Where Do You Sign a Cashiers Check?
Demystify cashier's check signatures. Get clear instructions on where the payee signs and whose signature validates the check.
A cashier’s check is a secure payment method issued by a bank or financial institution, drawn against its own funds rather than an individual’s account. This guarantees funds, making it a reliable choice for significant transactions like real estate purchases or large payments. The bank’s backing ensures the check will not bounce, offering peace of mind to the recipient.
Endorsing a Cashier’s Check
The payee, the individual or entity to whom the cashier’s check is made payable, must sign the check on the back to endorse it. This signature goes on a designated endorsement line or box on the back of the check. The payee should sign their name exactly as it appears on the “Pay to the Order of” line on the front of the check. If there is a misspelling, endorse the check with the misspelled name first, followed by the correct spelling.
There are different ways to endorse a cashier’s check, each with varying levels of security. A blank endorsement involves only the payee’s signature, which makes the check payable to anyone in possession of it, posing a security risk if lost. For increased security, a restrictive endorsement, such as writing “For Deposit Only” above the signature, limits the check’s use to only being deposited into an account. This prevents someone else from cashing it.
When a cashier’s check is made out to multiple payees, the wording between their names determines who must sign. If “and” connects the names (e.g., “John AND Jane Doe”), both individuals must endorse the check. If “or” is used (e.g., “John OR Jane Doe”), either individual can endorse and negotiate the check. In cases where the wording is ambiguous, or if names are simply listed without “and” or “or,” banks may have discretion, and it is best to have all listed payees sign.
Understanding the Issuer’s Signature
The purchaser of a cashier’s check does not sign the front of the check. The bank or financial institution that issues the cashier’s check is the “drawer.” An authorized representative of the bank, such as a teller or bank officer, signs the check on the front to validate it. This signature, along with other security features, ensures the check’s authenticity and guarantees funds. The purchaser provides the necessary funds and payee information to the bank but does not sign the check.