Cheque endorsements | General financial discussion | Discussion forum

Norman1 said
Payee Alice can order the cheque to be paid to the order of Bob. Bob can then order the cheque to be paid to the order of Cindy. Cindy orders the cheque to be deposited to the credit of her bank account. Cheque is then deposited to the credit of Cindy's bank account and not to the credit of Alice's account.

Bill said
Interesting. In practical terms what documentation would Cindy need for her bank to accept the deposit to her account based on a cheque made out to Alice?

The endorsements on the back of the cheque:

Not all banks will accept cheques endorsed over to the account holder for deposit. For example, EQ Bank does not:

4. Cheque Parameters and Eligible Items

You agree to the following whenever you deposit a cheque:

• Only paper cheques that are made payable solely to you can be deposited. Items payable jointly or payable to someone else and endorsed to you will not be accepted;

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