Alteration of payee name - Is it allowed?

I agree that the check was completed, but that is only half the story. Completions are not problems if they reflect the intent of the drawer of the check. A check is properly payable to the person intended by the drawer.

If the drawer, for example, wrote a check to "Tommy" and gave it as a birthday gift to her grandchild, it would be perfectly permissible for Tommy -- or the bank, as in your case -- to complete the payee line by adding Tommy's last name. As long as the correct person received the funds, there is no legal problem.

If a different Tommy obtained control of the check and added his last name, that would be an alteration, and the check would not be properly payable to him.

First published on BankersOnline.com 10/03/05