Legal Question in Banking Law in New Jersey

Depositing a check with 2 signature required into one's own account

I had a JTWROS Mutual Fund account with my mother. My mother cashed in the funds and had a checked made out to her & me, without my knowledge. She then deposited it into her bank account, signing just her name and again, I was not aware of this. It is legal for the bank to accept a deposit to one's own private account, when the check states that it's payable to 2 people. Isn't when a check says payable to You & Me, don't both have to sign that check. If not, I'm probably the only one in the world who doesn't have a clue of why then are bank accounts with ''And'' seem then to be the same as ''Or''...There got to be a differance or else they wouldn't have it. I wait for your reply...Thanks


Asked on 7/31/08, 3:51 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Re: Depositing a check with 2 signature required into one's own account

The issue here is not who is named on the account, but how the check was drawn. If the check was made payable "to the order of A and B", then both A and B must endorse the check in order for the bank to negotiate it. If it was endorsed by only one of the payees, then the bank (among others) is liable to the missing endorser (among others) for the effect of the defective endorsement.

Your first course of action should be to contact the payor (the Mutual Fund) and ask them to stop payment on the check and re-issue it. Point out the defective endorsement to them. If you do that in time, that check should come all the way back through the banking system as a dishonored instrument, and, when the deposit account is debited, the fund should issue a replacement check. Likely that won't happen as I described, but it is important that you start there.

Do that now. The clock is running. After the dust settles, you can talk to your lawyer about how to proceed.

My firm handles matters of this type, however it may be easier for you to work with a lawyer whose office is closer to you. If I can be of further help to you, call or email.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 7/31/08, 4:34 pm


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