Show ONE MINUTE TALKS ON BANKING CHECKS AS A RECEIPT uy by common consent and practice as aa well as ag by law a properly and paid bank check constitutes a leg al receipt for or money paid tho the one thing more than anything else that makes ita it a legal receipt Is the indorse mont it incorrectly indorsed endorsed indor sed or if tho the endorsement indorsement Indor la is unauthorized ot 01 a forgery the chock check does doea not operate as ag a legal receipt furthermore it bank baik lays itself open to loss in pay ing a check improperly indorsed endorsed indor sed it is for that reason that banks are un able to pay checks it the are not proper in every way DONT HOLP HOLD CHECKS EITHER CASH olt oil DEPOSIT THEM the person who keeps checks tn III hla his I 1 possession for more than a reasonable time believing that they are equivalent to actual money is assuming a risk of losing the amount involved As all checks aro are paid in order of presentation at the paying bank and not according to the order in which the drawer issued them they should be presented tor for payment at as early a date as aa poa possible may I 1 suggest that you follow the only safe coulso couise and either deposit or cash all checks within twenty tour four hours from the time they como come into your possession I 1 it if it will inconvenience you to cull call at houi your bank I 1 recommend that you mall mail all such checks in for credit to 1 your account under no circumstance allow youself to get into tile the habit of holding checks beyond a reasonable I 1 1 time for as sure as yo ye do you will meet with a loss somo some e these are cases of record where persons holding checka tor for three lays days did so at their peril losing the amount involved dy by holding chocks checks beyond a reasonable time you automatically relieve the in dorsers and lit in some circumstances tho the drawer from all liability prom from a preely business standpoint one should cash or deposit at once all checks received rece led in order to keep anea ties funds readily and quickly available CHECKS PAYABLE TO 0 BEARER LegaJ legally ly checks payable 10 to lo bearor bearer need no indorsement endorsement Indor title and ownership the thereto theretta retti passing by dell very although banks in paying such checks usually ask to havo have thorn them in by the person presenting them in order to create evidence as aa to whom the money iwas paid according to law banks hie aio not required to demand identification of persons pre seating checks payable to bearer where a bearer flieck has been casher by a a person parson not entitled to the funds represented thereby recovery is well nigh impossible in accepting a bearer check from a holder other I 1 than the drawer occure the holders indorsement endorsement Indor it p possible opale should payment ot of tile the cheok check be refused refuse pou can then call apoi upon n the In Indo dorser raer to make the chock cheek good to yau NOTATION SI HiON ON CHUCKS the importance of a written notation on a cheek check Is often overestimated the paying bank may and usually does disregard such notations As a memorandum notation indicating the purpose for which tile the payment la is being made serve a good purpose but not in all cases do they mean that an obligation has been ully fully discharged nor does the fact that the payee mallad cashed ed a check bearing a notation necessarily mean that in doing so ho he relinquishes all claims to further payment before the obligation la Is met in full As aa a hypothetical me case wo we will say that you buy a diamond ring for paying cash the balance to be paid in thirty ahyo before the thirty days elapse you become convinced that the he ring is worth only however without raising the question of price adjustment with him you send the merchant your check tor for on the face ace of which you have written this notation in full tor for diamond ring tha merchant cances the check and sends you a statement showing a balance due si ct in cafes caba of this kind the courts havo have held that the notation does docs not release you from paying the balance due on the ring but had you first dis buted the mei merchants chants claim stating that you did not intend to pay more and had later sent him your check for or with the same notation written on an its face ace he would then have released you from rom urther further payment by bi cashing it in order oi der to make n ake notations ons it taj thair t b the tre placing 0 of on the face ace ot of ach achach cli and the subsequent cashing ashing of 0 the check by the payee much aluch depends upon whether or not the sum Is in question la Is in dispute |