The more we talk through this the more confusing the definitions appear. Could someone please explain what a nonbank is to Reg CC in relation to the issuance of a Teller's Check?

From the commentary: The definition in the regulation includes not only checks drawn by a bank on another bank, but also checks payable through or at a bank. This would include checks drawn on a nonbank, as long as the check is payable through or at a bank. The definition does not include checks that are drawn by a nonbank on a nonbank even if payable through or at a bank.

Would a Fidelity Investments or Charles Schwab check be considered a tellers check?? Or a Merrill Lynch disbusement check? Some of these are easy to distinguish, others...not so much!

What is a check drawn by a nonbank on a nonbank???

A non-bank company provides money order and official check services for financial institutions. The checks are payable at the non-bank company, but are routed through a bank. Official checks issued by banks drawn on the non-bank company are therefore teller's checks.

Think Integrated Payment Systems, Inc. (IPS).

Fidelity Investments/Charles Schwab/Merrill Lynch checks are not teller's checks because they aren't issued by banks.

Thanks, John. That helps me in figuring out all the nuances.

Just for clarification though, if a check is presented that has been issued by Charles Scwab the company and is payable at Charles Schwab Bank, would that be considered a Cashiers Check?

It seems that just as soon as everyone is comfortable with the knowledge that an investment or insurance company does not garner next day availability, we get a check drawn off of Allstate Bank or Charles Schwab Bank!!

No. A cashier's check must be issued by and drawn on the same bank. The check you've described is drawn by a bank depositor, not by the bank itself.

If the entity issuing check is a bank, it's either a cashier's check or a teller's check. If the entity issuing the check is not itself a bank, it's not a cashier's check or teller's check.

Got It!! Thank you!!