Checks payable to bank for cash

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Question:

Are we liable if we cash a check from a customer made payable to our institution and it is returned for some reason? Do checks to be cashed need to be payable to cash or in the customers name?

Answer:

Checks to be cashed should be payable to cash (assuming they're written out in the bank lobby) or to the individual who will cash them. In either case, the bank will require an endorsement.

A bank should not accept a check that's payable to the bank except for sums due the bank (loan payment, safe deposit box rent, etc.)

First published on BankersOnline.com 8/6/12