Required Endorsement for Check to Sub Contractor

You need to have the endorsement of the general contractor either in blank or to the order of the subcontractor. Either is fine. Assuming that the general contractor is an entity rather than an individual, the signature and title of the signing representative of the general contractor ought to be part of that endorsement.Although an endorsement by your customer, the subcontractor, is not required under UCC 4-205, it's good to have it.

If the check is for a substantial sum, you'd be wise to require documentation of the authority from the general contractor for its representative to endorse the check on its behalf.

First published on BankersOnline.com 1/30/12