Issue with cheque "A/c payee only"

The words might suggest that, but long-established banking practice says otherwise. I suspect that it turns on the point that endorsing a cheque in favour of another person makes that person the payee.
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" A/C payee only" surely means that the cheque has to be lodged to the account of the person in whose name it is made out and as that person has died , it cannot be endorsed

Of course, maybe anything goes nowadays;)
 
A/c Payee only and the requirement to lodge it to an account with the payees name only is not mentioned in any statute.

However case law has set a precedence that if a bank accepts such a cheque into an account other then that of the payee, without carrying out sufficient investigation it can be held to be negligent if an issue arises subsequently
 
If levelpar's interpretation were correct, then we would have an absurd situation where a bank could hold on to money which it had been ordered to pay out. If a cheque is not defective, it should be honoured.

I am not familiar with the precedent Mpsox mentions, but I am quite happy to believe it: it seems very reasonable. My opinion of reasonableness also includes the view that inspection of the Grant of Probate would amount to "sufficient investigation".
 
Padraigb said:
A cheque crossed "a/c payee" can be endorsed in favour of another person and lodged to that person's account. Your mother is the legal representative of your father's estate, so she has the same legal capacity to endorse a cheque as your father would have had. An endorsement by her "as executor of the estate of ..." should be sufficient.
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One upon a time the banks accepted endorsed "A/C Payee Only" cheques - not now. I've had endless trouble with one particular bank over this and they maintain it has always been the case, even though I proved to them that they habitually accepted endorsed crossed cheques before. It seems the banks are now tightening up so much that it will become impossible to get even your own money out!!
 
If levelpar's interpretation were correct, then we would have an absurd situation where a bank could hold on to money which it had been ordered to pay out
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Ordered to pay out by whom?
 
levelpar said:
Ordered to pay out by whom?
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By the person who signed the cheque. Look at a cheque: the formula of words starts with "Pay ...". It is a written order from an authorised signatory on an account to the banker to pay a stipulated amount to somebody.
 
Has the estate been finalised, and all your father's accounts closed? If so, can you not contact whoever issued the check and ask them to send a new one.
 
Seagull... the reasons for not getting it re-issued have been outlined by the OP in the earlier part of the thread.
 
By the person who signed the cheque. Look at a cheque: the formula of words starts with "Pay ...". It is a written order from an authorised signatory on an account to the banker to pay a stipulated amount to somebody
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Yes and in this case that "authorised signatory" who made out the "written order" made it payable to someone who since died and for some reason made to A/C payee only.
 
levelpar said:
Yes and in this case that "authorised signatory" who made out the "written order" made it payable to someone who since died and for some reason made to A/C payee only.
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None of that would invalidate the right of the executor to receive the moneys.
 
MaryBM said:
One upon a time the banks accepted endorsed "A/C Payee Only" cheques - not now. I've had endless trouble with one particular bank over this and they maintain it has always been the case, even though I proved to them that they habitually accepted endorsed crossed cheques before. It seems the banks are now tightening up so much that it will become impossible to get even your own money out!!
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One of my daughters received an "A/C Payee Only" cheque for her birthday recently. I gave her the cash and lodged the endorsed cheque in an account of mine in Permanent TSB and didn't have any problems.
 
Crossed Cheque

In the situation where a cheque is crossed "a/c Payee Only". Is it possible to lodge to a different account by using the automated Lodgment machine sin the lobby of almost all the banks now??
 
No it will be checked before processing and then sent back to the person who tried to depoist it incorrectly.
 
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