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Information AboutBank Cheque |
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(as evidenced in the lower left corner of the check), on behalf of Community Bank .]] The check is usually received as cash since it is guaranteed by the bank and does not depend on an account of a private individual or business. Cashier's checks are commonly used when payment must be credited immediately upon receipt for business, real estate transfers, tax payments and the like. CHARACTERISTICS Cashier's checks feature the name of the issuing Bank in a prominent location, usually the upper left-hand corner or upper center of the check. In addition, they are generally produced with enhanced security features, including Watermark s, Security Thread , Color-shifting Ink , and special bond paper. These are designed to decrease the vulnerability to counterfeit items. In order to be recognized as a cashier's check, words to that effect must be included in a prominent place on the front of the item. The Payee 's name, the written and numeric dollar amounts, the remitter's information, and other tracking information (such as the branch of issue), are printed on the front of the check. The check is generally signed by one or two bank employees or Officer s; however, some banks issue cashier's checks featuring a Facsimile signature of the bank's CEO , CFO , or other senior official. Some banks contract out the maintenance of their cashier's check Account s and check issuing. One leading contractor is Integrated Payment Systems , who issues cashier's checks and coordinates redemption of the items for many banks, in addition to issuing money orders and other payment instruments. In theory, teller's checks are checks issued by a financial institution but drawn on another institution, as is often the case with Credit Union s. LEGAL DEFINITION Under Article 3 of the Uniform Commercial Code , a cashier's check is effective as a note of the bank. Also, according to Regulation CC (Reg CC) of the Federal Reserve , Cashier's checks are recognized as "guaranteed funds" and amounts under $5000 are not subject to deposit holds, except under certain circumstances. ALTERNATIVES AND RISKS Money Order s are a popular alternative to cashier's checks and are considered safer than personal bank checks, however, they are generally not recognized as "guaranteed funds" under Reg CC . Cashier's checks have been used in certain scams to steal from those who sell their goods online. SEE ALSO NOTES |
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