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No Payee on the Check: Who's Responsible?

Answered by: 
Barbara Hurst

Question: 
One of our customer made out a check with no payee. The intended recipient claims non receipt. The check was deposited with no endorsement. The bank of first deposit returned our request of Forged Endorsement as "Same as cash". Who is liable for payment?
Answer: 

A check payable to "Cash" or "Bearer", or a check with NO payee's name on the pay-to-the-order line is payable to anyone who chooses to cash it. It is an authorized payment, requiring no endorsement, and is the total liability of the customer or signer of the check. Both the drawee bank and the cashing bank are off the hook.

First published on BankersOnline.com 6/4/01

First published on 06/04/2001

Filed under: 
Operations
Filed under operations as: 
Claims
Endorsement
IT

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