Cashier's check payee issue?

Discussion in 'After Hours Lounge (Off Topic)' started by Brad Porter, Jun 30, 2005.

  1. Brad Porter

    Brad Porter Screenwriter

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    When you can't find the answer on the net, ask the After Hours gang...

    I went to the bank and withdrew a certain amount (I'm not telling how much) on a cashier's check payable to 'X' (hint: a made-up name for the sake of this example)

    I have since realized that I probably should have made it payable to 'Y'.

    Is it legal for me to cross out 'X' and manually write in 'Y'? Do I need to initial the change? I'm confused because the bank has issued the money to itself out of my account and the cashier's check will transfer the funds to the payee because it is now really a check that they have written that I am transporting. I don't want the bank to raise a fuss if 'Y' tries to cash a check that their electronic system says was made out to 'X'. Please tell me I don't have to go back to the bank...

    The first person to answer correctly gets a Virtual Karma bonus of +10. [​IMG]

    Brad
     
  2. ChristopherDAC

    ChristopherDAC Producer

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    The legal thing to do is have "X" indorse the cheque, which them becomes payable to bearer rather than to order. If absolutely necessary, he can indorse it to "Y". Many banks will call this a "third-party cheque" and make a fuss about it, but it's the Uniform Commercial Code: they must pay.
     
  3. Brad Porter

    Brad Porter Screenwriter

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    Unfortunately, 'X' and 'Y' are the same entity. 'X' is a brand name of the product, while 'Y' is the company name. Since 'X' is just a brand, my concern is that 'X' is an invalid payee.

    Brad
     
  4. Joseph DeMartino

    Joseph DeMartino Lead Actor

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    Call "X" and ask what they advise. If their bank will accept the check as written, no problem. (The bank for John Jones Motors of Schenectedy might be perfectly happy to accept a check made out to "Chevy of Schenectedy" as part of the dealer's deposit if he's a Chevy dealer, for instance.) If that won't work, go back to your bank and ask for a corrected check. If you're a good customer they will be happy to do issue a new check, destroy the bad one and perhaps waive the service fee for the replacement check. That's what my bank did a few years ago when I had a similar situation come up.

    Regards,

    Joe
     
  5. Brad Porter

    Brad Porter Screenwriter

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    So you're saying that I definitely can't just cross it out and write in another name then? I hope they'll be able to cash it as is.

    Just to satisfy the curious, 'X' = "Onix", 'Y' = "AV123.com", and the amount on the check is enough to fill my basement with a kickass Rockets 7.1 speaker system (actually minus the .1, which I'll be buying from SVS rather soon).

    Brad
     
  6. Joseph DeMartino

    Joseph DeMartino Lead Actor

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    Right. Think about it. If you could do that, what would stop anybody on the street from doing the same thing if you lost the check? Half the point of getting a cashier's check made out to a specific payee is ensuring that only that person can endorse the check. (The other reason for using a cashier's check is, of course, to assure payment, since the bank confirms that the funds are on hand.)

    Either they can endorse the check or you'll need to get a new one. No alternations allowed as far as I know.

    Regards,

    Joe
     
  7. Nathan*W

    Nathan*W Screenwriter

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    You definately can't. The check is not yours to do so. The way a Cashier's Check works is that you give your money to the bank and they deposit it into an account that they control. (Think of the bank as a person with a checking account. The rules are the same.) Then they issue a check to whom you designate. So even though the money is yours, the check is not. It'd be the same if you gave some cash to your Uncle Fred and told him to write a check to Sally's Hardware. It's your money, but it's Uncle Fred's check.
     
  8. Kirk Gunn

    Kirk Gunn Screenwriter

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    Is there room on the line to add AV123.com:

    i.e.

    "Onix / AV123.com" ? The payee's bank probably wouldn't have an issue with that....
     
  9. Michael Reuben

    Michael Reuben Studio Mogul

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    They might not spot it, but if they did, they'd have a problem.

    This is very simple, and it has nothing to do with the fact that it's a cashier's check. Brad is not the maker of the check. Any alteration by him would be forgery, just the same as if someone took your rent check, crossed out your landlord's name, and wrote in their own. For precisely that reason, a depositing bank would be likely to question a check that had obviously been altered. And if not the depositing bank, the paying bank might well raise the issue and refuse to honor the check.

    M.
     
  10. Joseph DeMartino

    Joseph DeMartino Lead Actor

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    Did you notice that the check was printed out on a special printer with a special typeface and all? Honestly, there is a reason for this stuff. How many different ways do experience people have to say "No" before the idea gets across to people that you can't bloody alter a cashier's check and that if you could it would defeat the purpose of using the damned things.

    How tough is it really to take thing back to the bank and get a new one? Even if you have to pay the fee again, it is only a few bucks, obviously a fraction of what the check itself is worth. I can't believe we're up to 10 posts and over 30 hours since the question was asked and answered and people are still looking for ways around the problem. [​IMG]

    Regards,

    Joe
     
  11. Brad Porter

    Brad Porter Screenwriter

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    Update:

    1. It should have been made out to 'Z', which is "Perpetual Technologies". The guys there apologized to me for not telling me this, but it's as much my fault for not thinking to ask.
    2. I paid with my credit card. Unfortunately, now SVS will have to wait until next month.
    3. The bank was happy to have me endorse the cashier's check and write that it was "not used for the purpose intended" on the back. There was no charge for putting the money back in my account. It was an extra 15 minutes out of my day - no big deal.
    4. The check did have lots of fancy writing on it and I was pretty sure of the answer to the question before I even posted here, but it's much easier to ask for impossible things in the After Hours Lounge than it is anywhere else. [​IMG]
    5. Most importantly, DAMN those speakers are sweet looking. Still hooking everything up, so no comments on the audio yet.


    Thanks for the help, guys. +15 Virtual Karma points for everyone. [​IMG]

    Brad
     
  12. Joseph DeMartino

    Joseph DeMartino Lead Actor

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    And that's the main thing, isn't it? Hope they sound as good as they look and provide you with many years of happy listening.

    Regards,

    Joe
     

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