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Check Endorsements: What are the different types?

 
 
DarkProtoman
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      10-13-2006, 10:24 PM
What are the different types of check endorsements, and what does each
one mean? And what's the difference b/w "for deposit" and "for
collection"? Thanks!!!!!

 
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John Boyle
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      10-13-2006, 11:30 PM
In message <(E-Mail Removed) om>,
DarkProtoman <(E-Mail Removed)> writes
>What are the different types of check endorsements, and what does each
>one mean? And what's the difference b/w "for deposit" and "for
>collection"? Thanks!!!!!
>

Are you sure this a UK question? Your answer will determine my answer.
--
John Boyle
 
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DarkProtoman
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      10-14-2006, 12:47 AM

John Boyle wrote:
> In message <(E-Mail Removed) om>,
> DarkProtoman <(E-Mail Removed)> writes
> >What are the different types of check endorsements, and what does each
> >one mean? And what's the difference b/w "for deposit" and "for
> >collection"? Thanks!!!!!
> >

> Are you sure this a UK question? Your answer will determine my answer.
> --
> John Boyle


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!!!!!

 
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Peter King
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      10-14-2006, 04:07 AM

DarkProtoman wrote:
> John Boyle wrote:
> > In message <(E-Mail Removed) om>,
> > DarkProtoman <(E-Mail Removed)> writes
> > >What are the different types of check endorsements, and what does each
> > >one mean? And what's the difference b/w "for deposit" and "for
> > >collection"? Thanks!!!!!
> > >

> > Are you sure this a UK question? Your answer will determine my answer.
> > --
> > John Boyle

>
> 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

 
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DarkProtoman
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      10-14-2006, 05:30 AM

Peter King wrote:
> DarkProtoman wrote:
> > John Boyle wrote:
> > > In message <(E-Mail Removed) om>,
> > > DarkProtoman <(E-Mail Removed)> writes
> > > >What are the different types of check endorsements, and what does each
> > > >one mean? And what's the difference b/w "for deposit" and "for
> > > >collection"? Thanks!!!!!
> > > >
> > > Are you sure this a UK question? Your answer will determine my answer.
> > > --
> > > John Boyle

> >
> > 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?

 
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John Boyle
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      10-14-2006, 12:17 PM
In message <(E-Mail Removed) om>,
DarkProtoman <(E-Mail Removed)> writes
>
>John Boyle wrote:
>> In message <(E-Mail Removed) om>,
>> DarkProtoman <(E-Mail Removed)> writes
>> >What are the different types of check endorsements, and what does each
>> >one mean? And what's the difference b/w "for deposit" and "for
>> >collection"? Thanks!!!!!
>> >

>> Are you sure this a UK question? Your answer will determine my answer.
>> --
>> John Boyle

>
>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!!!!!
>

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
--
John Boyle
 
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John Boyle
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      10-14-2006, 12:34 PM
In message <(E-Mail Removed)>, John Boyle
<(E-Mail Removed)> writes
>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.
>


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.
--
John Boyle
 
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DarkProtoman
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      10-14-2006, 08:29 PM

John Boyle wrote:
> In message <(E-Mail Removed)>, John Boyle
> <(E-Mail Removed)> writes
> >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.
> >

>
> 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.
> --
> John Boyle


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.

 
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John Boyle
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      10-14-2006, 11:26 PM
In message <(E-Mail Removed) .com>,
DarkProtoman <(E-Mail Removed)> writes
>
>John Boyle wrote:
>> In message <(E-Mail Removed)>, John Boyle
>> <(E-Mail Removed)> writes
>> >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.
>> >

>>
>> 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.
>> --
>> John Boyle

>
>The US has the latter, which is called a blank endorsement;


Same here, but if the cheque bears two parallel straight lines then
there are restrictions on title by negotiability, bit not
transferability.
>crossing is
>achieved by the payee writing "For Deposit Only/Acct. #/Signed Name"
>on the back.
>


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.



--
John Boyle
 
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DarkProtoman
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      10-15-2006, 12:00 AM

John Boyle wrote:
> In message <(E-Mail Removed) .com>,
> DarkProtoman <(E-Mail Removed)> writes
> >
> >John Boyle wrote:
> >> In message <(E-Mail Removed)>, John Boyle
> >> <(E-Mail Removed)> writes
> >> >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.
> >> >
> >>
> >> 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.
> >> --
> >> John Boyle

> >
> >The US has the latter, which is called a blank endorsement;

>
> Same here, but if the cheque bears two parallel straight lines then
> there are restrictions on title by negotiability, bit not
> transferability.
> >crossing is
> >achieved by the payee writing "For Deposit Only/Acct. #/Signed Name"
> >on the back.
> >

>
> 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.
>
>
>
> --
> John Boyle


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?

 
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