Transcript A Cashier’s Check 100.00 8006244785 Richard M. Rosenberg

A Cashier’s Check
Drawee Bank
8006244785
VOID AFTER SIX MONTHS
Bank of America
MATCH THE AMOUNT IN WORDS WITH THE AMOUNT IN NUMBERS
BANK OF
AMERICA
100.00
Pay to the ***SHANNON RICHMOND***
Order of
Payee
CASHIER’S CHECK
ISSUED IN US DOLLARS
Authorized Signature
VOID OVER $100.00
||8006244785|| |121000358| 13973 84013||
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Richard M. Rosenberg
PURCHASER:
SHANNON RICHARD
Two signatures required.
Drawer Bank of America NT&SA
Drawer
A Certified Check
Drawee Certification Acceptor
STEPHANIE ROE
10 PARK AVE.
ST. PAUL, MN 55123
June 8 20 01
2206
Payee
John Doe
Five thousand &
no/100
Pay to the
Order of
THE FIRST NATIONAL BANK OF MYTOW
332 MINNESOTA STREET
MYTOWN, MINNESOTA 55555
Drawer
||94’’’77577|| 0885
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$5,000.00
Dollars
Drawer
Stephanie Roe
A Poorly Filled-Out Check
XYZ CORPORATION
10 Industrial Park
ST. PAUL, MN 55123
Pay to the
Order of
June 8 20 01
John Doe
||94’’’77577|| 0885
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$100.00
One Hundred and no/100
THE FIRST NATIONAL BANK OF MYTOW
332 MINNESOTA STREET
MYTOWN, MINNESOTA 55555
2206
Dollars
Stephanie
Roe
The Collection Process
DRAWER
Buyer issues check drawn on New York
Bank to seller (payee) located in
California.
PAYEE
Seller deposits check in
San Francisco Bank
(depositary and collecting bank).
DEPOSITARY AND
COLLECTING BANK
San Francisco Bank sends check for
collection to Denver Bank (intermediary
and collecting bank).
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DRAWER AND PAYOR BANK
New York Bank
• Debits buyer’s (drawer’s) account for
amount of the check
•Sends canceled check (or copy) to buyer
(drawer).
INTERMEDIARY AND
COLLECTING BANK
Denver Bank sends check for collection to
New York Bank (drawee and payor bank).
How a Check is Cleared
CHECK
CITY BANK
San Francisco
FEDERAL RESERVE BANK
San Francisco
FEDERAL RESERVE BANK
Philadelphia
Checking Account
Jeanne Sutton
+$20.00
Reserve Account
City Bank
+$20.00
Reserve Account
First National Bank of PA
-$20.00
FIRST NATIONAL BANK
Philadelphia
Checking Account
Pamela Moy
-$20.00
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Checks and the Banking System
Checks
1. Cashier’s check
2. Traveler’s check
3. Certified check
The BankCustomer
Relationship
1. Contractual relationship
2. Creditor-debtor relationship
3. Agency relationship
Bank’s Duty to
Honor Checks
Generally, a bank has a duty to honor its customers’
checks, provided that the customers have sufficient
funds on deposit to cover the checks
1. Overdrafts
2. Postdated checks
3. Stale checks
4. Stop-payment orders
5. Death or incompetence of a customer
6. Forged drawers’ signatures, forged
indorsements, and altered checks
Chapter 21
Checks and the Banking System
(Continued)
Bank’s Duty to
Accept Deposits
The Collection
Process
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A bank has a duty to accept deposits made by
its customers into their accounts.
1. Definitions of banks
a. Depositary bank
b. Payor bank
c. Collecting bank
d. Intermediary bank
2. Check collection between customers of the
same bank
3. Check collection between customers of
different banks
4. How the Federal Reserve System clears
checks
5. Electronic check presentment
Checks and the Banking System
(Continued)
Electronic
Fund
Transfers
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1. Types of EFT systems
a. Automated teller machines (ATMs).
b. Point-of-sale systems.
c. Direct deposits and withdrawals.
d. Pay-by-telephone systems.
2. Consumer fund transfers
3. Commercial transfers