

OMGLERN2SPEL

 

[JTsyo]

Does depositing a un-endorsed check through the ATM count as endorsing it or is the bank using the "statutory exemption" to cash that check?

 

[maziwanka]

Originally posted by: sjwaste
You do it because you're negotiating the check to the bank so that they can deposit it for you. There is actually a statutory exemption for a bank to be able to demand payment on a non-indorsed check on behalf of its customer, but a signature is preferred.

It's the same way you can sign the back of a check and give it to someone as payment for something, provided that they accept it. As long as you've indorsed the back, you've negotiated the check to them and they can demand payment on it.

A check works like this: You, the drawer, write it out to the order of some jerk from craigslist for his old couch, the payee. The bank from whom you will draw the funds is the drawee bank. The payee can present the check to the drawee and demand payment, since it is made out to the order of payee. He's trading the instrument, payable upon the order of him as payee, for the cash.

He could also indorse it, give it to some jerk from craigslist for used slippers, and that jerk can present it to the bank and demand payment, provided that the original payee indorsed it.

wow. that is exactly what it is.

you have to be a lawyer (i am)