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Joint Account Holder Deposit Check w/ Cash Back?

Question: 
On a joint account, can one account holder deposit a check with cash back (less cash return) that has the other account holder's name on the 'made payable to' section of that depositing check?
Answer: 

If the payee endorsed the check in blank, it is a bearer instrument and the joint account holder could reasonably take cash back on the deposit. The best practice is that an account holder would acknowledge receipt of the funds on the deposit slip.

If the payee placed a restrictive endorsement on the check; e.g. "For Deposit Only," then the joint account holder could not receive cash back on the deposit. He would need to write a check to "Cash" instead.

First published on BankersOnline.com 10/24/11

First published on 10/24/2011

Filed under: 
Operations
Filed under operations as: 
Endorsement
IT

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