Legal Question in Business Law in California

Re: Check Cashing Laws

First, while there are some absolute rules in the check-acceptance business, most matters of this kind are up to the policy of the particular bank.

To give you an example, I have cashed checks where the amount was "Fifty Bucks" instead of Fifty Dollars, but some banks wouldn't honor a check using this common nickname for dollar.

I also write checks to individuals I do business with frequently using either (for example) Bill or William, depending on my mood or how much of a hurry I'm in. Those people never have a problem.

On the other hand, someone returned a check where I'd forgotten to write in the dollar amount in words. His bank wouldn't let his write it it, even though the amount (in figures) was plainly there, and it was for under $50.

So, you see, policies differ from bank to bank, branch to branch, customer to customer and occasion to occasion. The BofA manager admitted as much when he made the exception for you.

Personally, I doubt that the maker of the check used your nickname in a deliberate attempt to frustrate your negotiating the check. There are two reasons: first, in most cases it won't work. Second, if it did, you could cause him a bunch of trouble.

I think your Wells Fargo bankers were a bit off base in not allowing you to deposit the check into your account with them. It was up to Wells to ID you as the depositor; BofA would have nothing to do with it and as a practical matter would have NO WAY to tell whether it was Bill or William who presented the check at Wells!!!

Re: Check Cashing Laws

Howdy:

There shouldn't've been a problem with the check originally. Had you not mentioned it to Wells Fargo and just deposited it into your account, the check would've processed through just fine.

When a check goes through the clearing process, it is never actually looked at ... there are just too many of them.

Next time, endorse the check as it's written to you, write your account number on it, and deposit it in your bank.

Whenever a bank is asked if something is ok, the teller will almost always tell you no. Never ask permission to carry out business.

But, getting a check written to you with your nickname was fine.

rkr

Re: Check Cashing Laws

Since you asked about the law, rather than about bank policy, here is what California Uniform Commercial Code section 3204 says:

"(d) If an instrument is payable to a holder under a name that is not the name of the holder, indorsement may be made by the holder in the name stated in the instrument or in the holder's name or both, but signature in both names may be required by a person paying or taking the instrument for value or collection."

So legally you can endorse the check as written or with your legal name, but the bank can require you to endorse twice: once with each name.