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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