Fun Fact Friday: The Checking System

The checking system (how our checks work) is governed by a complex set of rules. Though not strictly related to estate planning, many clients choose to pay their attorneys using checks. The system is quite intricate, but here are a few highlights for you:

  • If a check is made payable to two or more parties with "and" in the middle, both must sign it. If a check is made payable to two or more parties with the names separated by "or," "and/or," by a slash, or with one name above the other, either party can sign it. (UCC Section 3-110)

  • It is perfectly proper for a bank to pay a postdated check before its date unless the customer has give the bank notice of the postdating. (UCC Section 4-401)

If you want to learn more, check out Articles 3 and 4 of the Uniform Commercial Code.

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Disclaimer: The information contained in this website is provided "as-is,"' with no warranties or guarantees. This information should not be considered as actual legal, tax or investment advice and you should always contact a certified accountant, a tax professional, or an attorney before making any financial decisions. While every attempt has been made to provide current and accurate information, neither the author nor the publisher can be held accountable for any errors or omissions. The user is solely liable for any and all reliance, use, or action on this information.