Problem with a Cheque

S

stepbar

Guest
Hi Folks,

Have a "bit" of a problem with a cheque. I sold "my" shares in Vodafone (the shares are in my mother's name because I was too young to buy shares back when Eircom floated). The cheque came out in the post yesterday with her name on it and "a/c payee only" on it. Its drawn on a BOI branch in Dublin. The cheque is only for 100 eur. Im wondering if I can lodge it to my a/c if I get her to sign the back of it and I sign it as well.

Stephen
 
Thats what I normally do when I get a cheque and I want to lodge to my wifes account or visa versa and there has never been any problem. If your worried about it ask your bank before you lodge the cheque
 
stepbar said:
Hi Folks,

Im wondering if I can lodge it to my a/c if I get her to sign the back of it and I sign it as well.
Click to expand...

My limited understanding of "a/c payee only" is that it can only be lodged to an account in the name of the person to whom it is payable. Your mother would have to lodge it to her account and then write you a cheque for €100
 
A/C Payee is there for the protection of both the person giving and receiving the cheque. I would not be impressed if a bank cashed it or put in somebody elses account. It shouldn't be a problem for you mother to transfer money to your account afterwards
 
Joe1234 said:
My limited understanding of "a/c payee only" is that it can only be lodged to an account in the name of the person to whom it is payable. Your mother would have to lodge it to her account and then write you a cheque for €100
Click to expand...

yes, the "a/c payee only" marking does exactly what it says on the tin, I had a share cheque laste week for less then EUR 2, and I had to lodge it.

however, it is believed that there are exceptions to the rule if you have some sway with your bank, naturally all is well unless it is later queried.
 
Bank Manager said:
Joe 1234 is correct.

BM
Click to expand...

I do not agree.

Four types of crossing

1 / /
2 & Co
3 Account payee only
4 Not negotiable

Crossings 1, 2, 3 have no legal standing and therefore a cheque with any of these crossings is capable of being endorsed to a third party*. Bank will have full protection under Cheques Act 1959 if they negotiate a cheque in this way.

4 means what it says. Cheque cannot be negotiated by anybody else other than the payee. Bank is deemed negligent if this instruction is ignored and a problem later arises.

Unfortunately - the vast majority of cashiers are trained to take a cautious line and will interpret crossings 1, 2 and 3 at face value i.e. will not permit endorsement to a third party.

*for the purposes of lodging the cheque not cashing it.
The third party becomes the 'payee' and the cheque should be lodged to their account
 
nlgbbbblth said:
I do not agree.

Four types of crossing

1 / /
2 & Co
3 Account payee only
4 Not negotiable

Crossings 1, 2, 3 have no legal standing and therefore a cheque with any of these crossings is capable of being endorsed to a third party*. Bank will have full protection under Cheques Act 1959 if they negotiate a cheque in this way.

4 means what it says. Cheque cannot be negotiated by anybody else other than the payee. Bank is deemed negligent if this instruction is ignored and a problem later arises.

Unfortunately - the vast majority of cashiers are trained to take a cautious line and will interpret crossings 1, 2 and 3 at face value i.e. will not permit endorsement to a third party.

*for the purposes of lodging the cheque not cashing it.
The third party becomes the 'payee' and the cheque should be lodged to their account
Click to expand...

"Account Payee Only" - means exactly what it says on the tin........

Cheque must be lodged to an account in the name of the payee only, it is not negotiable.

BM
 
Actually - this is the 'legally' bit..........

Restrictive crossing: 'A/c Payee only' crossing is also called a restrictive crossing since it has the effect of restricting further transfers. It is a directive to the paying bank that the proceeds be released for the account of payee only. But, it is the collecting bank which has to ensure that the proceeds are credited to the account of payee only and no other.

If the collecting banker allows the proceeds of the cheque so crossed to be credited to any other account, he may be held guilty of negligence in the event of an action for wrongful conversion of funds being brought against him.

BM
 
You must log in or register to reply here.
Back
Top