What is a Check?

A Check is a bill of exchange drawn on a bank payable on demand. It is

a substitute for money but has no legal tender power.

Types of Check:
Memorandum Check- a check on

which is written the word memo signifying the intention to pay check upon presentment. Cashiers Check- drawn by the cashier of a bank in the name of the bank against itself payable to a third person.

Managers Check- the same as the

cashiers check, drawn by the manager of the bank in the name of the bank against itself payable to third person.
Certified Check- a check whereby the

word certified is written on its face whereby the drawee bank agrees to pay upon presentment for payment.

Stale Check- a check not presented

within a reasonable period of time after issue. None presentment renders it worthless and valueless.
Check deposited six (6) months after

issue is consider stable. Treasury warrant is considered stale after one (1) year of issue.

Cross Check- a check, which bears across its

face two (2) parallel lines drawn diagonally on the upper left side. The diagonal lines serve as a warning to the teller that the check is for deposit only and not for encashment.
Travelers Check- a check denominated in foreign currency used as a convenient method of supplying the traveler with sufficient fund instead

of carrying cash. This check is to be signed by the buyer at the time it is issued and countersigned before it is disposed. The purpose is to prevent fraud.