Handling Checks Made Out to Multiple Parties: What You Need to Know
Learn how to cash or deposit checks made out to multiple parties and the endorsement requirements.
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When a check is made out to multiple parties, it generally requires all parties to endorse it before it can be cashed or deposited. If the names are separated by 'and,' all parties must sign. If separated by 'or,' usually any one of the named parties can endorse the check. Check with your bank for their specific requirements to avoid potential issues.
FAQs & Answers
- What does it mean if a check is made out to multiple parties? A check made out to multiple parties requires the endorsement of the specified parties according to how their names are listed. It could mean needing all signatures or just one, depending on whether 'and' or 'or' is used.
- Do all parties need to endorse a check made out to them? If the names are separated by 'and,' all parties must endorse the check. If they are separated by 'or,' then only one party's endorsement is required to cash or deposit the check.
- Can I deposit a check made out to multiple parties at any bank? You should check with your specific bank for their requirements regarding checks made out to multiple parties, as policies may vary.
- What happens if one party refuses to endorse a check made out to multiple parties? If one party refuses to endorse the check and there is an 'and' in the check, it cannot be cashed or deposited until all parties endorse it. If there is an 'or,' the check can typically still be processed by the endorsing party.