Check Endorsements: What are the different types?

In message , DarkProtoman writes

Are you sure this a UK question? Your answer will determine my answer.

I'm in America, but this is the only general finance group I can find. The concepts should be the same for both countries. Thanks!!!!!

The concepts are completly different

How?

In message , DarkProtoman writes

Sadly they are not. for example, the two terms you describe do not exist as 'endorsements' to cheques in UK. Whilst our Bills of Exchange Act and the practices contained within it is largely copied around the world and the terms of the Uniform Rules for the Collection of Commercial Paper is an international standard, Our 1957 Cheques Act and its more recent amendments together with our bank clearing system make us quite different to US practice.

It was obvious that your spelling of cheque and the basis of you question was not a matter that could be answered in UK Banking Law.

None the less I think I can cast some light on it, but I may be wrong. 'For deposit' is likely to mean that when the payee pays the cheque into his account at his bank that bank will credit his account right away but will mark the funds as 'awaiting collection'. i.e. waiting to be paid for the cheque.

'For collection' is likely to mean that whilst the bank might give the payee a receipt, his account wont be credited until the collecting bank (i.e. the one where the payee has paid it in) gets the money from the drawee (i.e. the bank upon which the drawer has drawn the cheque).

HTH

In message , John Boyle writes

Just realised I forgot to add that this crossing' could also mean that the cheque cant be 'cashed', it can only be paid into a bank account.

Also, in US when you say 'endorsement', in UK we say 'crossing' or 'restricted crossing'. In UK, 'endorsement' is when the rear of the cheque is signed by the holder and passed to another holder.

The US has the latter, which is called a blank endorsement; crossing is achieved by the payee writing "For Deposit Only/Acct. #/Signed Name" on the back.

In message , DarkProtoman writes

Same here, but if the cheque bears two parallel straight lines then there are restrictions on title by negotiability, bit not transferability.

This is another example of the differences between UK & US. These days UK cheques are generally preprinted with the restrictive crossing 'account payee only' which restricts negotiability but not transferability/ In UK such a restriction needs to be 'on the face of it' not the rear. In any event the restriction would be a 'crossing' not an 'endorsement'. So whilst you say that 'crossing is achieved', I would challenge your assertion that 'US has the latter' because it plainly doesnt because it would appear in US the words are on the rear of the cheque not the face.

But it acheives the same effect, doesn't it? And what does "non-negotiability" mean? How can a check, a negotiable instrument of payment, be used if it's not? Wouldn't that be voiding it?

In message , DarkProtoman writes

Oh yes! but only in the respective country. If a cheque duly crossed/endorsed were presented in the other country then it wouldn't work!

It means the instrument loses its negotiability. I.e. a it is not possible for a holder of a cheque subsequent to the payee which bears the crossing "a/c payee only" to obtain the status of a 'holder in due course'.

These days a cheque can usually achieve almost all its uses despite losing its negotiability just so long as the payee doesnt endorse the cheque and attempt to assign it to somebody else other than the collecting bank.

I cant see why.

Your earlier post said "The concepts should be the same for both countries. " and in answer to another post asserting that " The concepts are completly different" you said "why?"

Perhaps this thread is showing you that things are very different.

If I went to Britain and used my checkbook, and the clerk doesn't notice, what would happen? Would they send it to the FX to get it changed into GBPs? What if I used my debit or credit card?

In message , DarkProtoman writes

5 Canada Square London E14 5AQ United Kingdom Tel: +44 20 7174 4000 Fax: +44 20 7174 6400

Its highly unlikely that it is a branch with a counter service for cash transactions.

If you drew Sterling, the yes.

Ah, sorry. In that case the scenario of the clerk not noticing is just as unlikely because cheques arent used as much these days (plastic being the main way) for counter purchases and when they are they usually have to be supported by a Cheque Guarantee Card which you would be unlikely to have. None gthe less these cards generally wont guarantee cheques over £250 so cheques have use for larger anounts.. If you were able to present a cheque though, and it was drawn in sterling then the procedure I described in my previous post would still apply, i.e. the cheque would be sent for collection. In days gone by US cheques took an age to collect because the US clearing system and its multitude of small banks made things very slow.

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