Unsigned Check

[Robert J. Romano]

If I receive an unsigned check, may I write "signature guaranteed" on
the back and cash or deposit it?

[Jon Beaver]

mca...@aol.com wrote:

> "Robert J. Romano" wrote:
>
>|If I receive an unsigned check, may I write "signature guaranteed" on
>|the back and cash or deposit it?
>

>I think that depends on the bank. In my experience, I've had unsigned
>checks sail through the process at major banks without question, while
>small banks or S&Ls are much more careful. I'd call the bank where you
>plan to deposit the check.

I have deposited a couple of unsigned checks, and my bank just enorsed
it "Signature Guaranteed" and sent it through. Of course, I am
personally known at my bank branch and the checks were for amounts
less than my usual minimum account balance. My questions, is whether
this technically violates any federal banking regulations. My
impression is that regulations are getting more restrictive about what
special treatment banks can give to favorite customers.

-Jon Beaver

[splu...@my-dejanews.com]

In article <6m4hjd$m...@panix3.panix.com>,

"Robert J. Romano" <rjro...@sprynet.com> wrote:
>
> If I receive an unsigned check, may I write "signature guaranteed" on
> the back and cash or deposit it?

The answer is: Would you be comfortable if a person could do that with a
check of yours that they found in the trash?? Didn't think so.

-----== Posted via Deja News, The Leader in Internet Discussion ==-----
http://www.dejanews.com/ Now offering spam-free web-based newsreading

[plum...@feist.com]

In article <6m4hjd$m...@panix3.panix.com>,
"Robert J. Romano" <rjro...@sprynet.com> wrote:
>
> If I receive an unsigned check, may I write "signature guaranteed" on
> the back and cash or deposit it?
>

My initial response to your post may have seemed a bit flip. I'm a
Midwestern lawyer. Out thissaway, your bank might well take the check
for deposit, but the issuing bank (i.e. the bank against whom it was
drawn) would almost certainly dishonor it. That means it would be
charged back against your account later--with possibly unpleasant
consequences.And our banks have gotten very, very sticky about doing
favors for preferred customers--perhaps, as another poster suggested,
because federal regulations are a changin'.

[Seth Breidbart]

In article <6mon6r$n...@panix3.panix.com>, <plum...@feist.com> wrote:
>In article <6m4hjd$m...@panix3.panix.com>,
> "Robert J. Romano" <rjro...@sprynet.com> wrote:
>>
>> If I receive an unsigned check, may I write "signature guaranteed" on
>> the back and cash or deposit it?
>My initial response to your post may have seemed a bit flip. I'm a
>Midwestern lawyer. Out thissaway, your bank might well take the check
>for deposit, but the issuing bank (i.e. the bank against whom it was
>drawn) would almost certainly dishonor it.

Do banks in your neighborhood actually look at checks? Around here
they don't, at least up to some threshold like $10,000 - 50,000.

I've actually done that, and had it done to one of my checks that I
forgot to sign. (The check sailed right through; I could have
dishonored it, but since it was intended as a valid payment and I
actually owed the money, I didn't.)

Seth

[pdmar...@my-dejanews.com]

In article <6mon6r$n...@panix3.panix.com>,
plum...@feist.com wrote:
>
> My initial response to your post may have seemed a bit flip. I'm a
> Midwestern lawyer. Out thissaway, your bank might well take the check
> for deposit, but the issuing bank (i.e. the bank against whom it was
> drawn) would almost certainly dishonor it.

They could...not so sure as a practical matter that they would. Check
processing at large banks is all automated. Just as anecdotal evidence, a
friend of mine is convinced that they never check signatures at all and has
sent unsigned checks and checks signed "Mickey Mouse," etc. to pay bills.
They always go through. (Note: This is NOT recommended, nor should anyone
take one person's experience with large institutions as an indication that
they won't have any problems depositing unsigned checks into their personal
accounts.)

You are certainly right to point out that there can be unpleasant consequences
if the bank on which the unsigned check is drawn refuses to honor it after the
depositor's bank takes it.

Paul

[Daniel R. Reitman]

On 24 Jun 1998 20:05:31 -0400, pdmar...@my-dejanews.com wrote:
>. . . .

>They could...not so sure as a practical matter that they would. Check
>processing at large banks is all automated. Just as anecdotal evidence, a
>friend of mine is convinced that they never check signatures at all and has
>sent unsigned checks and checks signed "Mickey Mouse," etc. to pay bills.
>They always go through. (Note: This is NOT recommended, nor should anyone
>take one person's experience with large institutions as an indication that
>they won't have any problems depositing unsigned checks into their personal
>accounts.)

One of my profs told the story that a few years ago, a prof at my
school (who remained nameless) told his commercial law class that a
check issued to "A Keg of Nails" would be bearer paper, under the
no-clearly-identifiable-payee rule. So one of the students walked
into a local bank and tried it. The bank asked the prof not to do
that again.

Dan, ad nauseam

[Roberta and Craig Becker]

On the topic of banks not being particularly careful about
check processing, I'd like to offer up

http://www.dnai.com/~pcombs/$$tablecontents.html

which is an amusing way to while away a half hour or so. I'd
advise against doing what this guy did.

Craig
--
-- Craig Becker bec...@bga.com http://www.bga.com/~beckers Austin, TX USA --
-- HTML Consulting & Publishing Services - http://www.perpendicular.com/ --

[Stuart O. Bronstein]

Daniel R. Reitman <drei...@teleport.com> wrote:
>
>One of my profs told the story that a few years ago, a prof at my
>school (who remained nameless) told his commercial law class that a
>check issued to "A Keg of Nails" would be bearer paper, under the
>no-clearly-identifiable-payee rule. So one of the students walked
>into a local bank and tried it. The bank asked the prof not to do
>that again.

Yeah, we had the same problem with the old "check written on side of cow"
story.

--
Stu (delete * from email address)

"We have several set forms which are held as law, and so held and used
for good reason, though we cannot at present remember that reason".

Chief Justice Fortescue, 1458

[Hilary B. Miller, Esq.]

On 15 Jun 1998 21:26:05 -0400, "Robert J. Romano"
<rjro...@sprynet.com> wrote:

>If I receive an unsigned check, may I write "signature guaranteed" on
>the back and cash or deposit it?

Indeed you may, and many banks will sign such checks and process them
for their good commercial customers.

* hil...@miller.net *
* Law offices of Hilary B. Miller, Esq. *
* 112 Parsonage Road *
* Greenwich, Connecticut 06830-3942 *
* (203) 861-6262 Voice *
* (203) 622-6264 Fax *

[Steve Jones ©]

splu...@my-dejanews.com wrote in article <6mom25$l...@panix3.panix.com>...
> In article <6m4hjd$m...@panix3.panix.com>,

> "Robert J. Romano" <rjro...@sprynet.com> wrote:
> >
> > If I receive an unsigned check, may I write "signature guaranteed" on
> > the back and cash or deposit it?

> The answer is: Would you be comfortable if a person could do that with a
> check of yours that they found in the trash?? Didn't think so.

They *can* do that, so it's not the answer.

The correct manner to cash a check sans signature, is to endorse it:
"Lack of Signature Guranteed by Payee"

Now back to your check in the trash scenario, the depositing bank will
not cash/deposit such a check unless they are sure they have recourse
against the payee, so if/when you discover and charge back the trashed
check at your bank, the payee's bank will remove the funds from their
account.

You, the person who had a check minus signature cashed against your
account, would never be responsible for any $$ lost so long as you
notified you bank of the error within a reasonable timeframe.

Steve

[Jon Beaver]

hil...@miller.net (Hilary B. Miller, Esq.) wrote:

>On 15 Jun 1998 21:26:05 -0400, "Robert J. Romano"

><rjro...@sprynet.com> wrote:
>
>>If I receive an unsigned check, may I write "signature guaranteed" on
>>the back and cash or deposit it?
>

>Indeed you may, and many banks will sign such checks and process them
>for their good commercial customers.

... and if it bounces, they will just charge it back to your account.
No problem.
-Jon Beaver

[Edward G. Puhl]

I disagree. The term "signature guarantee" means the guarantor is
warranting the genuineness of the signature which, in this case, is missing.
It used almost exclusively in connection with stock transfers which require
a bank officer to guarantee the signature of the transferor.

By contrast, if you negotiate an unsigned check and it bounces, it can be
charged back to your account (with service charges) because of your
endorsement. The Uniform Commercial Code, adopted in some form in all
states, imples "transfer and presentment warranties" in this transaction,
which provide the basis for the bank to charge back the endorser. That has
nothing to do with "signature guarantees."
Regard,
Edward G. Puhl
Note: This information should not be relied upon as a substitute for legal
advice from an attorney familiar with the facts of your case.
Jon Beaver wrote in message <6navjp$1...@panix3.panix.com>...

[Jon Beaver]

"Edward G. Puhl" <ep...@mail.wideopen.net> wrote:

>I disagree. The term "signature guarantee" means the guarantor is
>warranting the genuineness of the signature which, in this case, is missing.
>It used almost exclusively in connection with stock transfers which require
>a bank officer to guarantee the signature of the transferor.
>
>By contrast, if you negotiate an unsigned check and it bounces, it can be
>charged back to your account (with service charges) because of your
>endorsement. The Uniform Commercial Code, adopted in some form in all
>states, imples "transfer and presentment warranties" in this transaction,
>which provide the basis for the bank to charge back the endorser. That has
>nothing to do with "signature guarantees."

You are correct, Sir! Lawyers do have to pay attention to these
distinctions. Actually, when I forget to sign a check and it's
presented at my branch for deposit, they stamp it "Signature
Guarnateed" and run it through the system. If one of my clients fails
to sign a check, and I try to deposit it at my bank, they refuse it
for deposit. Interesting.
-Jon Beaver